MAYZ - Cardano Index Funds - FlexToken Orders

[GENERAL] Name and surname of main applicant

Federico Ledesma

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Not Incorporated)

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

4

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Implement FlexToken Orders in the MAYZ Protocol, an index fund protocol, allowing users to deposit partial Invest Unit tokens and receive Fund Tokens (FT), enhancing accessibility and liquidity.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

Project will be fully open source. The code will be available on GitHub. All our smart contracts to develop indexes in Cardano are Open Source.

https://github.com/MAYZGitHub/

MAYZ Protocol builds open-source projects to foster transparency, collaboration, and community involvement in the development of its decentralized finance solutions.

By adopting an open-source approach, MAYZ Protocol encourages innovation, improves security, and promotes widespread adoption of its permissionless platform for creating and managing investment funds on the Cardano blockchain. 

This approach aligns with the decentralized and community-driven nature of blockchain technology, ensuring that MAYZ Protocol remains accessible and adaptable to the evolving needs of the Cardano ecosystem.

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

This year, Charles Hoskinson discussed "Liquidity and Value", explaining ways Cardano could improve its liquidity. One approach is developing decentralized index protocols, which can bring value to Cardano Native Tokens by creating demand. Users can deposit ADA and other tokens into smart contracts, automatically converting them to Cardano tokens.

https://www.youtube.com/watch?v=Iu3eiX7lJyA

Our FlexToken Orders smart contract is part of this set of smart contracts allowing users to invest in Cardano Native Tokens easily and in a decentralized manner.

We're building upon the existing framework of the MAYZ Protocol, enhancing its functionality, robustness, and user-friendliness. MAYZ Protocol is a decentralized platform for creating and managing investment funds on Cardano, using Fund Tokens (FT) to represent shares in these funds.

We aim to optimize user engagement by integrating novel functionalities, specifically FlexToken Orders, into the MAYZ Protocol. This enhances the existing protocol and pathways to acquire Fund Tokens (FT), which represent shares in the diversified portfolios of funds created within the MAYZ Protocol.

Our project facilitates a more inclusive and dynamic interaction with the protocol, designed to engage various participants in the Cardano ecosystem. We aspire to streamline their interaction with the protocol and provide access to diversified portfolios of Cardano native tokens.

The importance of this proposal to Cardano is manifold. It resonates with Cardano's ethos of decentralization and community engagement. It brings a novel, user-centric perspective to the ecosystem's growth and is a potential blueprint for future developments within the Cardano blockchain. Ultimately, it aims to position Cardano as a more appealing option within the DeFi sector, driving its adoption and reinforcing its place as a critical player in decentralized finance.

The solution

At the core of our proposal are the FlexToken Orders. These will offer an alternative and efficient way to acquire Fund Tokens (FT). They are designed to aid users who may not possess all the necessary tokens in an Invest Unit to deposit into the fund directly. This facilitates broader user participation within the fund.

Users will be able to create an Order in the contract and send any amount of some of the tokens that make up the Invest Unit they're trying to acquire. The community plays a crucial role in our system. Those who create FlexToken Orders will leave a fee that can be claimed by others in the community who fulfill these orders, either partially or entirely, giving back their own FT in exchange for the locked tokens and the fee. This fosters a spirit of cooperation and incentivizes active participation within the ecosystem.

When fulfilling an order, the user will sell their FT tokens at market price and get the offered tokens at the market price at the moment of the conversion/trade. For this, Oracle prices will be fetched. The creator of the order will also be able to set a minimum acceptable price in ADA that they're willing to accept for the sale. We'll design this contract to interact with the robust oracle data feed we've developed for the MAYZ Protocol, providing the accuracy necessary for users to make informed trading decisions.

The FlexToken Orders will create a new pathway for users to participate in MAYZ Funds. It will complement the existing Swap Offers that are already implemented, which allow users to trade FT for ADA and vice versa.

By making Fund Tokens more accessible and creating an array of trading opportunities, we anticipate that our system will stimulate a community effort to maintain an adequate supply of orders to meet demand. The vibrant exchange environment thus created will foster a sense of community, drive user participation, and underpin the success of our proposal. This holistic, community-focused approach is a crucial feature of our project, reflecting our commitment to building a truly inclusive and engaging ecosystem.

In the technical realm, implementing FlexToken Orders within the MAYZ Protocol will involve significant work in both backend and smart contract development and frontend user interface (UI) design.

Regarding the REST API, we'll build a robust interface to facilitate smooth communication between the front end, the smart contracts, and the oracle data feeds. This will involve developing a comprehensive set of endpoints that allow for secure and efficient interactions with the contracts. Each endpoint will be designed with a specific function in mind, ensuring that every aspect of the user experience, from creating an order to filling one, is handled seamlessly.

By introducing FlexToken Orders, we're not just adding a feature to MAYZ Protocol; we're opening up new possibilities for engagement with Cardano native tokens, furthering the protocol's mission of democratizing finance on Cardano.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

The FlexToken Orders project will significantly enhance the Cardano ecosystem by introducing an innovative, user-friendly method for participating in decentralized index funds. This project promotes inclusivity by allowing users to deposit partial fund tokens through FlexToken smart contracts, breaking down barriers for smaller liquidity providers and market participants. The project supports the ethos of decentralization, accessibility, and community collaboration, which are core principles of Cardano.

Key Impacts:

• Increased Participation in Cardano's DeFi Ecosystem: Increased Accessibility: By allowing partial token deposits, we lower the entry barrier for participating in MAYZ Funds, making the protocol more inclusive to a wider range of users.
• Enhanced Liquidity and Utility for Cardano Native Tokens: FlexToken Orders will facilitate more frequent and diverse token exchanges, potentially increasing liquidity for Cardano native tokens included in MAYZ Funds.
• Community Engagement: The order fulfillment mechanism encourages active participation from the community, fostering a collaborative ecosystem.
• DeFi Innovation: This feature showcases Cardano's capability to support complex DeFi mechanisms, potentially attracting more developers and users to the ecosystem.
• Token Utility: Increased participation in MAYZ Funds could drive demand for various Cardano native tokens, enhancing their utility and value.

Measuring Impact:

To ensure the success and effectiveness of the project, we will employ both quantitative and qualitative metrics:

Quantitative Metrics:

1) User Participation:

• Track the number of unique users engaging with the FlexToken Contracts.
• Unique addresses interacting with MAYZ Protocol
• Measure the total value locked (TVL) in the Mayz index funds.
• Monitor the number of transactions made through the FlexToken system.
• 
  

2) Liquidity Increase:

• Track liquidity levels for Cardano Native Tokens within the index funds before and after the implementation.
• Monitor trading volumes involving Fund Tokens (FT) and associated Cardano native tokens.
• 
  

3) Fulfillment Rates:

• Measure the percentage of FlexToken Orders that are fulfilled and the average time it takes to fulfill them.

4) Protocol:

• Total Value Locked (TVL) in MAYZ Funds and Protocol

Qualitative Metrics:

1) User Feedback:

• Gather feedback from users on the ease of use and effectiveness of the FlexToken Contracts.
• Collect testimonials on how the project has enabled greater participation in the Cardano DeFi ecosystem.

Sharing Outputs and Opportunities:

Open-Source Code:

• All smart contracts, code, and documentation will be fully open-source and shared on our GitHub repository (https://github.com/MAYZGitHub). This will allow other developers to use, modify, or build upon our work.

Reporting:

• We will publish regular reports on the progress of the project, including metrics on user participation, liquidity levels, and community feedback. These reports will be available on the MAYZ website, GitHub and Medium.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

We are a team of experienced Haskell developers and members with a university degree in economics. Our core smart contracts are live on Testnet and have been succesfully reviewed by Tx Pipe engineers. 

Our open-source contributions on GitHub have demonstrated our commitment to transparency and collaboration. This history reinforces our capability to manage complex technical projects and deliver secure and innovative solutions.

Feasibility of the Approach

We have carefully designed our project to ensure its feasibility through the following steps:

Technical Validation:

We will conduct rigorous testing of all smart contracts. This will ensure that our FlexToken Contracts are secure, functional, and optimized for performance before deployment.

Our use of versioned smart contracts and oracle integration has been thoroughly tested in other parts of the MAYZ Protocol, reducing the risk of unknown technical challenges.

User-Centric Approach:

We will engage in extensive user testing during the development process to ensure that the interface and user experience are intuitive. Feedback from beta testers will help us identify and resolve any issues before a wider release.

We will also utilize real-world scenarios through testnet environments to validate the feasibility of the FlexToken Contracts. This will allow us to refine the system based on community feedback and performance under different market conditions.

Financial Feasibility:

• Our budget of ₳140,000 has been carefully calculated to cover all phases of the project, from development to auditing and community engagement. We have detailed cost breakdowns to ensure efficient allocation of resources.
• We will use a portion of the funds for third-party security audits of our smart contracts, which is critical for ensuring trust in the system.

Trust and Accountability

To ensure high levels of trust and accountability, we will follow these key processes:

• Transparent Fund Management:
• We will provide monthly reports to the community detailing how the funds are being used. These reports will include breakdowns of costs, progress on development milestones, and any challenges encountered. Transparency will be a cornerstone of our operations.
• We will establish a multisig wallet for the management of funds, ensuring that no single individual has complete control. This will enhance security and accountability.
• Open Communication:
• We will maintain an open communication channel with the Cardano community through forums, GitHub, and regular updates on social media platforms. This will allow stakeholders to follow our progress and provide feedback or ask questions.
• Community members will be able to review our development work in real-time on GitHub, where we will share our source code, test results, and documentation.
• Third-Party Audits:
• We will engage a recognized third-party auditor to review our smart contracts for security vulnerabilities. This is a crucial step to ensure that the system is safe for users to participate in and that funds are properly secured.
• The audit report will be shared publicly, further demonstrating our commitment to security and transparency.
• Roadmap and Milestones:
• We will establish clear project milestones, ensuring that the community can track our progress against deliverables. Each milestone will have specific outputs, such as contract deployments, user interface development, and testing phases.
• In case of any delays or obstacles, we will communicate these transparently and work with the community to find solutions.

Conclusion

Our team’s strong technical foundation, prior experience with the MAYZ Protocol, and commitment to transparency and open-source development position us well to deliver this project with a high level of trust and accountability. By adhering to rigorous testing, auditing, and transparent reporting processes, we ensure that the Cardano Index Funds - FlexToken Orders project will be a valuable and secure addition to the Cardano DeFi ecosystem.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

FlexToken Order Smart Contract Development

A: Milestone outputs

• Initial version of FlexToken Order smart contract
• Basic unit tests for the smart contract
• Updated project documentation

B: Acceptance criteria

• Smart contract compiles without errors
• Basic unit tests pass
• Documentation describes the new contract functionality

C: Evidence of milestone completion

• GitHub repository update with new contract code
• Test execution results
• Short video explaining the basic structure and functionality of the new contract

Frontend UI Design for FlexToken Orders

A: Milestone outputs

• Simple design for FlexToken Order UI
• Basic implementation of UI components
• Integration with existing MAYZ Protocol frontend

B: Acceptance criteria

• UI design is consistent with MAYZ Protocol's existing look
• Basic functionality (create order, view orders) is implemented
• UI components work with existing frontend

C: Evidence of milestone completion

• Screenshots of the new UI design
• GitHub repository update with new UI code
• Short video demonstrating how to use the new UI components

Oracle Integration and API Updates

A: Milestone outputs

• Basic oracle integration for token pricing
• Updated API to support FlexToken Orders
• Simple API documentation update

B: Acceptance criteria

• Oracle provides token prices (even if simulated for testing)
• API can handle basic FlexToken Order operations
• API documentation includes new FlexToken Order endpoints

C: Evidence of milestone completion

• GitHub repository update with oracle integration and API changes
• Updated API documentation in the repository
• 
  
• Short video showing how the oracle and API work with FlexToken Orders

Testnet Deployment and Project Wrap-up

A: Milestone outputs

• FlexToken Orders deployed on Cardano Testnet
• Basic user guide
• Prepared Project Close-out Report and Video

B: Acceptance criteria

• FlexToken Orders can be created and filled on testnet
• User guide explains how to use FlexToken Orders
• Project Close-out Report and Video are completed

C: Evidence of milestone completion

• Testnet transaction IDs for a FlexToken Order operation
• User guide document
• Final video demonstrating the complete FlexToken Order feature on testnet
• Project Close-out Report and Video

[RESOURCES] Who is in the project team and what are their roles?

Diego Macchi – Team Lead

Diego Mac is a truly Cardano OG with vast DeFi experience. As the team lead, Diego will provide strategic guidance for the project and ensure alignment between the project’s technical and operational goals. His experience in leading Cardano-based projects will help streamline decision-making and collaboration across teams.

Alfred Vilsmeier - Smart Contracts Architect

Alfred is a highly skilled tech enthusiast with over 22 years of experience in the IT field. Alfred is well-versed in various areas, including scripting, Database Administration, Networking, Security, and Cardano node management. With his extensive experience, proficiency in various domains, and a keen interest in blockchain development, Alfred is well-equipped to tackle complex challenges and contribute to the advancement of technology in the ever-evolving landscape of the IT industry. He is a true OG of the Cardano community and operates the TOPO stake pool.

Luis Restrepo - Developer Team

Luis Restrepo has 20 years of experience working in multi-cultural environments and in several initiatives in technology and in Cardano Blockchain. Started as a Stake Pool Operator (Ticker: Moxie), his journey in Cardano has been full of initiatives and projects from DeFi protocols to educational platforms focused on the Latin American community. Cardano Developer Professional instructor at Emurgo Academy. Instructor of the Cardano deep dive concepts and Plutus Smart Contracts developing. Known programming languages: SQL, Python, JavaScript, TypeScript, Haskell, Plutus. 

Elio Esis - Web Developer

Web developer with experience in vanilla JS, REACT, Angular, NextJs, and TypeScript. Knowledge of Node ExpressJS and Java Spring backend. Development of static and dynamic responsive pages. Web developer with vast experience on Cardano.

Federico Ledesma Calatayud – Project Manager

Federico is a Cardano Stake Pool Operator [MAYZ] and a funded proposer in F12. As the project manager, he will lead the overall project execution, ensuring that the team stays on track to deliver the Cardano-based Haskell smart contract prototype. Federico will oversee day-to-day operations, coordinate between the development and integration teams, and ensure that the project meets all critical milestones on time and within budget.

Diego Torres - Integrations.

Diego is a Cardano Ambassador and organizer of the Patagonia CIP1694 Workshop. He has also been a funded proposer in F11 and F12. Diego leads the development of the project’s documentation and educational resources, ensuring that the solution’s concept, architecture, and potential applications are communicated clearly and effectively. He will collaborate closely with technical experts to ensure the accuracy and accessibility of the project's documentation and onboarding materials for users and investors.

Cinthia Caraballo – Technical Writer

Cinthia is an experienced technical writer with deep knowledge of blockchain technology, particularly Cardano and Plutus. She will be responsible for creating detailed technical documentation, whitepapers, and educational content. Her work will ensure that complex concepts are communicated in a way that is understandable to both technical and non-technical users.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Development and Project Management -  ₳65,000

• Project management and coordination
• Smart contract development and testing
• Frontend UI design

Technical Integration - ₳45,000

• Oracle Integration
• API development and testing

Versioning and Optimization - ₳30,000

• Contract versioning system implementation
• Comprehensive testing and optimization

Total ₳140,000

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The FlexToken Orders project will drive user engagement, promote market liquidity, and foster collaboration within the Cardano community. The value it brings in terms of ecosystem growth and adoption justifies the associated costs.

• The project budget includes costs for smart contract development, frontend UI/UX design, oracle integration, and testing. These tasks require specialized expertise, and we have benchmarked the costs against industry standards for blockchain developers and DeFi projects. For example:

• Blockchain developer rates: In the global market, the average cost for experienced smart contract developers ranges from $75 to $150 per hour, depending on their location and expertise. The developers on our team fall within this range.

• UI/UX designers and front-end developers: These roles typically command $50 to $100 per hour, which is consistent with what we've allocated in the project budget.

Given the complexity of the tasks and the need for highly secure code in DeFi applications, these rates are justified and aligned with the current market standards.

• Open-Source Development for Long-Term Value The entire project will be open-source, which means that once completed, the code will be freely available to the wider Cardano developer community. This ensures that the investment has long-term value beyond just this project, as other developers can build upon and enhance our work. The open-source nature of the project will also promote further decentralization within the Cardano ecosystem, enhancing its overall appeal in the DeFi space.

• Security and Testing A portion of the budget is allocated to comprehensive testing, including unit tests and basic security checks. Ensuring the safety and reliability of user funds and contracts is essential in DeFi, and investing in high-quality testing minimizes the risk of vulnerabilities or exploits, providing significant value for the ecosystem.

• Oracle Integration and Infrastructure Costs The project includes technical integration with oracles, which are vital for providing accurate pricing data for FlexToken Orders. Building secure, reliable oracle integrations and maintaining the infrastructure for continuous updates requires specialized development and operations support, which we have budgeted accordingly.

• Scalability and Future-Proofing By designing with extensibility in mind, we are future-proofing the project, allowing for seamless updates and additional features without compromising the existing system. This reduces the need for costly redevelopment in the future, making this an efficient and forward-thinking investment.

• Comparison to Similar Projects In comparison to similar DeFi and smart contract projects within the Cardano ecosystem, our budget is competitive. Projects of this scale and complexity often request similar amounts, particularly when considering the scope of development, integration, and security measures required.

• Conclusion: High ROI for the Cardano Ecosystem The MAYZ Protocol - FlexToken Orders project offers excellent value for money by enhancing user accessibility to MAYZ Funds, driving liquidity, and fostering community engagement. The carefully considered costs, competitive rates, and open-source nature of the project ensure that this proposal not only benefits immediate participants but also adds long-term value to the wider Cardano ecosystem.