Last updated 3 weeks ago
When ADA reaches $10 the inefficiencies of DEXs will shine: trading requires a minimum of 2 TXs now, and orders can’t be atomically composed even via aggregators, wasting ADA from the users' wallets
This is the total amount allocated to Preparing for the bull run: The foundation for fast, cheap and composable DeFi. 0 out of 5 milestones are completed.
1/5
Off-chain Relay Implementation
Cost: ₳ 75,000
Delivery: Month 1 - Apr 2024
2/5
Autonomous Account Smart Contract Implementation
Cost: ₳ 90,000
Delivery: Month 2 - May 2024
3/5
Green Orders Implementation
Cost: ₳ 75,000
Delivery: Month 3 - Jun 2024
4/5
SDK development
Cost: ₳ 15,000
Delivery: Month 4 - Jul 2024
5/5
Final
Cost: ₳ 45,000
Delivery: Month 5 - Aug 2024
NB: Monthly reporting was deprecated from January 2024 and replaced fully by the Milestones Program framework. Learn more here
A framework that shifts order placement off the chain reducing fees and introducing an abstraction of autonomous accounts that dApps can transact with enabling composability and automation
No dependencies.
Fully open-sourced. MIT Licence.
We assert that, given the existing off-chain execution systems, Cardano currently lacks the readiness to bring a substantial number of users into its DeFi ecosystem (aka readiness for the next bull run). This limitation arises due to potential challenges for end users in the face of high traffic influx.
In response to this, we present a framework, to be developed in Rust and offered as a fully open-source solution. This framework is designed to be adopted and integrated by other dApp teams, providing widespread utility throughout the entire Cardano DeFi ecosystem. Its primary goal is to markedly reduce costs per order for end users and, concurrently, elevate the throughput to a level that ensures a seamless experience.
At Spectrum Labs, we are dedicated to decentralization, and consequently, the framework itself will embody principles of openness, transparency, and decentralization—aligning with the historical approach we have maintained with all our open-source products.
Green Orders
In the current dApps one order is usually represented as 2 on-chain transactions. We can call the first transaction an “order placement” and the second one a “verification + execution”. Thus the end user a) pays for order execution (so-called “batcher” fees) and b) twice pays network fees. This is not ideal.
To enhance the efficiency and cost-effectiveness of the off-chain execution system, as well as to significantly diminish the cost per order, we are streamlining the process by eliminating the necessity for on-chain order placement. Instead, we encode these orders into a message, which is then relayed off-chain to the designated executors. These off-chain orders, referred to as "green," incur zero on-chain overhead. The message's structure is depicted below:
To execute off-chain orders effectively, an on-chain entity is essential for validating execution and facilitating the release of user funds without direct user interaction. Hence, we introduce an Autonomous Account (AA) utilizing eUTxO — an on-chain entity capable of reading order messages, validating execution, and releasing the necessary user funds for deal execution. Users engaging with AA are required to deposit funds earmarked for trading, akin to a deposit made to a centralized exchange (CEX) but without relinquishing custody of their funds.
Since now only 1 on-chain transaction is required per order (in the current systems there are 2 on-chain transactions) the ensuing benefits of this modification include:
Autonomous Account
An interoperable Autonoumus Account with an arbitrary number of applications is shown in the figure below. The burden of order validation is now delegated to an external script.
The API of AA is described in the figure below:
Explore more about Autonomous Account and Green Orders in the Spectrum Bloom: A self-developing, sustainable, eUTxO-native framework for decentralized finance white paper.
The solution can prove advantageous for various user categories, and our focus will center on three key groups:
To measure the impact we will use the following metrics:
The outputs will be released on GitHub and will be open to anyone — the broad documentation of how to use and integrate the solution. Everything will be broadcast through Spectrum Labs Community Channels (such as Twitter, Discord, and Telegram).
We will share those outputs via Spectrum Labs community channels (such as Twitter, Telegram and Discord).
Title: Off-chain Relay Implementation
Description: Off-chain orders must be able to reach executors, thus a configurable relay node that anyone could set up is required. Such a node will be implemented in Rust and supplied as a part of the framework.
Outputs:
Acceptance Criteria:
Title: Autonomous Account Smart Contract Implementation
Description: According to the specifications described in the white paper, implement the AA smart contract
Outputs:
Acceptance Criteria:
Title: Green Orders Implementation
Description: According to the specifications described in the white paper, implement the code base for Green Orders
Outputs:
Acceptance Criteria:
Title: SDK development
Description: The SDK is the interface for developers to make such operations as sign, submit, and monitor. It is needed for easier integration with the system.
Outputs:
Acceptance Criteria:
Outputs:
Acceptance Criteria:
Leaders
Ilya Oskin
Tech Lead
Engineering Leader with 6 years of experience in the blockchain industry. Keen on functional programming. Took part in the development of the reference node of the eUTxO-based blockchain Ergo and its explorer. Designed and developed the first version of the ErgoDEX protocol from scratch. The main architect of the Spectrum Finance Cardano AMM. Lead researcher and developer of the Spectrum Network
In the scope of the proposal, Ilya is responsible for leading the development of the whole project's outputs
Yasha Black
Product Lead
Product manager, product analyst, UX/UI, and JavaScript developer with 7 years of experience in the IT industry. Built a strong product team, and designed the first version of the Spectrum Finance user interface.
In the scope of the proposal, Yasha is responsible for funds management, as well as for the control and acceptance of final works
Core team
Timofey Gusev
Lead Software Developer
Developed smart contracts and execution bots for Ergo and Cardano sides of Spectrum Finance protocol (Scala, Haskell, Plutus). Designed and developed an internal Cardano explorer.
Timofey is responsible for implementing the proposed solution in the proposal's scope.
Alexander Romanovsky
Lead Core/SC Developer
Developed smart contracts and off-chain services for Ergo and Cardano sides of the Spectrum Finance AMM protocols (Scala, Haskell, Plutus, Plutarch).
Alexander is responsible for implementing the proposed solution in the proposal's scope.
Ruslan Salakhov
Lead TypeScript Developer
Build the architect of the current Spectrum Finance interface. Has 7+ years of experience as a JavaScript developer and 5 years in building interfaces and tools in fintech.
Ruslan is responsible for implementing the proposed solution in the proposal's scope.
Alex Oranov
Senior Blockchain Researcher
Has 5 years of experience in research and development, including scientific work, industrial solutions related to artificial intelligence, and data analysis. Participated in the smart contracts design and development of the Yield Farming protocol (Ergo side). Researcher and one of the Whitepaper authors of the Spectrum Network protocol.
Alex is responsible for implementing the proposed solution in the proposal's scope.
Milestone 1. Off-chain Relay Implementation
Duration: 1 month.
Monthly costs:
Total milestone costs: $29,000
Milestone 2. Autonomous Account Smart Contract Implementation
Duration: 1 month.
Monthly costs:
Total milestone costs: $29,000
Milestone 3. Green Orders Implementation
Duration: 1 month
Monthly costs:
Total milestone costs: $29,000
Milestone 4. SDK development
Duration: 1 month
Monthly costs:
Total milestone costs: $29,000
Final Milestone
Duration: 1 week
Monthly costs: $0
Total milestone costs: $0
All the works for the final milestone will be volunteered by Spectrum Labs founders.
Total Budget: $116,000
For now, the ADA price is close to $0.4 per ADA. We set the budget of this proposal to 300,000 ADA to mitigate price fluctuation risks.
We estimated the cost of the project based on average dev salaries which is $7,000-10,000k for 5+ years of experience (senior software developer grade). Our team is blockchain and Cardano-focused and obtained most of the experience in the crypto industry so the domain-specific knowledge is sufficient to tackle the most challenging industry problems.
Since the core idea of the solution is to shift order execution off-chain it as a result it will significantly reduce the utilization of Cardano network resources.
In the long run, the project has the potential to preserve millions in end-users' funds, drawing in fresh users and developers. Furthermore, it can play a pivotal role in rapidly enhancing existing dApps, facilitating the swift delivery of value. Finally, through the implementation of this solution, we are at the forefront of pioneering Cardano DeFi composability. This not only enables the execution of automatic non-custodial financial operations but also positions us as a leading solution in terms of capital efficiency.