Perpetual Protocol by DexHunter

[GENERAL] Name and surname of main applicant

Nikita Melentjevs

[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)

12

[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)

Developing a fully decentralized perpetual contract trading protocol on Cardano for secure, transparent derivatives trading.

[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 contracts will be open-source, however the backend and frontend will not be

[SOLUTION] Please describe your proposed solution.

Our solution entails developing a decentralized protocol for perpetual contracts on Cardano. This will allow users to trade derivatives with leverage in a non-custodial manner. The protocol will include features like automatic liquidation and margin management, ensuring a secure and efficient trading environment.

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

The development and successful launch of the Cardano Perpetual Protocol will have a multifaceted positive impact on the wider Cardano community:

1. Enhancing the DeFi Ecosystem: By introducing a decentralized derivatives trading platform, the project will significantly enrich Cardano's DeFi offerings. This will attract a broader user base interested in advanced financial instruments, thereby increasing the overall utility and appeal of the Cardano blockchain.
2. Demonstrating Cardano's Technical Capabilities: The implementation of complex financial instruments like perpetual contracts showcases the advanced capabilities of Cardano's smart contract platform. Successfully executing such a sophisticated project serves as a testament to the robustness and versatility of Cardano's technology.
3. Community Engagement and Education: Through this project, we aim to foster greater community engagement. Educational initiatives around derivatives trading and the use of our protocol will empower users with knowledge, enabling informed participation in the DeFi space.
4. Driving Adoption and Innovation: By providing new functionalities, the protocol will not only attract traders and DeFi enthusiasts but also inspire other developers and innovators to build on Cardano, contributing to a more vibrant and dynamic ecosystem.
5. Economic Growth within the Ecosystem: Increased transaction volume and user engagement on the platform will lead to higher demand for ADA, Cardano's native cryptocurrency, potentially positively impacting its value and the economic health of the ecosystem.

[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 team has previous experience developing DeFi applications such as the biggest Cardano DEX Aggregator DexHunter. We'll conduct alpha and beta testing phases to validate our approach, with ongoing community feedback and audits.

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

Preparation

Duration: 1 month

Outputs:

1. The Project Plan is formalized in the document with all of the features, technical components, and interfaces that needed to deliver the project
2. Specification for all the technical components of the project: smart contracts, backend, interfaces

Acceptance criteria:

1. The project plan is published in the form of a roadmap of the public resources of the future project
2. The specification for each technical component is published as a markdown file to each related open GitHub repository

Smart Contracts development

Duration: 3 months

Outputs:

1. The smart contracts are fully developed according to the specifications outlined in the Project Plan from Milestone 1. This includes all the essential features and functionalities required for the project.
2. Detailed documentation for each smart contract, covering its purpose, functions, variables, events, and any other relevant information. The documentation should facilitate understanding and future maintenance.

Acceptance Criteria:

1. The smart contracts undergo extensive testing to ensure their correctness, security, and efficiency. Any identified issues or bugs are resolved during this phase.
2. The documentation for each smart contract is published on the project's documentation platform or repository. It should be easily accessible to developers, auditors, and other stakeholders.
3. The completed and tested smart contracts are integrated into the project's GitHub repository, ensuring version control and collaboration among the development team.
4. The developed smart contracts strictly adhere to the specifications outlined in Milestone 1, meeting all the predetermined criteria and requirements.

Off-chain business logic for order execution

Duration: 3 months

Outputs:

1. The off-chain codebase which serves as an execution engine to execute perpetual orders

Acceptance criteria:

1. The off-chain code base is covered with tests
2. The off-chain is developed according to the specification
3. The off-chain works as expected

API development

To display proper protocol data in the interface the in-house API is required

Duration: 2 months

Outputs:

1. A codebase for the API is written according to the specification from Milestone 1

Acceptance criteria:

1. The API code base is covered with tests
2. The API consists of endpoints that were mentioned in the specification
3. The API works as expected

Interface

Duration: 2 months

Outputs:

1. A user-friendly interface is developed based on the project plan and interface specifications from Milestone 1.
2. The interface is visually appealing, responsive, and provides seamless interaction with the smart contracts and API.

Acceptance criteria:

1. The interface is tested for usability and functionality.
2. The interface design adheres to the specifications outlined in Milestone 1.
3. User feedback is gathered and incorporated for improvements.

Duration: 1 month

Outputs:

1. Closing video summarizing the entire project journey, its features, and functionalities.
2. The video includes demonstrations of key aspects such as smart contract execution, off-chain order processing, and API integration.
3. The video highlights the project's achievements, challenges overcome, and future plans.

Acceptance criteria:

1. The closing video effectively communicates the project's purpose, goals, and outcomes.
2. The video is well-edited, engaging, and suitable for public sharing.
3. Stakeholder feedback is considered for any necessary revisions to the closing video.

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

CEO @ DexHunter https://www.linkedin.com/in/nikita-melentjevs/

Project lead, business, and partnership development

CTO @ DexHunter https://www.linkedin.com/in/edoardo-carlo-salvioni/

Blockchain and backend development

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

Milestone 1: Preparation

• Project Planning & Documentation:Technical Writers
• Project Management Tools
• Public Resources (web hosting, domain)
• GitHub repository setup
• Cost Estimate: 10% of the total budget (75,000 ADA)

Milestone 2: Smart Contracts Development

• Development Costs:Smart contract developers' salaries
• Security audit (external service)
• Development Tools (IDEs, testing frameworks)
• Documentation: Technical writing for documentation
• Cost Estimate: 25% of the total budget (187,500 ADA)

Milestone 3: Off-chain Business Logic

• Development Costs:Backend developers' salaries
• Testing frameworks
• Continuous integration services
• Cost Estimate: 20% of the total budget (150,000 ADA)

Milestone 4: API Development

• Development Costs:API developers' salaries
• API testing tools
• Documentation
• Cost Estimate: 15% of the total budget (112,500 ADA)

Milestone 5: Interface

• Development Costs:Frontend developers' salaries
• UX/UI design tools and services
• Usability testing (may involve user testing groups)
• Cost Estimate: 15% of the total budget (150,000 ADA)

Other Expenses

• Publicity/Marketing: Community engagement, promotional materials
• Project Management: Management tools, regular team meetings
• Documentation and Reporting: Ongoing documentation, final report preparation
• Contingency Fund: Unforeseen expenses, emergency funds
• Cost Estimate: 10% of the total budget (75,000 ADA)

Third-Party Products/Services

• Software Licenses: IDEs, testing frameworks, project management tools
• Professional Services: Legal, accounting, code auditing
• Hardware: If required for development or testing
• Cloud Services: Hosting, CI/CD pipelines, data storage

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

The cost is justified by the potential to significantly enhance Cardano's DeFi ecosystem, drawing in new users and developers, and showcasing the capabilities of Cardano's smart contract platform.

[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