Stargazer: DeFi Yield Optimizer for Cardano

[GENERAL] Name and surname of main applicant

Christoph Waffler

[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)

Stargazer, a smart Yield Optimizer on Cardano, automates yield reinvestment to significantly increase returns, outperforming individual efforts and eliminating the hassle of manual DeFi monitoring.

[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

The smart contracts will be fully open source for verification and trust reasons after a successful full audit of our on-chain and off-chain code.

The back-end and front-end code, which contains essential intellectual property and is not relevant to public auditability, will be closed source.

[SOLUTION] Please describe your proposed solution.

Problem Perception:

Despite its considerable potential, the complexity and associated risks of DeFi are barriers preventing many potential investors from fully engaging with its offerings.

For more context, yield farming is a process where users provide liquidity to DeFi protocols in exchange for rewards, usually in the form of tokens. However, this process requires constant monitoring and strategic reinvestment which is costly because of e.g., daily transaction fees. The overall goal — which is to maximize returns — is fraught with risks, such as volatile loss and potential smart contract failures. These challenges often deter inexperienced users and those without a deep understanding of DeFi mechanics, limiting the proliferation and adoption of DeFi services.

Approach:

Our submitted solution, Stargazer, is an AI-driven Yield Optimizer (= Yield Aggregator) designed specifically for the Cardano DeFi ecosystem. We aim to make yield farming more accessible by simplifying and streamlining the process.

By using our products, you will achieve a much higher return on your invested money through efficient reinvesting and more safety through diversification across multiple dApps. These will include such as the most popular DEXes (e.g., Minswap or Mueliswap) and lending protocols (e.g., LenFi).

This means that Stargazer has the following capabilities:

• By bundling all users’ transactions, reinvesting the reward token costs fewer transaction fees.
• In addition, the daily reinvestment generates a high compound interest.
• Through the use of AI, users (1) will also be informed about the risks associated with each yield strategy and (2) will be able to choose between low-risk/low-return and high-risk/high-reward strategies using the AI.

Engagement:

Stargazer targets both current DeFi users who are looking for improved yield optimization strategies and newcomers who have been discouraged by the complexities of yield farming. By making DeFi more accessible, we hope to broaden its user base, thereby promoting Cardano as a DeFi platform.

Demonstrating Impact:

Our impact will be demonstrated by closely monitoring and sharing key metrics such as the total value locked (TVL) in Stargazer, the number of active users, and the returns generated for our users. These metrics will serve as clear indicators of Stargazer's positive influence on the Cardano ecosystem.

Unique Features and Benefits:

Stargazer stands out from other Yield Optimizers through the integration of AI technology and risk diversification strategies. This combination will benefit both existing DeFi users seeking better yield optimization and newcomers attracted by a simplified yield farming experience. Increasing the DeFi user base is pivotal for stimulating growth and innovation in the Cardano ecosystem.

Importance to Cardano:

Stargazer plays a crucial role in the Cardano ecosystem as it fills a significant gap. While Cardano shines in scalability and security, its DeFi ecosystem is less developed compared to other blockchains. Stargazer, with its user-friendly interface and accessibility, will contribute to the maturation of Cardano's DeFi space, attracting more liquidity and fostering innovation.

Ongoing Engagement & Progress Transparency:

To maintain commitment and provide clear evidence of progress, we plan to release functional prototypes frequently, allowing users to interact with intermediate results. This will create an engaging growth journey and provide insights for continuous improvement. Furthermore, we will share updates and release results on the preproduction testnet as soon as they become available, allowing the public to assess our progress.

We are committed to contributing to the evolution of DeFi on Cardano and are excited about the transformative potential that Stargazer brings to the community.

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

Stargazer, as a pioneering yield aggregator on the Cardano blockchain, aims to deliver significant value to the Cardano community by simplifying and enhancing the yield farming experience. Our project's impact can be broadly categorized and measured as follows:

Value to the Cardano Community:

• Simplification of DeFi Practices: By streamlining the process of yield farming, Stargazer will make DeFi more accessible to a broader audience, including those new to crypto investments. This accessibility is crucial for expanding the user base of the Cardano ecosystem.
• Enhanced DeFi Security and Transparency: By focusing on transparent, AI-driven investment strategies and prioritizing security, Stargazer will boost trust and reliability in Cardano's DeFi landscape, attracting more users and investors to the platform.

Measuring Impact:

• User Growth and Engagement Metrics: We will track the number of new users engaging with Stargazer, particularly those new to DeFi, as a direct measure of our success in making DeFi more accessible.
• Community Feedback and Surveys: Regular surveys and feedback sessions with our users will help assess the perceived ease of use and trust in our platform, providing qualitative insights into our impact.
• Partnership and Integration Milestones: Collaborations with other Cardano-based projects and the successful integration of Stargazer with major DEXes will serve as key indicators of our growing influence within the Cardano ecosystem.

Sharing Outputs and Opportunities:

• Community Engagement: We will actively engage with the Cardano community through forums, social media (especially Twitter and Discord), and AMA sessions to share updates, gather feedback, and foster a sense of collaboration.
• Open Source Contributions: Stargazer is committed to the ethos of open-source development, a commitment already demonstrated through our contributions to projects like MeshJS SDK and Opshin. Wherever feasible, we will continue to contribute to the open-source community by sharing our learnings and potentially some parts of our codebase. This practice not only encourages innovation but also drives collective growth within the Cardano ecosystem.
• Educational Content and Workshops: In line with our goal to demystify DeFi and yield farming, we plan to organize educational content and workshops. These sessions will focus on sharing knowledge about yield farming, DeFi strategies, and the utility of platforms like MeshJS SDK and Opshin, thereby empowering the community with both theoretical and practical skills.

In conclusion, Stargazer's success will not only be measured by its direct user metrics but also by the broader impact it has on making DeFi more accessible, secure, and user-friendly within the Cardano community. By sharing our journey and learnings, we aim to foster a more robust, inclusive, and collaborative DeFi environment on the Cardano blockchain.

[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?

Our ability to deliver Stargazer with a high degree of trust and accountability stems from a combination of our team's expertise, strategic planning, and commitment to transparency and community engagement. Below is an outline of our capabilities and our approach to validating the feasibility of Stargazer.

Team's Expertise and Experience:

• Technical Proficiency: Our team, led by Christoph Waffler, a Computer Science expert with extensive experience in blockchain technology, is equipped to tackle the technical challenges of developing a yield aggregator on the Cardano platform.
• Future Expansion of Team: We anticipate the addition of a Chief Marketing Officer (CMO) with substantial experience in business development and marketing within the blockchain and DeFi sectors. This role will be crucial in driving Stargazer's market presence and user adoption.

Strategic Approach to Project Management:

• Phased Development: We are adopting a phased approach to development, starting with the conceptualization and followed by the MVP development and testing phases, ensuring that each stage is completed with diligence and efficiency.
• Community Feedback Integration: Regular feedback from the Cardano community will be a cornerstone of our development process, ensuring that we stay aligned with user needs and expectations.

Ensuring Feasibility and Accountability:

• Regular Reporting and Transparency: We commit to maintaining transparency with the community, providing regular updates on our progress, challenges, and financial expenditures. This will be done through our social media channels and community forums.
• Financial Management Protocols: We will implement strict financial management protocols, ensuring that all funds are allocated and used judiciously. This will include detailed budgeting and regular financial reporting to stakeholders.
• Third-Party Audits and Reviews: To validate the technical feasibility and security of our platform, we will engage with reputable third-party auditors for regular reviews of our smart contracts and security protocols.

Validation of Approach:

• Prototype Testing and Iteration: Through iterative development and testing of our prototype on the Cardano testnet, we will validate the technical feasibility and user experience of Stargazer.
• Market and User Research: Ongoing market research and user testing sessions will help us to refine our product, ensuring it meets the needs of our target audience and aligns with current market trends.

In conclusion, our team's technical expertise, combined with a strategic approach to development and a commitment to transparency and community engagement, positions us well to deliver Stargazer with high levels of trust and accountability. Our processes and plans are designed to ensure that every step we take is feasible, responsible, and in line with our community's expectations and needs.

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

Q4 2023: Initiation Phase

• MVP Development: Development and testing of a minimum viable product (MVP) on the Cardano testnet. This includes the integration of at least one liquidity pool (LP), such as MIN/ADA, on one decentralized exchange (DEX) with automated reinvesting functionality.
• Acceptance Criteria: Successful deployment and testing of the MVP on the testnet with demonstrable automated reinvestment and user interface functionality.

Q1 2024: Development Enhancement Phase

• Feature Expansion: Enhance the MVP by integrating additional features based on user feedback and test results, such as improved user interface and additional risk assessment tools.
• LP Expansion and Testing: Testing and preparation for the addition of at least two more LPs, ensuring robustness and efficiency of the system.
• Acceptance Criteria: Successful integration and testing of additional features and LPs on the testnet, with positive feedback from initial testers and demonstrable stability in various test scenarios.

Q2 2024: Expansion Phase

• Diversified Yield Farming Preparation: Lay the groundwork for diversified yield farming strategies, including algorithm development and simulation tests for providing liquidity to multiple exchanges.
• Community-Driven Farming Strategies Development: Develop and test farming strategies for token pairs in high demand by the community, such as MILK/ADA.
• Risk Analysis Framework Development: Start developing a comprehensive risk analysis overview for various farming opportunities, enabling users to make informed choices based on their risk tolerance.
• Acceptance Criteria: Effective development and simulation of diversified yield farming strategies, readiness of community-driven strategies for future deployment, and initial framework setup for risk analysis.

Final Project Completion Report and Video Milestone

• Completion Report: A comprehensive report detailing the progress, achievements, challenges, and learnings throughout the project lifecycle.
• Video Presentation: A video presentation showcasing Stargazer's features, user interface, and testimonials from early adopters, highlighting the project's journey and impact on the Cardano DeFi landscape.

In summary, these milestones are strategically designed to guide the development of Stargazer, focusing on robust testing, feature enhancement, and preparation for diversified yield farming on the Cardano blockchain. We aim to evolve Stargazer into a key component in the DeFi landscape on Cardano, ensuring innovative and user-centric solutions with a strong emphasis on community feedback and risk management.

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

Current Team Members:

• Christoph Waffler - Project Lead and Blockchain Expert
• LinkedIn Profile: https://www.linkedin.com/in/christoph-waffler/
• Role: Christoph, with his extensive experience in software development and blockchain technology, will oversee the project's overall development, focusing on blockchain integration and smart contract development.
• Dr. Sothy Kol-Men - Strategic Advisor
• LinkedIn Profile: https://www.linkedin.com/in/dr-kol-men/
• Role: Dr. Kol-Men, a seasoned entrepreneur with expertise in business development and strategy, will provide strategic guidance and insights, particularly in the areas of market positioning and regulatory compliance.

Planned Recruitments:

• Chief Marketing Officer (CMO)
• Skills Sought: Expertise in blockchain and DeFi marketing, strong background in digital marketing strategies, and experience in community building and engagement, especially within the Cardano ecosystem.
• Role: The CMO will be responsible for developing and executing marketing strategies, enhancing community engagement, and increasing Stargazer’s visibility and adoption within the DeFi space.
• UX/UI Designer
• Skills Sought: Proficiency in user experience and user interface design, especially for DeFi platforms, with a keen eye for intuitive design and user-centric interfaces.
• Role: The designer will focus on creating an engaging and easy-to-navigate interface for Stargazer, ensuring the platform is accessible and user-friendly.
• Software Engineer
• Skills Sought: Strong background in software development, with experience in decentralized applications (dApps) and familiarity with the Cardano blockchain environment.
• Role: The engineer will contribute to the development and optimization of Stargazer’s technical infrastructure, ensuring robustness and scalability.

Engagement and Communications:

• Team Engagement: Our team, comprising dedicated professionals with a shared vision for Stargazer, is actively engaged and deeply committed to the project. We conduct regular meetings and collaborative sessions to align on our progress, strategies, and to address any emerging challenges. This ongoing engagement ensures that we are consistently moving forward in a cohesive and coordinated manner.
• Community Involvement: Recognizing the importance of community input and collaboration, we are deeply involved in the Cardano ecosystem's technical groups. I am an active member of several developer-focused Discord servers, including OpShin, Maestro, and MeshJS. These platforms allow us to engage directly with the Cardano community, facilitating valuable exchanges of ideas and feedback. They are instrumental in helping us gather insights, recruit talented individuals, and stay abreast of the latest developments and trends within the ecosystem. Our active participation in these communities underscores our commitment to building a product that is not only technically sound but also aligned with the needs and expectations of the wider Cardano community.

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

Given that Stargazer has not raised funds from venture capitalists or angel investors, we have carefully budgeted to cover essential costs.

As of November 29th, the price of $ADA 1 is $0.38. To account for potential fluctuations in the $ADA price, we're including a buffer of 20%, setting an assumed price of $ADA 1 at $0.32.

Our funding request of $ADA 100,000 is allocated over the next 5 months and is broken down as follows:

One-Time Costs:

• Smart Contract Audit:
• Cost: $20,000 (Approx. $ADA 62,766)
• Purpose: To ensure the security and robustness of our smart contracts, which is critical for the trustworthiness of Stargazer.
• Incorporation of a Limited Liability Company (UG) in Germany:
• Cost: $7,000 (Approx. $ADA 21,960)
• Purpose: This legal structure will provide a formal and credible basis for Stargazer’s operations, ensuring compliance with regulatory requirements.

Monthly Costs:

• Marketing & Community Engagement:
• Monthly Cost: $ADA 3,054.8
• Total for 5 Months: $ADA 15,274
• Purpose: Ongoing efforts to promote Stargazer, engage with the community, and build a user base. This includes social media campaigns, community events, and other outreach activities.

Total Budget Request:

• For a period of 5 months: $ADA 100,000

Additional Considerations:

• Project Management and Reporting: We have allocated a portion of our budget to project management and regular reporting to the community. This ensures that the project remains on track and that stakeholders are kept informed of our progress.
• Documentation: Adequate resources are dedicated to maintaining comprehensive documentation of the project, which is vital for transparency and future scalability.

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

Stargazer’s budget is meticulously planned to ensure maximum value for the Cardano ecosystem. The costs, while significant, are aligned with industry standards and are essential for delivering a high-quality, secure, and user-friendly DeFi platform on Cardano. Here’s how the project represents value for money:

Alignment with Industry Standards:

• Smart Contract Audit Costs: The cost for the smart contract audit is consistent with industry rates for comprehensive security assessments, essential for ensuring the reliability and security of DeFi platforms. Given the complexity and potential risks associated with DeFi applications, this is a necessary investment to protect users and uphold the integrity of the Cardano ecosystem.
• Legal Incorporation Costs: The legal incorporation of Stargazer as a UG in Germany is in line with standard legal fees for company formation. This step is crucial for regulatory compliance and establishes a solid foundation for future operations and expansions.

Return on Investment for the Cardano Ecosystem:

• Enhancing DeFi Accessibility: By simplifying and securing yield farming on Cardano, Stargazer will attract more users to the ecosystem, expanding the user base and increasing the overall value of the network.
• Promoting Innovation and Security: The development of Stargazer involves innovative approaches to DeFi strategies, contributing to the overall technological advancement within the Cardano ecosystem. The emphasis on security also builds trust and reliability, critical for long-term growth.

Cost-Effectiveness and Efficiency:

• Efficient Budget Allocation: Each element of the budget is carefully allocated to ensure that we are maximizing resources for development, security, and community engagement. We have also incorporated a buffer in our budgeting to account for ADA price fluctuations, ensuring financial stability and project continuity.
• Community Engagement and Marketing: The budget allocation for marketing and community engagement is designed to ensure effective outreach and user growth, which is a key metric for measuring the success of Stargazer and its contribution to the ecosystem.

Supporting Evidence:

• Market Research: The budget has been determined based on extensive market research and comparison with similar projects in the industry. This research ensures that our costs are competitive and reasonable for the services and quality we aim to provide.

In summary, the budget for Stargazer has been carefully crafted to deliver value for money, ensuring that every ADA spent contributes significantly to the development, security, and growth of the Cardano ecosystem. The project not only aligns with industry standards in terms of costs but also promises substantial returns in terms of technological advancement, user growth, and ecosystem security.

[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