KALYX.IO - The Leveraged dCFD Contracts Platform on Cardano

[GENERAL] Name and surname of main applicant

Miroslav Hons

[GENERAL] Email address of main applicant

miroslavhons@gmail.com

Additional applicants

Igor Jerkic (jerkici@gmail.com)

[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] 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?

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.”

Open-sourced items

We will open-source our smart-contract code written in OpShin. The version 1.0 will be able to make and take the dCFD contract and will be equipped with a developer guide. Github link for version 1.0 will be available by November 15th 2023.

Not OpenSourced items

"Front-End" and "Back-End for Front-End" of KALYX.IO are descoped from the open-source, as they fulfil only the purpose of user connector with desired OpenSource component.

[METADATA] Category of proposal

dApp

[METADATA] SDG rating

GOAL 10 - realisation of this proposal will allow ADA holders to invest and/or hedge their current investments. KALYX.IO connects parties around The World. Our unique technical solution breaks borders of inequality and works in a fully transparent and community-supporting mode.

Total Value Locked (TVL) is not under management of any individual, as well as the Settlements from ended contracts. Mentioned critical operations are calculated and automated ON-CHAIN.

[IMPACT] Please describe your proposed solution.

TEASER

KALYX.IO IS ALREADY ON PUBLIC TESTNET, SO TRY US BEFORE YOU JUDGE US.

⇨  KALYX.IO ⇦ 

SOLUTION PROPOSAL

Creation of smart-contracts, their updates and operations with contract redeemers, are technical master pieces in terms of stability and scalability, thank to transaction transfers on lower levels of Cardano blockchain. However, operations over smart-contracts, their creation and execution of customised workflows are still technically and knowledge-wise expensive activities. KALYX.IO brings a solution, containing just 3-steps for contract creator (user role: maker) and 2-steps contract acceptance by the counter-party (user role: taker).

Having in mind the intuitive user interaction in a decision making and review of Transactions History on one place, gives our solution the right parameters for broad user onboarding, allowing them to transact their dCFDs (decentralised contracts for future difference) in our dApp.

KALYX.IO has been optimised to offer minimal transaction fees for creating and updating a smart-contract with redeemers. Performance and usability were main factors in bringing a dCFD solution to the public.

Spot prices of traiding pairs for contracts creation and settlements are taken from the leading CEXes to assure investors protection against liquidity insufficiencies on smaller and less reputable exchanges.

The smart-contract component is being managed via OpShin (Python Interface). There are 2 ways of interaction with the contract, first is via dApp component (tailored for KALYX.IO) and second is the CLI component that allows trigger the contract for general actions (future API extension for 3rd parties). We use Ogmios to deliver and update contract with redeemers on the Cardano Blockchain, ref. following figure of simplified contract architecture:

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

Instead of detailed theory about expected benefit, we bring you following personas, incl. (but not limited to) 3 situational use cases.

USER PERSONAS & SITUATIONAL USE CASES

BOB (contract maker) - Bob is a self-made trader, he is aware of opportunities and risks with trading crypto-currency on CEXes and he also invests cca 20% of his crypto-assets on DEXes as liquidity provider.

ALICE (contract taker) - Alice is a business woman, who from time to time decides to invest in crypto-assets.

Situation 1 - Investment

Bob has spotted a 25% dump in ADA price. In expectations of the price correction, Bob goes to KALYX.IO and creates a LONG contract to the current ADA/BUSD exchange rate with duration 8hrs. Alice just checked a significant ADA inflow to the CEX and she expects a majority of ADA sellers to trade within next 4-8 hours. She goes to KALYX.IO, checks available contracts and finds out that there is a contract (counterparty to Bob) to SHORT a 100 ADA/BUSD position and she takes the contract. Contract is settled after 8 hours of Bob's interaction => Alice, as the contract winner, receives TVL of 200 ADA to her wallet and her transaction is marked as winning.

Situation 2 - Hedge

Alice bought 1000 ADA on the CEX spot market with an expectation of fast flip in next 8 hours. To protect this decision, she goes to KALYX.IO and takes already available SHORT contract worth of 100 ADA. If her spot investment is successful, her gain is reduced by 100 ADA loss from the SHORT contract. If her spot estimate was wrong, she will cover her CEX losses with extra 100 ADA incoming from the SHORT contract.

Situation 3 - Bet

Bob and Alice meet in pub. They start to talk the near-future price of ADA/BUSD rate and both are in a disagreement. To pepper the situation up, they decide to open a quick 30min contract on KALYX.IO to see who was right. They make/take the contract on their phones (KALYX.IO is iOS and Android friendly). Each of them will need cca 30 seconds to make and take the contract. Next, they wait till contract ending time ti find out who was right.

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

Operational KPIs by 01/2024

1. Contract Pairs, eq. to posted contracts

• < 10 / day - niche interest
• < 50 / day - small interest
• < 250 / day - medium interest
• = > 250 / day - high interest
• = > 1000 / day - very high interest

1. Service Availability
2. 99% - minimum availability
3. 99.5% - standart availability
4. 99.9%+ - high availability

Adoption KPI - #No. of KALYX.IO GitHub forks by 01/2024

a < 20 - solution is not interested enough for the Cardano community

a < 50 - niche interest

a < 70 - small interest

a < 90 - medium interest

a < 125 - high interest

a = > 125 - very high interest

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

DEV & TEST - 03/2023 - 07/2023

PUBLIC TESTNET (PreProd) - 07/2023 - 10/2023

MAINNET LAUNCH - 10/2023 - 11/2023

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

We have already significantly progressed with MVP. Hop to https://kalyx.io and make / take contract with test ADA.

We are a team of highly competent people with specialisations in IT infrastructure, security, smart-contract development + integrations and web-app development.

When funded, we will provide:

1. policy ID (code version) and smart-contract code hash with every emitted contract for unquestionable traceability and reconstruction of historical events,
2. business-case related metadata with every emitted + updated contracts (meta-data from contracts and redeemers),
3. we will build mechanisms robust enough to minimise the attack radius of look-alike contracts created by fraudsters; protection of users of our service is the primary objective and we are heavily invested in this approach,
4. smart-contract audit for every major version of the contract code + transparency of workflows and contract steps from the public contract repository on GitHub .

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

Our main objectives are:

1. Deliver user-friendly dApp that allows users interact with dCFD contracts under 40 seconds (maker) and 25 seconds (taker) - MVP ready ✓
2. Interact with Available contracts on the Cardano blockchain - MVP ready ✓
3. Display Transaction History for users, giving the overview of won, lost, drew, expired and cancelled contracts - MVP ready ✓
4. Automated TVL redemption from the contract to user wallet - MVP ready ✓
5. Keep users informed about currently open contracts via social media, subscriptions and notification channels (notification generators from the kalyx.io BE)

[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.

Q2 2023 - DEV

• Deliver functional prototype that will allow to make/take contract
• Interface - FE, BFF, PO
• DONE ✓

Q3 2023 - PUBLIC TESTNET

• Public engagement in trying and testing our solution
• Community interaction on bug-fixing and improvements
• DONE ✓

Q4 2023 - GO LIVE

• Mainnet deploy and roll-out of contract version 1.0.x
• Hyper-care - contract, FE, BE, BFF, infra & security optimisation

Q1 2024 - COMPLETE PRODUCT

Roll-out of revitalised UX and contract version 1.y.z

• Collision management and exceptions in the smart-contract
• More details in contract meta-data and transaction history
• New wallets integration
• CIPs compliance review and report
• Smart-contract audit

Stretch objective (not committed) Q1 2024

• Roll-out of DEX connector with API for contract taking / making via 3rd party
• Emission of the "bump&dump protected" governance tokens via "T Minus One" platform (optimised token launch, vesting and distribution)

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

Q2 2023 - DEV

• Development of e-2-e capabilities and integrations between solution components (on-chain, off-chain)
• Smart-contract prototype with local parameters for push through workflows
• => both outcomes were already delivered

Q3 2023 - PUBLIC TESTNET

• Test E-2-E system behaviour on testnet pre-prod
• Granted access to users with "test-wallets"
• Collection of feedbacks and "voice of the customer" impulses
• => this is currently in progress

Q4 2023 - GO LIVE

• Roll-out on Cardano MAINNET, incl. dApp support for phones and tables
• Intensive channels communication and users support

Q1 2024 - COMPLETE PRODUCT

• Smart-contract doesn't work only in "happy case", but is more robust and autonomous in overcoming issue
• Complete set of transaction / contract metadata allows to reconstruct dCFD events

Stretch objective (not committed) Q1 2024

• DEX registration stage
• other 3rd party integration to KALYX dCFD platform

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

TOTAL BUDGET ESTIMATED ~ 85000 ADA; TOTAL BUDGET REQUIRED = 75000 ADA

Both applicants refrain from charging any wage, compensations nor additional remuneration. Amount of cca. 35000 ADA has been already invested by applicants from their private sources.

Funding of KALYX.IO is based on strict rules:

• NO TOKEN FUNDING
• NO ISPO
• Catalyst proposal is our currently only mean of external funding

=> WE BUILD, NOT WAITING FOR THE FUNDING AND WE HOPE YOU FIND IT BENEFICIAL

Budget is structured around provided time-line and splits into 3 main parts:

DEV & TEST

HW 3500 ADA

Domain 1200 ADA

User-app hosting 680 ADA

License SDK 2000 ADA

DEV UX 2300 ADA

DEV Front-End 13500 ADA

DEV Smart Contract 18900 ADA

DEV Back-End 12400 ADA

Integrations and UX Updates 4600 ADA

PUBLIC TESTNET (PreProd)

User Testing 300 ADA

Bug Bounty 500 ADA

Fixes and Updates 600 ADA

Campaigns Twitter / Discord / Reddit 2500 ADA

MAINNET LAUNCH

Code modifications and pre-audit review 2000 ADA

Smart-Contract audit (certik or similar) 4370 ADA

Roll-out & HyperCare 3100 ADA

Campaigns Twitter / Discord / Reddit / Youtube 8000 ADA

Maintenance 12months 4800 ADA

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

Service of kalyx.io is planned to be operational min. till 10/2025. By then, we roughly expect to emit 100 000 contracts. Catalyst funding in such expected scale will represent a development coverage with a unit cost 0.75 ADA per contract.

With received funding we pledge to:

1. Open-source the version 1.0 of the smart-contract by 12/2023
2. Keep the kalyx.io service operational by min. 10/2025
3. Reduce the barrier of entry for each ADA holder to the bare minimum when using dCFDs (owner of the Cardano Wallet, holder of min. 15 ADA)

[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