Astarter Enhanced Concurrency on Cardano

[GENERAL] Name and surname of main applicant

Jon Chamberlain

[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)

6

[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)

Our solution is the implementation of Two-Step Transaction Flow and Transaction Chaining to amplify DEX transaction processing capacity, enhancing efficiency and the user experience.

[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 comprehensive codebase of the background service includes numerous integrated functional modules, making its open-source nature less convenient at the moment. However, we plan to restructure and prepare for open-sourcing during this proposals initial timeframe

[SOLUTION] Please describe your proposed solution.

Problem Perception

The fundamental challenge Astarter addresses is the need for improved concurrency within DEXs on the Cardano blockchain. The current ecosystem experiences limitations in handling high transaction volumes per block, hindering scalability and user experience.

We built and deployed our two-step transaction process, where users submit transaction requests to a request pool, which the matchmaker then packs and manages. This process increases concurrency, allowing Astarter DEX (ADEX V2) to handle 3–5 requests per block. ADEX V2 is accessible from the links provided in this proposal.

Approach Rationale

Our analysis found that Transaction Chaining offers a unique approach to concurrency. Instead of batching and ordering UTXOs off-chain, it orders them virtually in a “first-come-first-served” manner. It enables lower latency and substantially higher throughput.

We conceptualised an innovative solution employing two core mechanisms: the Two-Step Transaction Flow and Transaction Chaining. These mechanisms leverage streamlined transaction processing, enabling Astarter DEX to handle significantly higher transaction numbers per block.

Testing on the Cardano public testnet (Preprod testnet) demonstrates proof of concept via transaction scripts that submited transactions to the transaction chain. 

In the first test we sent two transactions in one block. This demonstrates that one block can process multiple packages, improving concurrency.

Tx1: https://preprod.cardanoscan.io/transaction/876d42e0944da52394bb9f4c57d4f6b592ccb9c0c9b8a25bdac6112b60ec9c50

Tx2: https://preprod.cardanoscan.io/transaction/de0d01fa7fa614ea20af66ae1fac43bc7a6a90143e4f77b48a954c9929ac44e6?tab=utxo

Additionally, a follow-up test involved submitting 100 transactions consecutively, they were packed into blocks in sequence. This means there’s no limit to transactions within 100 in the Cardano chain mempool.

https://preprod.cardanoscan.io/transactions?blockHeight=1255375

https://preprod.cardanoscan.io/transactions?blockHeight=1255376

https://preprod.cardanoscan.io/transactions?blockHeight=1255377

https://preprod.cardanoscan.io/transactions?blockHeight=1255378

https://preprod.cardanoscan.io/transactions?blockHeight=1255379

Implementing transaction chaining alone in ADEX would considerably increase concurrency, potentially reaching 25 transactions per block, similar to the BTC chain. Combining this with the two-step transaction process could take ADEX’s concurrency to even greater heights.

Engagement Strategy

Our solution engages developers, users, and the broader Cardano community. By open-sourcing our developments, we encourage collaboration and contributions from developers worldwide. User feedback and engagement will further refine our solution.

Impact Demonstration

We plan to further demonstrate and validate our solution with a beta release for rigorous testing on Cardano's testnets, demonstrating enhanced concurrency and scalability with Astarter DEX V3. Furthermore, we aim to engage the community through detailed reports, data analysis, and user feedback loops to showcase tangible improvements.

Unique Aspects and Benefits

What sets our solution apart is the combination of the Two-Step Transaction Flow and Transaction Chaining within Astarter DEX. This approach significantly enhances concurrency, offering seamless and faster transaction processing. The benefits extend to all participants within the Cardano ecosystem, including traders, liquidity providers, developers, and end-users. By tackling the concurrency issue, we contribute to Cardano's scalability, usability, and attractiveness for DeFi applications.

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

Enhanced Concurrency and Scalability

By implementing the proposed solutions in Astarter DEX, our project will significantly enhance the transaction throughput, improving concurrency on the Cardano blockchain. This upgrade will benefit users, traders, liquidity providers, and developers, fostering a more efficient and seamless trading experience.

Quantifying Impact

We will measure the impact with quantitative evaluation of the number of transactions per block before and after implementing the Two-Step Transaction Flow and Transaction Chaining mechanisms. Metrics include transaction processing times, block capacity utilization, and overall DEX performance.

Qualitative Benefits

Qualitative aspects of user feedback, engagement, and satisfaction will demonstrate the benefits. We'll collect and analyze user experiences, opinions, and suggestions to gauge the perceived improvements in Astarter DEX usability and efficiency.

Value to the Cardano Ecosystem

The success of this project will add tangible value to the Cardano ecosystem by addressing a critical scalability issue within its DeFi space. It will attract more users and developers to Cardano and help make it a more competitive blockchain platform for DeFi applications.

Sharing Outputs and Opportunities

The outcomes, including reports, analysis, and insights gained from the project, will be shared openly with the Cardano community through regular updates on social media, community forums, developer channels, and project documentation. We'll actively engage with developers, users, and stakeholders, presenting opportunities for collaboration and contribution that will further advance the Cardano 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?

• Technical Expertise and Experience:

Our team possesses extensive technical expertise in blockchain development, particularly in the Cardano ecosystem. We have a proven track record of successfully implementing complex solutions. For instance, we've previously developed and deployed functionalities within Astarter DEX, showcasing our proficiency in enhancing decentralized exchanges.

• Strategic Partnerships and Collaborations:

We've established strategic partnerships and collaborations within the blockchain and DeFi space. This includes collaborations with renowned DeFi projects and blockchain developers, fostering a network of knowledge sharing, resources, and support.

• Transparent and Methodical Approach:

Our approach to project management is transparent and methodical. We intend to maintain open communication with the Cardano community, providing regular progress reports, milestones achieved, and any challenges faced. This ensures accountability and builds trust among stakeholders.

• Feasibility Validation:

We plan to validate the feasibility of our approach through a series of rigorous tests and simulations before deploying the proposed solutions. This will include conducting comprehensive stress tests on the Cardano testnet to simulate various real-world scenarios and potential challenges that could arise in a production environment.

• Risk Management and Governance:

To manage funds properly, we will adhere to robust governance structures and risk management protocols. All fund usage will be meticulously documented and regularly reported to the community. Additionally, a multi-signature wallet system or smart contract escrow may be utilized for transparent fund management, requiring multiple keyholders' consent for fund disbursements.

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

• Objective: Implement the initial phase of the Two-Step Transaction Flow.
• Deliverables: Complete the coding and initial testing of the Two-Step Transaction Flow mechanism.
• Acceptance Criteria: Successful execution of a test scenario demonstrating the Two-Step Transaction Flow with at least 3-5 requests per block.

• Objective: Finalize and test the Transaction Chaining mechanism.
• Deliverables: Completed development and initial testing of Transaction Chaining.
• Acceptance Criteria: Conduct a series of tests involving at least 100 transactions chained together and successfully

• Objective: Integration of Transaction Chaining with the Astarter DEX platform.
• Deliverables: Implementation of Transaction Chaining within the Astarter DEX infrastructure.
• Acceptance Criteria: Demonstrate the integration through a live test environment, ensuring seamless processing of transactions using Transaction Chaining in Astarter DEX.

• Objective: Optimization and refinement of Transaction Chaining and Two-Step Transaction Flow.
• Deliverables: Enhanced versions of both mechanisms addressing any identified issues.
• Acceptance Criteria: Successful completion of stress testing and optimization processes to ensure increased efficiency and improved performance.

• Objective: Prepare for the official deployment of upgraded Astarter DEX version.
• Deliverables: Finalized documentation and readiness for deployment.
• Acceptance Criteria: Completion of all necessary documentation, including comprehensive user guides and technical specifications.

• Objective: Official deployment and launch of the upgraded Astarter DEX version.
• Deliverables: Successfully deploy the upgraded Astarter DEX version to the Cardano mainnet.
• Acceptance Criteria: Full deployment of the upgraded Astarter DEX version, confirmed functionality, and an operational DEX ready for users to engage with.
•  Final project completion report and video

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

Chris | CEO

• Angel investor and blockchain evangelist.
• Senior project lead for multiple blockchain projects.
• Market research & analysis consultant for NULS blockchain.
• 6+ years of professional experience in the blockchain industry.

Jon | Marketing & Community

• Previously co-founded a business solutions center.
• Currently involved in blockchain node operations and smart contracts development activities.

Stephanie | Operations

• Angel investor and blockchain evangelist.
• 4+ years experience in the blockchain industry, with 10+ blockchain projects.
• Focused on blockchain project incubation & strategic marketing with Web3 Foundation, OKExChain & Binance Smart Chain ecosystem projects.

Robert | System Architect

• Graduated from Xi'an Jiaotong University.
• 10+ years of development experience.
• Led the development of multiple DeFi, GameFi, NFT, SocialFi, and side-chain projects.
• Former tech lead at Xunlei Limited.

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

Cost projections reflect every element of the proposal's plan from inception to finalisation, including each milestone. 

By the end of this proposed project, the final product will exceed expectations for MVP in demonstrating the extent of enhanced DEX concurrency and the usability benefits for the Cardano ecosystem.

• Personnel Costs:

Development Team: Breakdown of costs related to developers, engineers, and technical staff involved in implementing the technical solutions proposed. 25K

Project Manager: Cost related to project management, coordination, and oversight of the entire project. 25K

• Research and Development:

Testing and Simulation: Budget allocated for running extensive tests and simulations on the Cardano testnet. 25K

Tooling and Infrastructure: Costs associated with any necessary tools, software licenses, or infrastructure required for development and testing. 25K

• External Services and Expertise:

Audits and Security Checks: Budget for third-party security audits and checks to ensure the robustness and security of the developed solutions. 50K

Legal and Compliance: Allocation for legal services, compliance checks, or consultations required for regulatory adherence. 50K

• Operational Costs:

Community Engagement: Budget for community outreach, communication, and engagement activities to share progress and gather feedback. 20K

Marketing and Awareness: Funds allocated for marketing efforts, such as awareness campaigns and materials related to the project's achievements. 30K

Contingency: Reserved funds for unforeseen expenses or adjustments during the project implementation. 50K

Ensure to provide a detailed breakdown of each cost category, specifying the expected amounts and the rationale behind each expense.

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

• Strategic Importance: 

Our project will significantly enhance the transaction throughput, improving concurrency on the Cardano blockchain. 

Significantly, this proposal will facilitate technological innovation that brings enhanced transaction concurrency to Astarter DEX, along with planned code restructuring for open sourcing, albeit partial the technology sharing will benefit other builders in the Cardano ecosystem implement enhanced transaction mechanisms.  

  

Enhancing transaction concurrency is critical for a performant blockchain. It's a solution for a better user experience for ecosystem participants, fostering growth and adoption. 

• Efficiency and Impact:

Allocation of funding will directly contribute to continual and sustainable development in all aspects of the project to completion. It is tied directly to achieving the project's objective of providing an efficient solution beneficial to the ecosystem and wider Cardano community.  

• Market Rates and Justification 

Budgeting for the project may appear modest compared to other Catalyst proposals with similar ideas. The reason is partially due to competitiveness and the goal of building something that provides a solution beneficial to the ecosystem. As a distributed team of seasoned professionals and founding members of the Astarter DeFi infrastructure hub, our passion and motivation are mature in the belief of a secure decentralized future.

• Value Proposition:

 The value gained from successful funding and completion of this project will lead to Cardano reaching new levels of adoption by both developers and users alike. 

• Long-Term Benefits: 

The project aims to deliver long-term benefits with continual innovation and development to maintain and grow significant levels of decentralization within Cardano governance frameworks now and into the future. 

• Transparency and Accountability: 

In some respect, this being our first proposal for Catalyst funding demonstrates intended broader community engagement that is public and transparent. In addition to detailed reports, data analysis, and user feedback loops to showcase tangible improvements and accountability in financial planning. Budget allocation, cost-effective strategies, and measures to monitor and optimize spending are in place.

[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