Anvil x Nuvola: Collateralization Hub

[GENERAL] Name and surname of main applicant

Zachary Soesbee

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Nuvola Team - https://twitter.com/NuvolaDigital - nuvoladigital.io

[GENERAL] Requested funds in ada

245000

[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)

We propose to create a Collateralization hub, that would allow users to collateralize future rewards into on-chain proof, creating an asset that is able to unlock liquidity for the participant.

[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

Not open sourced for MVP - potential to have parts open sourced in the future

[SOLUTION] Please describe your proposed solution

Rewards Protocols have been around for a while now, it’s time to take them to the next level

There are a large number of assets, within every blockchain, that are being staked, committed to LP, or locked in a similar fashion, awaiting a final reward. Currently, over 190k assets on Cardano are locked in Anvil non-custodial staking platforms. As time goes on, users who have staked assets should be able to unlock these guaranteed future rewards, before they are due, and trade based on market value. We plan on creating a central hub that can carry out these functionalities, with the final goal of being able to collateralize anything, from any protocol. 

By creating a collateralization hub, we can allow users of the Anvil staking platform to see all of their stakes aggregated into one place. This is what we plan on accomplishing with this Catalyst proposal, albeit our long term goal is to cover a broader spectrum of asset classes.

From the hub, users will be able to collateralize a stake. This means they would be querying Anvil tools to capture the information of the stake, wrap it into an on-chain asset, and lock away the initial commitment to the stake, for later claim/transfer of ownership. What this does is allows the user to have a “snapshot” or “voucher” of their stake, which can then be traded, sold, or lent out, based on market value, unlocking a large layer of liquidity that currently does not exist.

We see this tool as an innovative approach to unlocking liquidity of assets as well as creating new opportunities on the market to secure long term commitments at perceived value. This will create an entire new layer of markets and engagement with assets.

A great example of this would be a project like Last Snek Standing (Built by Anvil). In Last Snek Standing, users commit a balance of $SNEK token to a pool determined by a long term commitment. At the end of the pool time frame, the pool balance is split between the users who committed to the full term. For this example's sake, let’s say the end user decided to join the 10 month pool. In this case, the user is rewarded by committing to stake in that pool for 10 months, but not until the very end of the 10 months. After 3 months of staking, the user suddenly needs liquidity, or wants to change their position/holdings. Rather than leaving the pool, and being penalized by missing out on the pool rewards, the user could collateralize their stake. This would allow them to then sell it on a marketplace, make a trade, or lend it out. The new owner could then come back to the central hub, claim the stake, and would be the new owner, allowing them to finish the term of the stake and capture the rewards.

What could this grow into?

We see this tool being utilized for a lot more than just collateralization of staking rewards. The long term plan would be to integrate any protocol, and give the opportunity to collateralize anything through the platform. This could be something that outreaches to real world assets such as vacation packages, tickets to events, or even airline tickets. Our plan is to create a MVP model that works with the future vision of adding these additional layers, through a later proposal in the product version of Catalyst.

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

This project, and general logic/reasoning applied to this proposal, could greatly benefit the Cardano blockchain and community. We are attempting to provide an additional layer of liquidity, which most people see to be a very pertinent issue in the current landscape. Additionally, this allows for more project engagement, improved user experiences, and landscaping the future of what is capable.

In addition to unlocking liquidity, this proposal also leads to strong future goals. The platform MVP will only be suitable for Anvil stakes; but, in the future we plan on expanding this tool to many other asset classes, including web2 assets and reward protocols. We think this could have a huge impact on adoption, as it can function and achieve things that simple web2 products cannot. By voting for this proposal, you are also voting for our future ideas which could cover a multitude of real world assets and ideas. This proposal is the first step in that future, and we will showcase how powerful this tool can be with our MVP.

Additional Benefits:

• Greater Potential for Real-Life Applications: By providing a working MVP, our tool increases the chances of onboarding applications that solve real-world problems, thereby expanding Cardano's applicability beyond traditional blockchain contexts.
• Ecosystem Growth: By offering new tools and better accessibility, the project contributes significantly to the robustness and expansion of the Cardano ecosystem.
• Liquidity Enhancement: By making locked assets tradable, the platform enhances overall market liquidity.
• Community Engagement: Involving the Cardano community in the platform’s refinement.

[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 a strong track record in managing complex, innovative projects with high levels of trust and accountability, demonstrated by our successful deployment of several custom projects over 3 years. We plan to follow our standard company practices and develop this with the same intent that has driven our business to the level of success it currently has.

Currently our non-custodial staking platforms are responsible for the following assets:

Total stakes : 41.2k

Active stakes : 12.2k

Active staked assets: 190.5k

Our non-custodial staking platforms have been in operation for almost 2 years, and we see this as a feasible next direction to take. By leveraging our existing technology to create something entirely new for the space, we feel as if this is something we are highly capable of seeing through.

With that said, we will combine forces with the Nuvola team to create an even stronger team to lead this project to success.

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

Milestone 1: Architecting and Planning

Outputs: 

• Create planning document
• Timelines
• Planning
• Outlining Platform Requirements
• Work with Design team
• Create first version of wireframes
• Develop Marketing Plan
• Nuvola team to create marketing plan

Acceptance Criteria:

• Planning document completed and uploaded to Google Drive
• First version of wireframes completed and uploaded
• Marketing plan completed and uploaded to Google Drive

Milestone 2: Development and UI Refinement

Outputs: 

• Development of new back-end codebase to begin
• Review and refine initial wireframe based on feedback from team

Acceptance Criteria:

• Provide a video example of the back end in function through the use of an endpoint
• New version of wireframes to be uploaded

Milestone 3: Initial Testing

Outputs: 

• Closed alpha testing of platform amongst team
• Document feedback
• Use a plug-in or Google Form to receive feedback

Acceptance Criteria:

• Provide documentation showing the feedback received and necessary changes to be made
• Video showing the platform functioning in it’s alpha state, with no major bugs or errors.

Milestone 4: More testing and Final UI/UX refinements

Outputs: 

• Closed Beta Test
• UI Refinements based on feedback received

Acceptance Criteria:

• Release a fully functional beta platform, to a closed group, with no major bugs or errors
• Gather feedback from beta testers in a document
• Refine UI/UX based on feedback document, provide updated link to UI/UX to reflect changes

Final Milestone: Project Close-out and Impact Report

Outputs: 

• Finalize the project for public release 
• Produce comprehensive documentation of the work completed, including a video demonstration. 

Acceptance Criteria:

• Compile a project close-out report outlining the development process, community engagement outcomes, and a detailed review of all milestones achieved.
• Produce a video that demonstrates the platform's capabilities, its impact on the Cardano ecosystem, and real-world applications.

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

Anvil:

Cash (Zachary Soesbee) - CEO/Management

Patrick Bernard - Project manager and marketing 

Jérémie Bergeron - Lead developer UI/UX 

David Desjardins - Lead developer backend and smart contract 

Nuvola:

Raul De Benedittis - CEO

Syed Lanka - CTO

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

Marketing - 5% - (Nuvola)

• Creation and Execution of marketing plan

Development - 60% (Anvil)

• Development of the platform
• Develop UI/UX
• Develop back-end functionality
• Create aggregation tool for all Anvil staked assets

Project Management - 20% total -10% each (Anvil/Nuvola)

• Joint Management efforts towards hitting all milestones, creating necessary planning documents, lead testing efforts, and enforcing timelines

Design/Architecting - 15% (Anvil)

• Creating proposals/milestones
• Wireframe, design, mood boards

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

This project represents value for the Cardano ecosystem in a multitude of ways. The main driver of value is having a new method of creating liquidity for investors. By collateralizing a long term reward, we will unlock more frequent activity on-chain, promoting a healthier treasury. Additional value would include driving adoption through new tools and services. This is a hardly utilized architecture throughout all blockchains, as our research has shown it is a new and innovative method of development, which should attract new users.

The ultimate value will come from the product this develops into. Allowing people to collateralize real world items and other assets will bring more adoption to Cardano, branching from web2 companies to real world customers. The final result of this tool will represent what Cardano is truly capable of, and how we plan on using it to adopt more users and companies.