Last updated 4 months ago
Without tranched lending structures - a foundation of finance - compliant Real World Assets as well as other DeFi functions are impossible. This severely limits the growth of DeFi on Cardano.
This is the total amount allocated to Optim Finance Vaults - DeFi Building Blocks for Cardano. 2 out of 4 milestones are completed.
1/4
Core Vault 'Deposit/ Receipt' Smart Contract Development
Cost: ₳ 30,000
Delivery: Month 1 - Apr 2024
2/4
Front End Development & Private Testnet
Cost: ₳ 30,000
Delivery: Month 2 - May 2024
3/4
Iteration from testnet feedback - UX/UI Improvements + possible feature extensions
Cost: ₳ 20,000
Delivery: Month 3 - Jun 2024
4/4
Updated Vaults Deployment to Public Testnet
Cost: ₳ 20,000
Delivery: Month 4 - Jul 2024
NB: Monthly reporting was deprecated from January 2024 and replaced fully by the Milestones Program framework. Learn more here
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
No dependancies
Open Source, 3 yr Business Source License
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.
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.
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.
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
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/
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
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.