LENDEX Cardano <-> EVM Token Lending Protocol

[GENERAL] Name and surname of main applicant

Leobel Izquierdo

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

Entity (Not 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'll make a secure and smooth platform based on smart contracts and oracles to bring people from EVM blockchains to Cardano providing them access to ADA liquidity for their assets.

[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] Please provide here more information on the open source status of your project outputs

Our decision to maintain the project outputs as closed source is driven by our commercialization strategy. By keeping the source code proprietary, we aim to leverage licensing and other revenue streams to support the project's sustainability and continued development. This approach allows us to balance innovation and business objectives while delivering value to our users.

[SOLUTION] Please describe your proposed solution.

Perception of the Problem:

The problem we aim to address lies in the limited liquidity for EVM users on the Cardano blockchain. Transitioning assets seamlessly is challenging, and I see an opportunity to provide a solution that enables EVM users to leverage their NFTs/FTs as collateral for obtaining liquidity through a time-limited loan.

Approach Rationale:

Our approach involves incorporating smart contracts and oracles on both EVM and Cardano. This choice ensures interoperability, allowing users to tap into the unique features of both blockchains. By integrating these technologies, I aim to create a robust and efficient lending platform that bridges the liquidity gap between the EVM and Cardano ecosystems.

Project Engagement:

The project will engage EVM users seeking liquidity and willingness to collateralize their NFTs/FTs for loans. Additionally, participants in the broader decentralized finance (DeFi) space, including developers, liquidity providers, and stakeholders in both the EVM and Cardano communities, will play a crucial role in the project's success.

Demonstrating Impact:

The impact of the project will be demonstrated through measurable outcomes, such as increased liquidity flow between EVM and Cardano, successful loan transactions, and positive feedback from users. Tracking metrics like loan volume, collateral utilization, and user engagement will provide tangible evidence of the project's effectiveness.

Solution Uniqueness and Importance to Cardano:

The uniqueness of the solution lies in its cross-chain approach, enabling EVM users to unlock liquidity on Cardano by collateralizing their assets. This not only benefits EVM users seeking liquidity but also contributes to Cardano's ecosystem growth by attracting a new user base and fostering inter-blockchain synergy. The importance to Cardano lies in establishing itself as a hub for cross-chain DeFi activities, enhancing its overall utility and attractiveness within the broader blockchain landscape.

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

Positive Impact:

Addressing the limited liquidity for EVM users on the Cardano blockchain presents a transformative opportunity. By enabling EVM users to utilize their NFTs/FTs as collateral for time-limited loans, our solution stands to revolutionize the financial landscape.

Approach Rationale:

Incorporating smart contracts and oracles across both EVM and Cardano is a strategic move towards creating an interoperable lending platform. This approach not only ensures seamless transactions but also harnesses the distinctive strengths of both blockchains. The result is a robust, efficient solution that successfully bridges the liquidity gap between the EVM and Cardano ecosystems.

Project Engagement:

Our project engages a diverse community, including EVM users seeking liquidity, developers, liquidity providers, and stakeholders in the DeFi space. This inclusive approach fosters collaboration, creating a network effect that is pivotal to the success of the lending platform within both the EVM and Cardano communities.

Demonstrating Impact:

Measuring success through tangible outcomes is integral to our project. Increased liquidity flow between EVM and Cardano, successful loan transactions, and positive user feedback are the key metrics that will showcase the project's effectiveness. The tracking of loan volume, collateral utilization, and user engagement ensures a comprehensive demonstration of the project's impact.

Solution Uniqueness and Importance to Cardano:

The cross-chain approach, unlocking liquidity on Cardano for EVM users, is what sets our solution apart. Beyond addressing individual liquidity needs, this unique approach contributes significantly to Cardano's ecosystem growth. It attracts a new user base, fostering inter-blockchain synergy and positioning Cardano as a central hub for cross-chain DeFi activities. This not only enhances Cardano's utility but also elevates its appeal within the broader blockchain landscape, marking a positive and influential impact on the entire ecosystem.

[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?

I've co-founded Tangocrypto Software as a Service (https://www.tangocrypto.com) providing a Cardano API for blockchain data and NFT minting (which was the result of catalyst funds received during iteration 6 and 8). Started the development of cardano-wallet-js (https://github.com/tango-crypto/cardano-wallet-js) and operate the stake pool TANGO. I have also support some of the most important projects on Cardano right now like GGMC main NFTs collection and their B2B Kingdom Trust initiative (based on dynamic NFTs).

I have developed a minting service designed to seamlessly scale and accommodate a substantial influx of thousands of buyers per second. I possesses extensive expertise in building scalable systems that empower decentralized networks.

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

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

Co-Founder TangoCrypto & Sr Software Engineer: Leobel Izquierdo

Software Engineer with a Bachelor's Degree in Computer Science and over 10 years of experience in the Software Industry. Working for the past 3 years with blockchain technologies like Ripple, Ethereum and Cardano. 

Linkedin: https://www.linkedin.com/in/leobelizquierdo

Email: leobelizquierdo@gmail.com

Github: https://github.com/leobel

Twitter: https://twitter.com/leobelizquierdo

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

Milestone 1: Protocol Proof of Concept - 10k ADA

• Allocated Budget: 10,000 ADA
• USD Equivalent: 10,000 ADA * $0.45 = $4,500 USD
• Total Hours for Milestone 1: 100 hours

Milestone 2: Lend with Collateral Creation - 40k ADA

• Allocated Budget: 40,000 ADA
• USD Equivalent: 40,000 ADA * $0.45 = $18,000 USD
• Total Hours for Milestone 2: 400 hours

Milestone 3: Product Development - 35k ADA

• Allocated Budget: 35,000 ADA
• USD Equivalent: 35,000 ADA * $0.45 = $15,750 USD
• Total Hours for Milestone 3: 350 hours

Milestone 4: Integration Test - 10k ADA

• Allocated Budget: 10,000 ADA
• USD Equivalent: 10,000 ADA * $0.45 = $4,500 USD
• Total Hours for Milestone 4: 100 hours

Milestone 5: Marketing and Ongoing Support - 5k ADA

• Allocated Budget: 5,000 ADA
• USD Equivalent: 5,000 ADA * $0.45 = $2,250 USD
• Total Hours for Milestone 5: 50 hours

Summary

• Total ADA Across All Milestones: 100,000 ADA
• Equivalent Total in USD: ≈ $45,000 USD
• Fixed Hourly Rate: $45 USD/hour
• Total Hours Across All Milestones: 1,000 hours

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

The cost of the project is a strategic investment that reflects its substantial value for the Cardano ecosystem. By addressing the critical issue of limited liquidity for EVM users, the project aims to unlock new opportunities and foster cross-chain collaboration. The expenses associated with skilled development, rigorous testing, community engagement, and marketing are justified by the potential long-term benefits.

The development cost ensures the creation of a robust lending platform, integrating smart contracts and oracles for seamless cross-chain transactions. This investment is essential for establishing a reliable and user-friendly solution that directly contributes to addressing a pressing problem within the ecosystem.

Engagement with the Cardano and EVM communities is pivotal for success, justifying costs allocated to community involvement. This ensures the platform aligns with user expectations and fosters a collaborative ecosystem. Marketing costs are integral to attracting a diverse user base, further enhancing the platform's utility and impact.

In conclusion, the project's costs are aligned with industry standards and represent a strategic investment in building a sustainable and innovative solution. The value for money lies in the positive impact on liquidity flow, successful transactions, and overall growth of the Cardano ecosystem as a prominent hub for cross-chain DeFi activities. The potential benefits far outweigh the costs, making it a prudent and value-driven investment for the Cardano community.

[IMPORTANT NOTE] The Applicant agrees to Fund 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