Optim-Account: Cardano L2. Virtual ledger layer for account-model-based txs

[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)

8

[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 Account is an open network of sequencers that creates a virtual ledger layer enabling account-model-based transactions for composability, interoperability,&intent-based transaction across dApps

[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?

Yes

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

Fully Open Source, MIT License

Serving as the foundational infrastructure for the development of account-based model applications, the Optim Account System embodies a commitment to openness and collaborative progress within the Cardano ecosystem. It is not merely a proprietary tool but a public good, fully open-sourced to foster transparency, accessibility, and shared innovation. 

By making this sophisticated system openly available, it becomes a cornerstone for developers and enthusiasts alike, inviting collective contributions and refinements that will fortify the Cardano ecosystem's resilience and sophistication.

In envisioning the trajectory of the Optim Account System, its significance expands exponentially in tandem with its adoption. This potential growth is indicative of its inherent utility and underscores its transformative potential. As more applications embrace and adhere to the interoperability standard set forth by the Optim Account System, a symbiotic relationship emerges, enhancing the overall user experience.

[SOLUTION] Please describe your proposed solution.

The Optim-Account is a natural and ambitious extension of Optim's innovative implementation of transaction chaining combined with other on and off chain optimizations live and in use for Optim's Liquidity Bonds product(live for 1 year with 70 Million ADA successfully transacted)

A prototype of the Optim-Account is seen on our currently deployed Dapp, the Optim Bonds. The application takes advantage of the future state of the blockchain and makes use of it in the present, using a bespoke offchain technology that ensures rollback and fork coherence in the process. We will continue to leverage this technology and in fact have made strives in pushing it to the utmost theoretical limit of scalability. This is what the Optim Account aims to achieve, and this is the core of our scaling improvement plan around the Optim Account. The other features of it center around improving the developer experience and pushing beyond what apps on Cardano can achieve.

The concept of Optim-Account is conceived as a response to inherent limitations within Cardano's existing architecture, particularly addressing issues related to transaction concurrency and composability limitations arising from deterministic processing. Rooted in a comprehensive understanding of blockchain mechanics and user experience, the Optim-Account system introduces a paradigm shift in how transactions are structured and executed within the Cardano ecosystem.

At the core of the Optim-Account system is the concept of intent-based transactions, which diverges from traditional direct blockchain transaction submissions. Users articulate their transactional goals as 'intents', a digital method of conveying desired outcomes without immediately initiating on-chain operations. These intents offer a simpler, more abstract yet precise interaction with the blockchain, easing complexity.

Intent-Based Transactions focus on specifying the "what" rather than the "how" of desired outcomes. Traditional transactions require users to define every parameter, but intents allow users to state their end goals and leave execution to 'solvers'. For example, traditional transactions might demand "do A then B, pay C to get X," while intent-based transactions would simply state "I want X and am willing to pay up to C", letting solvers handle technical details.

The process of conveying user intents in the Optim-Account is akin to sending messages. Users articulate their transactional needs in the form of these messages, which encapsulate the essence of their intended blockchain interactions. This abstraction not only simplifies the user experience but also enhances the system's efficiency.

By decoupling the user's direct engagement with the blockchain's intricacies, the system effectively opens the door to a more intuitive and accessible blockchain experience, even for users who may not possess extensive technical knowledge of blockchain operations.

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

The Optim-Account system marks a significant advancement in the Cardano ecosystem, addressing key challenges like transaction efficiency and composability. By integrating sequencers and intent-based processes, it addresses issues like concurrency and resource contention, offering a practical approach to enhancing Cardano’s capabilities. This system is an important step in evolving blockchain interactions, combining technical improvements with a focus on user needs.

As the system approaches its Mainnet Beta release, it aspires to contribute positively to the Cardano ecosystem. This upcoming release is an important milestone, focusing on functional deployment while emphasizing stability and security in blockchain transactions. 

By acting as a virtual ledger layer that integrates relatively easily into Cardano’s existing architecture and infrastructure, dApps and Cardano users can derive value and expect a widespread impact on the ecosystem. Composable dApps and account abstraction are just a few of the user experience improvements that the Cardano community can expect.  

We will measure impact in a number of ways

• Number of dApps using the Optim-Account model
• Amount of ADA transacted via Optim-Account dApps
• New use cases and DeFi functions enabled by Optim-Account
• Number of Optim-Accounts created
• Amount of ADA held in Optim-Accounts

[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?

A prototype of the Optim-Account is seen on our currently deployed Dapp, Optim Bonds. The application takes advantage of the future state of the blockchain and makes use of it in the present, using a bespoke offchain technology that ensures rollback and fork coherence in the process. We will continue to leverage this technology and in fact have made strives in pushing it to the utmost theoretical limit of scalability. This is what the Optim Account aims to achieve, and this is the core of our scaling improvement plan around the Optim Account. The other features of it center around improving the developer experience and pushing beyond what apps on cardano can achieve.

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?

Deliver the completed design and documentation of all feature extensions that bridge beyond Optim's current tx chaining and offchain systems architecture to what can be considered a more complete and scalable Optim-Account implementation.

Milestone outputs include documented public Gitbook and Github access showing all system components.

Deliver the basic feature extensions, bridging beyond Optim's current tx chaining and offchain systems architecture to a fuller Optim-Account implementation showcasing the main features of the system.

Milestone outputs include on and off chain proof of a working sequencer, intents, and basic account-based actions such as gas and autonomous transactions working on testnet.

Complete an audit of the Optim-Account system after a successful testnet of the basic features and first dApp deployment. Also undergo additional code review and audit of any changes and fixes to contracts resulting from initial audit.

Milestone outputs will be two comprehensive public audit reports (initial audit + audit of fixes/ changes)

Showcase the first dApp using the basics of the Optim-Account architecture during a functioning mainnet Beta.

The milestone will be confirmed by implementing a useable dApp whereby a user can feed tx fee gas into an Optim-Account then have it execute automatic, intermittent airdrop claims autonomously based on eligible Liquidity Bonds confirmed in wallet.

Extend the Optim-Account model to include capabilities for more complex inter-dApp interactions showcasing advanced composability and settlement with increased transaction speeds from increased sequencer throughput.

Milestone outputs include a testnet deployment of an advanced inter-dApp composable system such as OADA.

Mainnet, feature complete Optim-Account with multiple working dApps and scalable architecture ready for other builders to deploy advanced applications beyond Cardano's current capability (perp DEX etc.)

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

Ethan Protas - Product lead

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.

Software Engineering - Modular smart contract design and build for an extensible, upgradable Optim-Account system. This includes improvement and enhancement of Optim’s current transaction chaining and offchain architecture, while building out additional features needed for a feature complete and scalable system. The system would enable intent-based transactions and fast sequencing to exponentially increased throughput. Onchain and offchain code in addition to engineering a basic front end to enable initial Optim-Account dApps. 

Cost - 400,000 ADA

Audits -  An audit of the Optim-Account system and an additional code review + audit of any fixes made to contracts after the initial audit. This estimate is based on the scope of Optim-Account contracts and comparing this cost and previous Optim audits and other audits across the Cardano ecosystem. 

Cost- 275,000 ADA

Marketing & Education - Content generation and promotion for Optim-Account. This includes copywriting, video tutorials, instructional and explanatory diagrams, and other educational material that will be used to onboard users and projects. Promotion of content and educational materials in digital and physical mediums, where appropriate and effective, is also covered.  

Cost - 75,000 ADA 

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

The cost of the project in the context of the Cardano ecosystem signifies a strategic investment in value creation and sustainable growth. By allocating resources to this initiative, the Cardano ecosystem is positioned to reap multifaceted benefits that extend beyond the immediate financial expenditure.

The Optim Account System allows for the development and implementation of new solutions, features, or products that enhance the overall capabilities and functionality of the Cardano blockchain. This infusion of resources contributes to maintaining Cardano's competitive edge in the rapidly evolving landscape of blockchain technology.

By investing in projects that align with Cardano's values, the ecosystem ensures that advancements benefit a broad spectrum of users and stakeholders. This inclusivity fosters a sense of ownership and participation, reinforcing Cardano's democratic and decentralized ethos.

In essence, Optim Account translates into value for money by catalyzing innovation, nurturing community dynamics, and fortifying the principles that underpin the Cardano ecosystem. It positions Cardano as not just a blockchain platform but as a dynamic and forward-looking ecosystem that delivers tangible and sustainable benefits to its users and the broader blockchain 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