Cardano's Decentralized Exchange Marketplace for Bonds, Securities and financial products

[GENERAL] Name and surname of main applicant

Mai Thanh Binh

[GENERAL] Email address of main applicant

mai.thanh.binh@gmail.com

Additional applicants

Nguyen Thi An

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

9

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

No

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

Yes

[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.” .

Aiken

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

No

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

The offchain code will not be open source.

All smart contract will be open source!

[METADATA] Category of Proposal

DeFi

[METADATA] SDG rating

8 - Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

[IMPACT] Please describe your proposed solution.

Danogo is the first bond trading platform with built-in bond pricing on-chain written in open-source smart contracts, scalably unlocking liquidity for bondholders. As part of our roadmap, we plan to utilise the market-making protocol to allow traders to execute multiple market-making strategies for bonds in parallel, using UTXO design to execute large transaction volumes in parallel at scale.

Next steps, Danogo will expand to build a DeX token swap platform that aims to

• Increase liquidity without requiring User Liquidity pool, 
• Model swap rates based on current financial institutions. 

By leveraging UTXO design, we create an off-chain algorithm to redistribute utxo based on user market making strategy before submitting onchain, once submitted onchain, the utxo can be traded in parallel with each other, each utxo will be governed by open source smart contract allowing public to verify a simple trading rules, while allow professional traders to build specific and private trading strategies offchain.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Danogo is committed to empowering the Cardano Ecosystem by promoting liquidity, transparency, and improved trading experiences. Our financial tools aim to attract more investors to join Cardano, thereby increasing the number of mass users and supporting Cardano’s Ada value. This is crucial to the Cardano community and promotes the development of more utilities in Cardano.

Optim bond is a RISK FREE investment for users who hold Ada long term to get higher yield than staking, so wide adoption of Optim Bond will help Cardano ecosystem since it encourage users to hold Ada for longer period of time. Danogo create liquidity for Optim Bond which will improve adaption of Optim bond.

[IMPACT] How do you intend to measure the success of your project?

Number of monthly transactions & trading volume on the platform!

[IMPACT] Please describe your plans to share the outputs and results of your project?

Communication Channels;

Danogo will utilise our website and social media channels like Twitter to consistently update the community on our milestones and progress. We aim to foster transparency and inclusivity and keep the Cardano community engaged and connected. We have also integrated a timeline on our website to represent our progress visually. 

• Twitter will be the best platform to keep updated with our progress. Once any updates on our platform, they will be published on Twitter

Open-source Commitment:

Danogo is committed to open-source smart contracts and will release them for public access. This will enable developers and researchers to build on our work and contribute to further research and development activities. We invite the Cardano community to help identify bugs and appreciate code review and contribution.

Our transactions volume will be on chain and publicly verifiable by all.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

We're proud to release our DeX bond trading platform, enabling seamless trading of Optim Finance Bonds. Our proven track record of successful project delivery and adherence to timelines instil trust in our ability to deliver results.

• 4 months to release on TestNet followed by a 1-month main net release, 
• The release of a minimum viable product (MVP) underscores our commitment to transparency, accountability, and building trust with our stakeholders.

We are experience Web 2 developers, and only found out about Optim Bond in December 2023, learnt Aiken in February and we were able to release to Mainnet without ever meeting the Optim team even!

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

Main Goals

-Leverage UTXO Advantage of Cardano: 

• Leverage the unique Unspent Transaction Output (UTXO) model of the Cardano blockchain. 
• Develop a bond trading platform with built-in bond pricing on-chain while using open-source smart contracts.

-Acquire Users/Marketing for the First Bond Trading Platform

• Acquire users and implement effective marketing strategies to promote the first bond trading platform built on Cardano. 

To validate the feasibility of these goals, 

-Technical Implementation: 

• Conduct thorough research and analysis of Cardano's capabilities and UTXO model. This could involve collaborating and engaging with the Cardano community.

-User Acquisition and Marketing: Implement a comprehensive user acquisition strategy to attract users to the bond trading platform and monitor the trading volume of the Danogo exchange platform and set a specific target to 

• Capture 10% of the monthly market volume of ADA bonds.
• Adjust marketing strategies and platform features based on market response and user feedback.
• Conducting targeted marketing campaigns, leveraging social media platforms, and engaging in community outreach. 
• Measure the success of the marketing efforts by tracking user registrations, platform usage, and user feedback.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Q3 2023: User acquisition and continue to improve the Danogo bond trading platform, 

• Educating users on the key advantage of built-in bond pricing on-chain written in open source smart contract, reducing bond operational costs.

Q4 2023: Release market-making protocol

•  Allow traders to execute multiple market-making strategies for bonds in parallel, highlighting the advantage of the UTXO design to execute large transaction volumes in parallel at scale.

Q1 2024: Release Danogo DeX token swap platform. 

• By leveraging the best practices of current financial institutions, Danogo's swap rates can be modelled without the need for a user liquidity pool.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

1. Support all new bond TYPES released on Cardano within 2 weeks after each bond type release
2. Create training material for users to learn about bond pricing, incentive for bond trading so to encourage retail users to participate in more bond investment, which is risk free as long as you have long term view on holding Ada. Intended outcome is to have more unique holders of Optim Bond.
3. Release market making protocol to allow any trader to deploy market making strategy, intended outcome will be all bond duration have tight bid-ask range so that we have an efficient marketplace.
4. With DeX aggregator, we allow trader to execute multiple trade in parallel on different DeXes to help traders maximize return, intended outcome is to have more transactions on Cardano!

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

• User training material & incentive on Bond and Bond trading: 50,000 ADA
• Developers rewards for opensource contribution & review + audit code: 100,000 ADA
• Market Making Development & Testing, training traders to use Market Making Protocol: 350,000 ADA

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

Proven Track Record: Danogo has a proven track record of utilizing funds efficiently and delivering innovative products, as evidenced by the successful launch of the DeX bond platform from scratch. The team's commitment to maximizing the value of allocated resources is reflected in our existing products. We have invested a few hundred thousands USD in terms of salary cost as well as setup infrastructure to develop on Cardano and delivered mainnet product within 6 months!

The fund we have requested represents value for money for the following reasons:

• Our team has shown exceptional capabilities by only taking 4 months for release on the Testnet, 
• Followed by a one-month release on the mainnet. 

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept