Next-Gen Open-Source Orderbook DEX

[GENERAL] Name and surname of main applicant

MuesliSwap Team

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

Entity (Incorporated)

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

5

[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)

We will create a fully open-source orderbook DEX, open-sourcing the smart contracts with advanced features, DAO oversight and efficient trading to drive innovation and create a more open ecosystem.

[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

Our project is committed to full transparency and collaboration within the Cardano ecosystem by ensuring that all components of our next-gen open-source orderbook DEX are available under an open source license throughout the entire lifecycle of the project.

Open Source License: We will utilise the MIT License for all our project outputs.

Scope of Open Source Elements:

All elements of our project will be open source, including:

• Smart Contracts: All smart contracts developed for the orderbook DEX, including those enabling advanced features like auto-canceling.
• Documentation: Comprehensive documentation covering setup, usage, and integration will also be openly available.

Open Source Repository: The source code, along with all related development materials, will be hosted on GitHub. This will facilitate easy access for developers, fostering further innovation and development within the Cardano community by allowing others to contribute to and expand upon our work.

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

Our proposal addresses the need for transparency and community involvement in decentralized finance (DeFi) by focusing on the development and open-sourcing of a new version of the MuesliSwap DEX smart contracts based on a next-gen orderbook smart contract.

Enhanced Development:

• Next-gen Orderbook Smart Contracts: These smart contracts will include many features not possible with AMM-based approaches, such as time-based orders that auto-cancel and more efficient orders with lower costs. By open-sourcing the smart contracts, other developers can build advanced market makers and tools that can interact with these contracts easily due to the open-source nature of the smart contracts.

Impact and Measurement:

• Engagement Metrics: Success will be measured by the level of active community involvement in development as well as usage of the next-gen orderbook DEX. By developing a next-gen orderbook DEX we will make the Cardano ecosystem more transparent, efficient and appealing in the broader DeFi ecosystem. 

Beneficiaries and Cardano Ecosystem Value:

• Users: A more efficient and user-friendly DEX enhances accessibility and usability for all users, from novice traders to experienced investors.
• Developer Community: Open-source access empowers developers to learn, innovate, and contribute to the DeFi ecosystem on Cardano, fostering a robust developer community.

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

Value to the Cardano Community: Our project will directly enhance the Cardano DeFi landscape by introducing a fully open-source orderbook decentralized exchange (DEX). This initiative will advance transparency, efficiency, and community-driven innovation within the ecosystem. By providing advanced trading functionalities and DAO oversight, the DEX will support a more robust and versatile financial infrastructure on Cardano, appealing to both developers and users.

Measurement of Impact:

• Quantitative Metrics: We will track user adoption rates, volume of transactions processed through the DEX, and the number of contributions from third-party developers to our open-source repositories.
• Qualitative Metrics: User feedback surveys will assess satisfaction with the platform’s usability and functionality. Additionally, engagement in community forums and social media will offer insights into the community's perception and acceptance of the new platform.

Sharing Outputs and Opportunities:

• Open-Source Repositories: All developed smart contract and off-chain components, will be available on GitHub, allowing unrestricted developers to, modify, and extend.
• Documentation and Developer Guides: Comprehensive documentation and guides will be provided to assist developers in understanding and integrating with the DEX. This will include detailed API documentation and setup guides.

[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?

The MuesliSwap Team is well-known in the community and credited with delivering high-tech solutions. We started the first DEX on Cardano, months before its competition launched and to date provides the only hybrid AMM-Orderbook DEX with integrated DEX Aggregator.

In particular, MuesliSwap Team members are known to be particularly strong in developing secure smart-contract-based dApps, pioneering the development of DeFi protocols since the early days of SCs on Cardano. The described orderbook contracts with advanced features hence falls perfectly into our area of expertise. Among others, it consists of the creators of the first orderbook DEX on Cardano.

The Team has also already successfully completed multiple projects funded in Catalyst. As a large team of dedicated techies, we have the competence, capacity, and motivation to also complete this additional DeFi infrastructure project in time and with high quality.

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

Outputs: Comprehensive research on current orderbook DEXs, design of the new DEX architecture including interaction between front-end and smart contracts

Acceptance Criteria: Completion of a detailed project and architectural design documentation that will serve as guidance throughout the development of the project.

Evidence: Submission of the research report.

Outputs: Development of next-gen orderbook smart contracts featuring advanced functionalities like auto-canceling; internal auditing of these contracts.

Acceptance Criteria: Fully functional smart contracts as per the design specifications, successful internal audit with no critical issues.

Evidence: Publication of smart contracts on GitHub, internal audit report.

Outputs: Integration of our frontend with the new orderbook smart contracts, comprehensive system testing and optimization of the entire platform.

Acceptance Criteria: Seamless integration with efficient operation across the platform, successful tests showing transactions created with the frontend.

Evidence: Test results, testnet transaction showing successful interaction with the smart contracts submitted via the front-end.

Outputs: Deployment of the complete orderbook DEX system, public announcements, and creation of detailed documentation and tutorials on how to use the DEX.

Acceptance Criteria: Successful deployment of the DEX, availability of user-friendly documentation and tutorials, positive initial feedback from the community.

Evidence: Live DEX, documentation and tutorials published online, link to announcements on social media (X and Medium).

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

Our project team is composed of highly skilled and experienced individuals from the original MuesliSwap team. Each member brings specialized expertise critical for the successful delivery of our next-generation open-source orderbook DEX on Cardano. Below are the roles and responsibilities of each team member:

1. Lead Developer (Pasi): Responsible for overseeing the high-level design of the entire project, including smart contracts and front-end components, conducting internal auditing, and managing project coordination. Pasi has extensive experience in blockchain development, especially within the Cardano ecosystem, and is a founding member of the MuesliSwap team.
2. Smart Contract (SC) Developer (Philip): He focuses on the development and implementation of the next-gen orderbook smart contracts. With a strong background in Cardano's OpShin smart contract language, the SC Developer ensures the coding of primary contract logic, optimization of contract efficiency, and adherence to security best practices.
3. Marketing and Documentation Coordinator (Chris): Responsible for all marketing, community engagement, and documentation efforts. This role involves creating and executing marketing strategies to promote the DEX, coordinating outreach efforts, and developing comprehensive user guides and documentation.

Should additional resources be required, we are prepared to allocate more developers from the MuesliSwap team to ensure the project's success or hire additional developers from our pool of contractors.

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

Each of our project’s milestones is allocated a specific budget to manage resources efficiently and ensure the successful delivery of each phase. Below is the detailed cost breakdown:

Milestone 1: Research, Planning, and Design - 9,000 Ada

• Purpose: This budget covers the groundwork for the project, including defining the functional and technical requirements.

Milestone 2: Development of Next-Gen Orderbook Smart Contracts - 64,000 Ada

• Resource Allocation:
• Compensation for developers to code and optimize smart contracts, including implementing advanced features like time-based orders and auto-canceling mechanisms.

Milestone 3: Integration of Frontend with Smart Contracts - 15,000 Ada

• Resource Allocation:
• Compensation for developers to ensure seamless integration of the frontend with the backend smart contracts, conducting thorough testing to ensure functional coherence and user interface compatibility.

Final Milestone: Deployment and Community Engagement - 8,000 Ada

• Resource Allocation: Compensation for the technical team responsible for deploying the DEX on the Cardano network and for the marketing team tasked with community outreach and engagement, Creation of comprehensive user guides and operational documentation to assist users in navigating the new system.

Alternative Funding:

Should the project costs exceed the initial budget, MuesliSwap's operational funds will be utilized to cover the additional expenses, ensuring the project's completion.

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

The project budget is strategically structured to maximize value for the Cardano ecosystem, focusing on developing a cutting-edge platform that brings long-term benefits. Costs are justified by the need for specialized blockchain skills and industry-standard compensation. Efficiency is ensured by leveraging the expertise of the MuesliSwap team and making the DEX open-source, benefiting the community and fostering development. Investments in community engagement support platform alignment with user needs. Long-term, the project enhances trading capabilities, supports DeFi growth, and strengthens the overall utility of the Cardano network.