VYFI: Open Source Cross-chain Liquidity Provision to Cardano

[GENERAL] Name and surname of main applicant

Steven Ward

[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)

6

[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 build an open-sourced cross-chain liquidity provision platform, allowing users to select two tokens on an EVM chain, and provide them as liquidity to Cardano.

[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

https://www.gnu.org/licenses/gpl-3.0.html

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

As we experience growth through the upcoming cycle, users will naturally be drawn to the networks that allow access to the most interesting and varied trading experience.

We, as the builders on Cardano, have the unique opportunity to ensure that we are able to provide those investment strategies to our core user base. 

The most straightforward way to achieve this is to construct a system that allows for the provision of major tokens from multiple blockchains, directly to liquidity on Cardano. 

This will give users on our chain the freedom to partake in investment opportunities that exist on other blockchains outside our own. If supported by DEx’s on Cardano, this system could allow for the provision of farming rewards and incentivization for tokens that exist across other blockchains.

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

This service is essential for growth on the Cardano Blockchain. Here we will discuss some, but certainly not all of the possible advantages to this system. 

Defi Liquidity

We will be allowing access to more tokens, with a user base outside of our own traditional Cardano Market. If properly incentivized, this is an opportunity to not only grow our total Defi liquidity, but also grow our user base by introducing liquidity providers from other blockchains to the Cardano Ecosystem.

Blockchain Volume

One of the limiting factors on the Cardano Blockchain is the total volume traded daily. This number is in large part hampered by the difficulty of accessing classically traded tokens within our industry; such as BTC, ETH, BNB, SOL, XRP, etc. 

These tokens with very large volumes are currently omitted from our chain, resulting in a reduced opportunity for arbitrage based on the price fluctuations of the wider crypto market. If we are able to build liquidity for these tokens that are highly traded, we will naturally be able to grow our total trading volume on the Cardano chain. 

Ecosystem Interoperability

The future of blockchain is trending towards the concept of cross-chain interoperability. The current narrative within the blockchain developer community echoes this sentiment, as there is no single blockchain that solves every engineering problem. Cross-chain liquidity provision exists between many EVM chains, allowing for platforms - such as pancakeswap and sushiswap to simultaneously allow users to provide liquidity from separate originating chains. 

Access to this interoperability works in favor of all of the builders on our chain, as the open sourced nature of the tool will allow for integration of this system alongside other dapps to build greater access between Cardano and other EVM chains.

[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?

Funds

We are a registered business in Australia, with our registration under International Markets, ABN: 84 649 719 433

Abn lookup: https://abr.business.gov.au/ABN/View?abn=84649719433

Project Visibility and Community Engagement 

The VyFinance team has attended (and will continue to attend) each major Cardano event in the community, including: 

• Rare Bloom 2022 
• CNFTcon 2022
• NFTxLV 2023
• Rare Evo 2023 
• Rare Evo 2024
• Cardano Summit 2022
• Cardano Summit 2023
• Cardano Summit 2024

Here we have been able to build confidence with the ecosystem and create relationships with many projects and leading community members.

We have also had the honor of being awarded/nominated for multiple accolades within the blockchain. This includes:

CNFT award - “Best Long-Term Utility” - Winner

Rare Evo Award - “Best DeFi” - Winner

Cardano Summit - “DeFi Category” - Nominated

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

On-Chain Code

This includes the smart contracts and data handling required on chain. 

This is the core of the product, and will provide the primary utilities of the Cross-chain liquidity provision. 

The deliverable will be our Milestone 3: test-net. Users will be able to engage with the smart contracts upon the launch of our testnet. This period will be crucial if the functionality meets the communities expectations.

Off-Chain code

This involves many crucial aspects of the product. Including, but not limited to: data query servers, data based handling and transaction construction.

The principal deliverable will be  Milestone 3: testnet, where our off-chain code will be working synchronously to achieve the final product.

Test-net

Once the first two milestones are completed, we will be able to launch our test-net. Users will be able to engage with the product and we will be able to test the functionalities of the system. 

The success of this milestone will be user feedback, which will allow us to optimize prior to launch. 

Audit

The audit is crucial for ensuring the safety of the smart contracts prior to launch. 

The deliverable for this milestone will be a public release of the audit of our smart contracts.

Video

We regularly engage with the Cardano community, and have released over 150 videos that can be found on youtube. We will continue releasing content regarding the auto-harvester through until launch. We will continue to  share our progress with our combined community through the various social media platforms.

Final Project Completion Report

We will release regular updates about the progress of the product through Medium. We currently release a monthly update to engage the community in the process and progress of these new products. This will include technical reports, alongside more general product updates. 

We also have a Trello, which is live. Where the live progress of current tasks can be viewed. This is available to be viewed at all times.

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

Steven Ward - CEO

Dylan McCoy - COO

Deann Zois - CMO

Ryan Felt - CTO

Jon Hendrickson - CRO

Nick Cappiello - CCO

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

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

By giving access to tokens that traders want to trade, we will be growing our capacity to find and retain new users to our chain. 

This results in a net growth of liquidity and volume seen on chain, through the application of interoperability between Cardano and other major players within our industry. At its core, this proposal is looking to set our chain up with the trading capacity needed for the next phase of growth within our space.