Optim Finance OUSD - US Dollar Synthetic Stablecoin

[GENERAL] Name and surname of main applicant

Ethan Protas

[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)

10

[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)

OUSD is a multi-collateral, yield-bearing stablecoin integrating the latest advances in stablecoin design. Its primary focus is on peg protection and scalability, with a secondary focus on yield.

[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 dependancies

[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

Open Source, TBD 2 yr Business Source license

[SOLUTION] Please describe your proposed solution.

OUSD is a fully collateralized algorithmic stablecoin backed by mixed collateral.

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

Cardano will benefit tremendously from having a stable stablecoin that can be used for trading and payment. Stablecoins constitute billions of dollars of liquidity across many other DeFi ecosystems. Stablecoins enable RealFi and an entire host of other financial applications.

[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?

Optim Finance has notably achieved a substantial milestone with the successful launch of a functional dApp, achieving top 5 TVL on Cardano. We’ve safely handled nearly 70 million ADA on our dApp in the past year. Our inaugural product, Liquidity Bonds, an innovative addition to the DeFi landscape, distinguishes itself by its uniqueness within the crypto space. This accomplishment underscores the team's capacity for not only conceiving but also effectively implementing groundbreaking DeFi solutions.

The team's ability to introduce novel financial instruments showcases a forward-thinking approach that contributes to the diversification and enrichment of the broader DeFi ecosystem, transcending conventional paradigms.

Critical to Optim Finance's achievements is its strategic alignment with Cardano's unique capabilities. By leveraging the distinct features of the Cardano blockchain, the team has demonstrated not only the conceptualization of pioneering products but also the agile and cost-effective deployment of these solutions. Optim’s track record underscores the team's adeptness at leveraging Cardano's strengths and showcases the efficient delivery of DeFi solutions.

The team's proven ability to innovate, design, and swiftly deploy DeFi products meets the evolving needs of the decentralized finance landscape, solidifying their role as leaders in the ongoing narrative of DeFi innovation.

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

Begin design spec for OUSD and verify with partners and collateral providers (USDM) , yield bearing collateral, and others that systems integrations are appropriate for liquidations and yield passing.

Milestone output: Detailed design spec and Medium article.

Complete design spec for OUSD and verify financial engineering, peg stability, and collateral types.

Milestone output: detailed Gitbook documentation

Verify legal framework for stablecoin issuance and entity for yield pass-through

Milestone output: legal entity and opinions published

Verify OUSD Design and begin code with clear timeline to completion.

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

Ethan Protas- Product lead

Maksymilian Brodowicz/ Zygomeb - Tech lead

Experience - Minswap, MLabs, IOHK

Consistently delivered/shipped high quality DeFi protocols to mainnet

Clear track record of successfully delivering dApps that are widely adopted

Website: https://www.optim.finance/ 

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

Financial Design and Engineering - Design spec, modeling, verification

Cost - 40000 ADA

Documentation, MOUs, legal framework - All detailed documentation, finalized design and models for MOUs with partners, and legal framework for a decentralized stable coin backed partially with real world yield-bearing assets

Cost - 40000 ADA

Marketing - Design, content creation, promotion to give community clarity and confidence in financial design, benefits, and legal stack

Cost - 20000 ADA

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

The Cardano ecosystem would benefit in innumerable ways from a scalable, strongly pegged stablecoin. The value for cost is tremendous considering the teams track record and the critical role of quality USD stablecoins play in any DeFi ecosystem.

[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