Plutarch DEX DeFi MVP smart-contract functions Audit & Bug Bounty

[GENERAL] Name and surname of main applicant

Catalyst Rider

[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

265000

[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)

We aim to build on our Proof of Concept by developing an MVP for WingRiders DEX V2, enhancing performance and reducing fees, with security ensured through an external audit and bug bounties.

[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 WingRiders V2 DEX written in Plutarch will be in an open-source GitHub repository making it publicly accessible.

Type of license: MIT

[SOLUTION] Please describe your proposed solution

WingRiders is developing a new version (V2) of the WingRiders DEX from existing proof of concept. We will use Plutarch, which allows it to maximize performance efficiency, optimize script size, and significantly lower transaction fees. Deploying a new version also unlocks possibilities that came with the PlutusCoreV2, like reference scripts, whose usage lowers the transaction congestion (due to the V1 scripts having to bundle the script in each transaction). This ultimately translates into higher throughput and an option to fit in additional DeFi features.

A Proof of Concept of the DEX V2 application is available at the link 1 in section General Links

It is a web application where users can interact with our V2 smart contracts, this includes:

• View list of liquidity pools
• Create a Swap request
• Create an AddLiquidity request

WingRiders seeks funding to evolve our PoC into a fully functional MVP, introducing significant performance upgrades and new features. Due to the complexity of our smart contracts and the specialized nature of Plutarch DSL, we are also requesting funds to contract an external audit and launch a public bug bounty. This dual approach will provide critical security assurances for our advanced DeFi platform managing substantial assets.

The impact of the proposal will be demonstrated through the usage of the V2 MVP application, public audit findings report, and a bug bounty campaign.

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

Value to the Cardano Community:

• MVP Features: WingRiders V2 DEX MVP brings performance improvements and additional features to existing PoC and previous version of the DEX, which will attract more liquidity to the Cardano ecosystem
• Increased Throughput: Usage of Plutarch allows us to write highly performant low-level code, making the last generation of DEXes obsolete.
• Increased Trust: An audit accompanied by a public bug bounty should act as an additional "stamp of quality".
• Open-Source Codebase: A new high-quality successor of the previous-generation DEX will be open-source. Not only does it increase transparency, but it also may serve as a Plutarch learning material.
• Harnessing PlutusCoreV2 features: Upgrading to a new, superior version, that uses reference scripts, renders the previous generation based on PlutusCoreV1 obsolete - lowering transaction clutter (no need to bundle scripts in the transactions anymore).

Measuring Impact:

• Quantitative Measures: We will track the number of users, swaps, liquidity provisions and other important metrics. A comparison of V1 and V2 performance throughput will be measured and provided. We will also collect user feedback through surveys and feedback mechanisms.
• Qualitative Measures: We will monitor the dApp usage and user testimonials to guide further refinements. The audit and bug bounty will provide invaluable feedback in terms of security, which findings we will implement to ensure DEX safety.

Sharing Outputs and Opportunities:

• Community Engagement: We will maintain an active presence in Cardano community forums and social media platforms, sharing updates and engaging with users and developers.
• DEX V2 MVP: The DEX V2 MVP application will be publicly accessible to everyone.
• Audit Findings: Audit findings will be shared with the public for everyone to see.
• Bug Bounty: We will actively report on the status of the bug bounty.
• Plutarch Learning Material: Having an open-source codebase, will benefit many developers wanting to learn Plutarch.

By adopting these strategies, our project aims to deliver tangible benefits to the Cardano community, ensuring our outputs are effectively utilized and contribute positively to the ecosystem's growth.

[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?

As WingRiders, we have a track-proven record of developing within the Cardano ecosystem. Over the years we’ve shown to be at the forefront of technological advancements when it comes to DEXes and Cardano in general. We were the first ones to bring support for Stableswaps, have a fully on-chain DAO governance, and recently launched the first trustless non-custodial launchpad. Created a lot of open source tooling and continues to push the edge of what is possible with the Cardano chain evolving. Regarding fund management, we adhere to rigorous protocols ensuring robust financial stewardship and accountability. Our practices encompass the maintenance of transparent financial records, periodic internal audits, and strict compliance with financial reporting standards. We understand the imperative nature of prudent fund management and commit to upholding the highest standards of fiscal responsibility throughout the project's lifecycle.

As an evidence, we have 2 Catalyst proposals from F10 and F11 in progress. Both are being delivered according to the milestone schedule and budget , with Proof of Achievement submitted and approved for all completed milestones.

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

Security Audit

• Description: Initiate and complete an external security audit of the WingRiders DEX V2 MVP contracts. This will involve contracting an audit firm to perform a thorough analysis to identify and address potential security vulnerabilities.
• Expected Timeline: 2 months
• Outputs: An audit finding actions taken report, published on WingRiders' social platforms.
• Acceptance Criteria: All identified vulnerabilities are resolved, and the audit report is made publicly available.

Issue Resolution

• Description: This milestone is dedicated to addressing and resolving the security issues identified in the external audit. 
• Expected Timeline: 1 month.
• Outputs: Updated and secured smart contracts with a comprehensive report detailing the changes made and issues resolved.
• Acceptance Criteria: All identified vulnerabilities from Milestone 1 are addressed, with documentation provided for each action taken to rectify these issues.

Turning our PoC application into an MVP

• Description: Transition the existing PoC into a fully functional MVP for WingRiders V2 DEX. This involves refining smart contracts, enhancing performance, and implementing other features.
• Expected Timeline: 2 months
• Outputs: A public website with the MVP application that has all core DEX features. This includes: creating and reclaiming requests (swap, add liquidity, withdraw liquidity), batching requests, and creating liquidity pools
• Acceptance Criteria: All features are operational and thoroughly tested.

Bug Bounty

• Description: Run a public Bug Bounty campaign for an additional security guarantee and resolve findings.
• Expected Timeline: 1 month
• Outputs: A public document breaking down the Bug Bounty details shared on WingRiders socials. A report on the Bug Bounty status on the WingRiders socials.
• Acceptance Criteria: All bug bounty findings are resolved and a report is posted.

Final Completion Report and Video

• Description: This milestone focuses on the creation of a final report and a video showcasing the project.
• Expected Timeline: 2 weeks
• Outputs: A detailed final report documenting the project's journey, challenges, solutions, and benefits. A professionally produced video showcasing the WingRiders DEX V2, complete with voiceover narration.
• Acceptance Criteria: Completion of a thorough and reflective final report. Video that effectively showcases the project.

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

WingRiders engineering team is composed of experienced professionals in blockchain technology and software development. Our team members stand behind projects like Adalite, Yoroi wallet, Emurgo’s first blockchain explorer/indexer, firmware for hardware wallets Trezor and Ledger (bringing them to Cardano), and a whole plethora of FinTech products.

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

Milestone 1: Security Audit

• Milestone Budget: ₳ 97,000
• Resource MDs: 
• Software engineer (senior & junior):  7
• Auditors: 50
• Project manager: 2

Milestone 2: Issue Resolution

• Milestone Budget: ₳ 59,000
• Resource MDs: 
• Software engineer (senior & junior): 40
• Project manager: 3

Milestone 3: Turning our PoC application into a MVP

• Milestone Budget: ₳ 75,000
• Resource MDs: 
• Software engineer (senior & junior): 59
• Project manager: 5

Milestone 4: Bug Bounty

• Milestone Budget: ₳ 26,000
• Resource MDs: 
• Bounty hunters: 26
• Marketing: 1
• Project manager: 1

Milestone 5: Final Completion Report and Video

• Milestone Budget: ₳ 8,000
• Resource MDs: 
• Software engineer (senior & junior):  3
• Marketing: 5
• Project manager: 1

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

The project's cost is carefully calculated to ensure value for money for the Cardano ecosystem. Here’s how we justify the cost:

• Audit Costs: When selecting an auditing firm we are primarily looking for a proven track record, which you can not make any compromises on. For the audit firm selection, we always conduct an RFP (Request for Proposal), carefully evaluating the audit firm's experience, audit approach, effort estimates, and cost, upon which the final selection is made. During the RFP process, price negotiations are conducted to achieve the best price possible.
• Bug Bounty: Running a Bug Bounty does not only increase trust in one of the upcoming Cardano DEXes but also gives back to the community in the form of rewards.
• Documentation and Educational Materials: Open-sourcing the whole Plutarch code-base provides Cardano developers with additional learning materials and public audit findings can also act as an additional learning material.
• Increased transparency and trust: One of the most looked-at metrics in blockchain networks is the TVL. The user trust in WingRiders V2 DEX smart contracts will increase based on the public audit and bug bounty and will possibly also attract additional liquidity.