Lenfi Xlend- Leveraged trading on UTXO based ecosystem

[GENERAL] Name and surname of main applicant

Mantas Andriuska

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

Individual

[GENERAL] Requested funds in ada

150000

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

8

[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)

Xlend is a smart-contract-based leveraged trading client. It will utilize Lenfi V2 pools for liquidity and will allow users to create permissionless leveraged positions in Cardano native tokens.

[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

MIL license

[METADATA] Horizons

Lending

[SOLUTION] Please describe your proposed solution

We see the lack of overcollateralized and permissionless leveraged trading applications on Cardano as a significant gap. To solve this, we're developing Xlend, a smart-contract-based leveraged trading client that uses Lenfi V2 pools for liquidity. This approach allows users to create permissionless leveraged positions with Cardano native tokens.

We chose this method because leveraging existing liquidity pools is efficient and accelerates deployment. Our project will engage traders, developers, and liquidity providers interested in advanced DeFi functionalities.

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

It will result in user friendly MVP that will allow to performa transaction on Cardano Mainnet. Additionally it will create new value for DeFi users as well as Lenfi liquiidty providers. Since code will be open-sourced, people will be able to build on top or fork the application.

[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?

You can see an example of our work on app.aada.finance / lenfi.io 

Currently, our peer-to-peer lending app is the second largest lending protocol by TVL on Cardano: https://defillama.com/chain/Cardano

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

A: Milestone Outputs

• Completion of a Detailed Research Paper: We will produce a comprehensive paper outlining the development of Xlend, our smart-contract-based leveraged trading client. The paper will cover technical specifications, implementation plans, and how Xlend leverages Lenfi V2 pools for liquidity.
• Public Release of the Paper: The paper will be made publicly available for the Cardano community and other interested parties to review.

B: Acceptance Criteria

• Content Quality: The paper must thoroughly explain the project's objectives, technical approach, and anticipated benefits to the Cardano ecosystem.
• Accessibility: The paper should be published on accessible platforms such as the Cardano Forum, our official website, or repositories like GitHub.
• Community Engagement: It should invite feedback and discussions from the community to foster collaboration and refine the project's direction.

C: Evidence of Milestone Completion

• Public Link to the Paper: A URL where the paper can be accessed by anyone interested.
• Publication Confirmation: Screenshots or acknowledgments confirming the paper's publication date and platform.
• Community Feedback: Documentation of comments, discussions, or endorsements from community members engaging with the paper.

Milestone Outputs

• Development of Smart Contracts: Complete coding of the Xlend smart contracts (if needed) for leveraged trading functionality on Cardano.
• Creation of Off-Chain Components: Develop the necessary off-chain code to interact with the smart contracts, including transaction building and submission scripts.
• Public Code Repository: Publish the complete codebase to a public repository (e.g., GitHub) for transparency and community access.

B: Acceptance Criteria

• Functional Smart Contracts: Smart contracts are fully coded, and perform as intended for leveraged trading operations.
• Operational Off-Chain Code: Off-chain components successfully interact with the smart contracts, enabling end-to-end functionality.
• Code Documentation: The codebase includes clear documentation and comments for ease of understanding and future development.
• Public Availability: The entire codebase is accessible in a public repository, allowing for community review and contributions.

C: Evidence of Milestone Completion

• Repository Link: A public URL to the code repository containing related code and documentation
• Deployment Evidence: Transaction IDs on the preview demonstrating that the smart contracts are operational.
• Documentation: Inclusion of README files and code comments explaining the functionality and how to set up the environment.

A: Milestone Outputs

• Development of the UI Client: Build a user-friendly interface for Xlend that allows users to interact and perform leveraged trading.
• Execution of Mainnet Transactions: Facilitate successful leveraged trading transactions on the mainnet through the UI client.
• User Documentation: Create guides and tutorials to help users navigate the platform and perform leveraged trading.

B: Acceptance Criteria

• Functional UI Client on Mainnet: The UI client is fully developed, intuitive, and connected to the Cardano mainnet, enabling all leveraged trading features.
• Verified Transactions: Users can open and close leveraged positions, with transactions recorded on the Cardano blockchain.
• User Support Materials: Comprehensive documentation and tutorials are available, aiding users in understanding and using the platform.

C: Evidence of Milestone Completion

• Live Platform Access: A URL to the live UI client where users can access and use Xlend on the Cardano mainnet.
• Transaction Hashes: Provide transaction IDs or hashes of successful leveraged trading operations executed on the mainnet.
• User Documentation Links: URLs to user guides, tutorials, or FAQs that assist users in navigating the platform.

A: UI and smart contracts are fully ready and functional for users to use under https://xlend.lenfi.io

Final report to the community of Project Catalyst program completion.

B: UI executing loans and token swaps on mainnet

C:

Link to transaction(s) on Cardano explorer.

Link to Project Closeout Report

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

Mantas Andriuska is the co-founder and currently one of the two Aiken smart contract developers on the team. He has appeared in several YouTube and Twitter Space interviews regarding the launch and development of the Aada Finance V1 - the first peer-to-peer lending protocol on Cardano.

Lukas Armonas is a Digital Marketing expert and Project Manager of Lenfi/Aada Finance. He has appeared in several interviews and is responsible for the documentation, educational, and marketing part of the project.

Ovidijus Dargis is the Operations Manager responsible for creating and implementing business growth strategies to promote the project. He oversees various business activities like partnerships and public relations. 

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

Developer: 280 hours

Average hourly rate: 362.4 ADA

Design and UX: 80 hours

Average hourly rate: 210.2 ADA

Communications and PR and Project management: 180 hours

Average hourly rate: 160.2 ADA

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

The cost of developing Xlend represents excellent value for the Cardano ecosystem because it introduces a much-needed leveraged trading feature, filling a significant gap in the DeFi space on Cardano. We've carefully budgeted the project based on standard industry rates for blockchain development, ensuring expenses are reasonable and proportional. By enhancing the ecosystem's capabilities and attracting more users and developers, the benefits and potential growth outweigh the project's costs, delivering substantial value to the community.