Optim Finance Vaults - DeFi Building Blocks for Cardano

[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)

Optim Vaults provide an on-chain tranche structure that enables users to deposit CNTs and structure junior and senior tranches, deposit and withdraw windows, collateral, and interest for each tranche

[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, 3 yr Business Source License

[SOLUTION] Please describe your proposed solution.

Our proposed solution addresses the challenge by bringing more advanced financial products to the Cardano DeFi ecosystem. These tranche structures serve as a foundational building block for scalable finance, enabling the slicing and dividing of risks and returns among various participants. By implementing this primitive, Cardano DeFi can expand beyond its current phase of simple products and open the door to more sophisticated offerings.

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

Our solution directly aligns with the aim of Cardano to provide decentralized applications that manage value and aim to “bank the unbanked.” By introducing tranche structures, we enable the ecosystem to thrive and grow, attracting more users and participants to the Cardano community. Moreover, tranche structures also support leverage products for CNTs (Cardano Native Tokens) and empower the utilization of Real World Assets on the Cardano blockchain. This taps into the largest growth opportunity for DeFi over the next 10 years.

The impact of our project on the Cardano ecosystem will be significant. It will not only bring more users to the community but also strengthen the ecosystem through the introduction of more advanced financial products. The availability of tranche structures will solve a key problem by providing the necessary infrastructure for scalable finance. While it is challenging to quantify the exact number of users or transactions that will be achieved within a specific timeframe, we anticipate a substantial increase in adoption and usage shortly after the project completes. This expansion will drive the ecosystem towards its goal of empowering the unbanked population and positioning Cardano as a leader in the DeFi space.

[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?

Milestone 1 entails finalizing code. This step underscores our commitment to code stability and serves as a foundation for the subsequent stages of our project.

Milestone output: completed code in Github

Milestone 2 involves building our front end to allow for users to interact with dApp in a private testnet environment.

Milestone output: functioning private testnet deployment

Milestone 3 integrates feedback from testnet for UX/UI improvement and possible feature additions.

Milestone output: Public feedback complied and updated UX/UI in Figma

Milestone 4 is an updated Vaults dApp deployment, integrating feedback.

Milestone output: updated code and front-end with feedback integrated

A public testnet launch of a refined version of Optim Vaults

[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.

The entirety of the Catalyst funds received will be allocated to cover the expenses associated with finalizing code and getting a front-end working for a private then public testnet deployment.

Software Engineering - finalize smart contracts, refine contracts/add features, build front end

Cost - 100000 ADA

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

The innovation of introducing tranche structures to the Cardano ecosystem is expected to significantly impact the productivity and growth of Cardano in both the short and long term. In the short term, it will attract more users to the platform, increasing engagement and contributing to the overall growth of the ecosystem. Additionally, this will potentially result in a higher volume of transactions, a boost in liquidity, and more stable prices for the native tokens. In the long term, tranche structures can serve as a building block for more sophisticated financial products and attract institutional investors to the platform, increasing the TVL and stabilizing the ecosystem even further.

[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