Grow Cardano DeFi with transparent on-chain Fund Management platform

[GENERAL] Name and surname of main applicant

Do Anh Ba

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

Entity (Incorporated)

[GENERAL] Requested funds in ada

250000

[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)

Danogo Club facilitates DeFi accessibility by connecting Season Investors with capital-ready inexperienced Members through transparent smart contracts and a user-friendly interface.

[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?

Yes

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

The code of smart contracts will be open source.

[SOLUTION] Please describe your proposed solution

Danogo Club aims to accelerate Cardano adoption by making it accessible for the Cardano community to participate in the Cardano economy.

With the inspiration from the model of open ended investment funds in the market which have a proven track record of benefits to investors, we are bringing this model to the Cardano community.

Danogo Club provides an intuitive interface that offers users investment opportunities that align with their risk appetites. By leveraging blockchain and smart contracts, Danogo Club creates a new paradigm where the professionals, known as Club Operators (OP), can connect with investors, referred to as Club Members, who have capital but lack the time and experience in the investment sector. Danogo Club bridges the knowledge gap, allowing Investors to explore and capitalize on Web 3.0 investment opportunities. Investors no longer need to dedicate extensive time to due diligence or endure the challenges of navigating the DeFi ecosystem alone.

How it works:

1. Club Creation: The Club Operator (OP) establishes investment funds with predefined parameters such as lockup period, management fee, hurdle rate, and performance bonus. Club Operators make investment decisions within these parameters and will be the FIRST to deposit and the LAST to withdraw from the Club Pool.
2. Investment Strategy: OP declares an investment strategy (e.g., Fixed Income), limiting the Club to only interacting with OP investment strategy Smart Contracts. For example, If OP declares an NFT strategy, the Club will only be allowed to interact with NFT DeX.
3. OP deposits capital into the Club and receives a Certificate of Deposit.
4. Capital Contribution: Users read the description of the club's strategy and parameters to decide if it suits them. Users can contribute Capital to the Club to become a Club Member. The Club can only receive additional funds from new Members if the Operator contribution is within the Minimum Operator Contribution Ratio. Members will receive a Certificate of Deposit at the beginning of the next epoch.
5. Investment: OP makes investments using the Club fund with an approved Smart Contract based on the declared parameters of the Club. There are several investment methods available, including native staking, token swapping, providing liquidity to pools, and more. Club NAV will be calculated at the end of each epoch, and OP can withdraw the Management Fee.
6. Redemption: Members can withdraw from the Club by submitting a request with their Certificate of Deposit and receive their ADA at the beginning of the next Epoch.
7. If there is more ADA in the Club for redemption, OP will be allowed to make further investments and have to sell other Club assets once there is enough ADA balance.
8. If the redemption request is within the Locked-up Period, the Early Redemption Penalty will be deducted from the Redemption amount and kept in the Club to be shared by others remaining.
9. If the withdrawing member receives a higher return than the Hurdle Rate, the Performance Bonus is deducted from the Redemption amount and paid to OP.
10. Capital Distribution: The Club Operator (OP) distributes all ADA back to Club Members based on their deposit ratios. The Club Operator (OP) will only be allowed to withdraw funds after disbursement to Club Members; the Club Operator (OP) will be the last to withdraw from the fund; the guaranteed return and performance bonuses are calculated.

Danogo Club's Risk Management system is designed to safeguard Club members from potential Club Operator misconduct and unauthorized fund withdrawals. To achieve this, we have implemented several vital measures.

• Club Operators must maintain a minimum contribution percentage in the Club Fund.
• Club Operators are the first to contribute capital to the Club Fund and the last to withdraw capital.
• Club Fund is ONLY ALLOWED to interact with pre-approved known smart contracts like DeX and CDP protocols to ensure all trades are at market rate.
• Club Fund can only be limited to trading Pre-approved Tokens to avoid Operator “pump & dump” with a scam token.
• The Team will initially maintain the pre-approved whitelist but later update and maintain it through voting by Club Members.
• Strictly prohibit Club Funds from transferring assets to unauthorized addresses.

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

Our solution Danogo Club brings many benefits to the whole Cardano Community:

• Bringing the real-world open-ended investment fund model to the Cardano community. By integrating this proven model, we empower Cardano users to engage in investment activities with confidence, transparency, and the potential for significant returns.

• Simplifying the complexities of DeFi, making it accessible to a wider audience. With an user-friendly interfaces, clear explanations, and streamlined processes, potential investors who lack the time and experience in the investment sector can confidently engage with this innovative landscape, capitalize on Web 3.0 investment opportunities for higher returns.

• Creating an additional playground for professional investors where they will act as Club Operators, with full transparency on investment strategy enforced on-chain to invite Club members to invest. The Club Operator will enjoy a management fee and a performance bonus if the Club Fund yields a higher return than the agreed hurdle rate.

Introducing a substantial amount of ADA into DeFi through this method has the potential to greatly increase the Total Value Locked (TVL) within 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?

We are committed to delivering our project with utmost trust and transparency, underpinned by several key factors:

• Danogo stands as a prominent figure in the DeFi space, having successfully launched the first and only Bond Dex within the Cardano Ecosystem.
• Our track record includes the development of innovative DeFi protocols such as Bond Dex and Danogo Staking Bonds, with a Total Value Locked (TVL) exceeded 4 million ADA.
• You're invited to explore our existing products at the following links:
• Danogo Bond Dex: https://app.danogo.io/bond
• Danogo Staking Bond: https://app.danogo.io/borrow
• Danogo MultiDex: https://app.danogo.io/token?
• With more than 10 years of software development experience, our team is equipped to tackle the most complex challenges.
• We adhere to Agile project management principles to ensure transparent communication, goal alignment, and accountability throughout the development process.
• Our development pipeline is standardized, featuring comprehensive documentation, code optimization, and scalability ensuring, with a focus on quality assurance through rigorous testing and official auditing.
• We highly value collaboration, feedback, and support from our users and the community. We welcome feedback, recommendations, and suggestions to continuously improve our platform and align with the evolving needs of the community.

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

(2 month) Implement and Deploy on testnet for core feature and first investment method:

• Create/Update/Manage Club
• Club List
• Deposit To/Withdraw from Club
• Staking to Pool

With these features:

• For Club Operator :
• OPs can create a Club, calculate NAV of their club
• OPs can delegate to multiple pools
• For community : View and choose to join a Club

Successful criteria:

• Number of user joined Testnet
• Number of Club & number of investors
• Number of staking transactions
• Number of feedback

(1 month) Implement and Deploy on testnet 1 more investment method:

• Swap Token

At this phase, OPs can use Fund's capital to trading tokens to get more profits

Successful criteria:

• Number of token swapping transactions
• Number of feedback

(2.5 month) Implement and Deploy on testnet more investment methods:

• Liquidity Pool/Farming
• Transaction history

At this phase, OPs can join Liquidity Pool or Farming on others DEX (such as : WingRiders, ..)

Successful criteria:

• Number of transactions joining/withdrawing from the liquidity pool
• Number of feedback

(1.5 month) Implement and Deploy on testnet 2 investment methods:

• Trading Bond
• Issue Staking Bond

At this phase, OPs can use Fund's capital to trading bonds to get more profits

Moreover, they can issue a Staking Bond to borrow Staking Right from Cardano Community

Successful criteria:

• Number of bond trading/issuance transactions
• Number of feedback

(1 month) Launch testnet incentive program

Successful criteria:

• Number of user joined Testnet
• Number of Club & number of investors
• Number of transactions
• Number of feedback/bug found

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

Do Anh Ba: Solution Architect

Do Tran Linh: Product Lead (Linkedin)

Duong Thu Huong: Project manager

Pham Tung Giang: Leading Smart Contract Developer, Off chain integrations

Nguyen Duc Thuan: Smart Contract Developer

Tran Viet Anh: Frontend Developer

Cao Nguyet Minh: Backend Developer

Nguyen Thi My Dung: Quality control

Cao Thanh An: Marketing

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

Infrastructure design and deployment: 10,000 ADA

Project management: 30,000 ADA

Engineering - Includes Software Engineering and Financial Engineering: 140,000 ADA

Smart contract auditing: 50,000 ADA

Marketing: 20,000 ADA

Total Budget: 250,000 ADA

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

A platform such as Danogo Club has the potential to completely change Cardano DeFi in several significant ways, offering substantial value to the ecosystem. Cardano stands to benefit greatly from increased liquidity and active utilization of ADA within the DeFi ecosystem, especially considering that less than 2% of circulating ADA currently engages in on-chain DeFi activities.

Many ADA holders currently choose to stake their tokens in pools as a secure investment option, yielding small returns or benefiting from airdrop tokens through ISPO. However, with the Danogo Club, the Cardano community gains access to investment opportunities tailored to individual risk preferences, potentially mobilizing billions of ADA from the sidelines to actively participate in Cardano DeFi.

Additionally, by providing transparency and accountability through on-chain operations, it enhances trust and confidence among investors, contributing to the overall credibility and sustainability of the Cardano network.