DeltaDeFi - Open Source Libraries for High Frequency Trading

[GENERAL] Name and surname of main applicant

DeltaDeFi

[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)

DeltaDeFi will develop SDKs in Python, TypeScript, Golang, and Rust, eventually a Python trading bot with demo videos & sessions to onboard HFT trading on Cardano.

[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

All materials would be on (an) open source Github repo(s) with Apache-2.0 license.

[METADATA] SDG rating

SDG 8: Decent Work and Economic Growth

• Description: By simplifying trading processes and fostering adoption from high-frequency traders (HFT), your project aims to create opportunities for economic growth within the Cardano ecosystem. Additionally, providing tools like SDKs and trading bots can empower developers and traders, contributing to job creation and skill development.

SDG 9: Industry, Innovation, and Infrastructure

• Description: Your project focuses on developing SDKs in multiple programming languages and a customizable trading bot, which aligns with SDG 9 by promoting innovation and infrastructure development within the blockchain and financial technology sectors.

SDG 11: Sustainable Cities and Communities

• Description: While not directly tied to urban environments, your project contributes to the sustainability of digital communities by fostering the growth of a vibrant and inclusive ecosystem within Cardano. The enhanced trading efficiency and increased liquidity facilitated by your tools can contribute to the sustainability of decentralized financial systems.

SDG 4: Quality Education

• Description: Through open-source contributions, detailed documentation, tutorials, and live demos, your project promotes access to quality education within the Cardano community. By providing resources and tools for learning about DeFi and trading strategies, you empower individuals to enhance their financial literacy and engage more effectively with blockchain technologies.

[SOLUTION] Please describe your proposed solution

DeltaDeFi is building for mass adoption for high frequency traders and institutional investors. Standardization, easiness of integration are the key challenges to achieve mass adoption. Recognizing these challenges, we propose a two step solution:

1. SDK Development: We will develop robust SDKs in Python, TypeScript, Golang, and Rust. The SDKs will be tailored to meet the requirements of developers within the ecosystem, enabling them to efficiently integrate with DeltaDeFi, onboard them to the Cardano DeFi ecosystem. Our SDKs will have full documentation and examples, all hosted in open-source repositories on GitHub or documented thoroughly on GitBook.
2. Trading Bot Development: On top of the SDKs, we plan to collaborate with professional traders to design and develop a customizable trading bot in Python (the language used by most quant traders). This bot will allow users to implement and modify trading strategies easily. We will provide detailed guides on deploying these bots, ensuring that users can operate their bots effectively and securely.

After the tools are built, we would prepare demo materials, so as to onboard new users with least friction (without knowing all the Cardano technical details), fostering adoption of Cardano blockchain.

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

Enhanced Trading Efficiency: 

By providing SDKs in multiple programming languages, we make it easier for developers to create and deploy applications tailored to Cardano, thus fostering a richer ecosystem. The trading bot further enhances this by automating trading strategies, allowing both novice and experienced traders to optimize their trading activities efficiently.

Increase user adoption: 

By lowering the entry barriers with well-documented SDKs and tools, we anticipate attracting more developers, high frequency traders and investors to the Cardano ecosystem. 

Improved Liquidity: 

Feasibility of HFT can enhance liquidity on Cardano's DeFi. Higher liquidity reduces slippage, minimizes transaction costs, and makes the network more attractive for large volume trading, which is beneficial for all market participants.

Open source Contribution and Education: 

By providing resources and tools such as detailed documentation, tutorials, and live demos, we empower community members to engage more with DeFi applications.

[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 strongly committed and experienced members, providing all required skill sets and expertise to successfully implement the proposed solution

Trust and accountability:

• Track record on Cardano ecosystem participation
• Team members have a track record of contributing in Cardano open source such as Mesh feature improvement, research Cardano techniques with sharing on Gimbalabs.
• Leverage the team's blockchain and financial tech expertise
• Team members are professionals across a spectrum of industries, including banking and finance, cyber security and software engineering, with chartered status with different professional bodies.

Approach validation

• Market validation conduction with HFTs
• Our team gets direct connections with multiple hedge funds with AUM up to billions of dollars, where we conduct product interviews and get validations on how the approach could solve their major pain points trading on decentralized networks.

Technical approach feasibility research

• F11 research on Cardano smart contract and transaction logic is performed and validated that the transaction logic is feasible on the blockchain layer.
• Collaboration with Cardano infrastructure providers
• The team would collaborate with infrastructure providers such as Maestro to validate the proposed solution has no technical blockers on an infrastructure point of view

Previous interviews, workshops, and activities: 

https://twitter.com/GoMaestroOrg/status/1770853383559106806

https://twitter.com/_MrHunt_/status/1777370848673902929

https://twitter.com/SIDANWhatever/status/1768592384185811205

https://twitter.com/sidan_lab/status/1777377206274249038

https://twitter.com/_MrHunt_/status/1788228931591540959

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

Milestone 1: Proposal onboarding and project management setup

Objective: Proposal onboarding, assembling the team, and defining project management practices.

Activities:

• Confirm core team members and advisors.
• Establish project management tools.

Acceptance Criteria & Evidence:

• Public announcement on core team members and advisors.
• Project management tools and systems set up.
• Successful project onboarding on project catalyst

Milestone 2: Python & Typescript SDK (1 Month)

Objective: Develop and publish DeltaDeFi SDKs in Python and Typescript, with full documentation

Activities:

• Develop the Python SDK
• Prepare and publish the documentation on Python SDK
• Develop the Typescript SDK
• Prepare and publish the documentation on Typescript SDK

Acceptance Criteria & Evidence:

• Published Python SDK with open source Github repository
• Full Github or Gitbook documentation on Python SDK
• Published Typescript SDK with open source Github repository
• Full Github or Gitbook documentation on Typescript SDK

Milestone 3: Golang & Rust SDK (1 Month)

Objective: Develop and publish DeltaDeFi SDKs in Golang and Rust, with full documentation

Activities:

• Develop the Golang SDK
• Prepare and publish the documentation on Golang SDK
• Develop the Rust SDK
• Prepare and publish the documentation on Typescript SDK

Acceptance Criteria & Evidence:

• Published Golang SDK with open source Github repository
• Full Github or Gitbook documentation on Golang SDK
• Published Rust SDK with open source Github repository
• Full Github or Gitbook documentation on Rust SDK

Milestone 4: Design of Trading Bot

Objective: Design and architecture of a trading bot

Activities:

• Establish collaboration with (a) professional trader(s)
• Research and design basic trading strategy
• Design the trading bot in a pattern where user can easily amend the strategy
• Design the recommended bot running method and example cloud deployment methods

Acceptance Criteria & Evidence:

• Announcement of partnership with a professional trader(s)
• Full documentation on the logic of trading bot, how to customized for proprietary trading strategy
• Description on expected user experience on how to run the trading bot

Milestone 5: Development of Trading Bot in Python

Objective: Develop the publish the trading bot package in Python, with full documentation

Activities:

• With the aid of the professional trader(s) in partnership, develop of the trading bot in Python
• Prepare and publish the documentation on the trading bot
• Prepare the example deployment scripts to any one of the clouds (e.g. AWS, GCP etc)

Acceptance Criteria & Evidence:

• Open source trading bot package source code in Github
• Full developer documentation on Python trading bot
• Working deployment scripts

Final Milestone: DeltaDeFi Trading Bot Demo

Objective: Prepare a set of materials to demo the usage of trading bot

Activities:

• Prepare a video on how to use the trading to trade on DeltaDeFi
• Host live session to demonstrate the exact flow of using trading bot to trade on DeltaDeFi
• Prepare the project close-out report and video

Acceptance Criteria:

• A public video to walk through the usage of DeltaDeFi trading bot
• A recording of public session of trading bot demonstration
• Publicly available project close-out report and video

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

A Hong Kong based Interdisciplinary team.

To ensure that we do not only provide deep and profound knowledge and expertise within the Cardano ecosystem, but also include professional expertise from outside the ecosystem, we have assembled a team of mixed skills and Interdisciplinary experts from both sides, the Cardano Ecosystem as well as from the financial industry in Hong Kong (HK).

Tier 1 - Proposal Leads (The group responsible and in charge of implementing the proposal)

Jackal Leung - Software Engineer

• Over 5 years in full-stack development in creating comprehensive software solution that encompass both front-end and back-end components
• Extensive experience in high-frequency system architecture design and infrastructure development.
• Worked and contributing in a leading FinTech unicorn (Welab bank) in HK
• LinkedIn: https://www.linkedin.com/in/jackalleung/ 

Anson Chui - Cybersecurity Engineer

• Cybersecurity engineering work experience at Huobi, Hex Trust, and Deloitte
• Extensive experience in implementing and monitoring security controls to ensure system hardening, resilience, and integrity of mission critical systems
• Certified Information Systems Security Professional (CISSP) & Certified Information Systems Auditor (CISA) & AWS Certified Solutions Architect
• LinkedIn: https://www.linkedin.com/in/anson-chui-219816158/ 

Hinson Wong - Smart Contract Engineer

• Team member of Gimbalabs, driving Hong Kong community
• Key contributor to MeshJS, a Cardano SDK for DApp development
• Lead developer at Cardano Name Service (CNS)
• Extensive network with Hong Kong based hedge funds and individual HFTs
• Ex-Citi, Chartered Financial Analyst (CFA)
• LinkedIn: https://www.linkedin.com/in/hinsonwong/
• Github: https://github.com/sidanwhatever 

Neal Lam - UIUX & Media Designer

• Digital & Virtual Banking UIUX design experience at Livi bank
• Branding design experience
• Animation designer of a Hong Kong Key Opinion Leader (KOL) - mingjai (653K subscriber, Top 5 KOL in Hong Kong)
• LinkedIn: https://www.linkedin.com/in/neallam/ 

Tier 2 - Proposal Support & Advisory (A supportive layer to advise and consult the Proposal Lead)

Kinson Cheung - Cardano Ecosystem & HFT Advisor

• HK Cardano Community Organiser
• Head of Incubation at Adaverse
• Experience in product marketing
• Extensive network with institutional traders in UK

LinkedIn: https://www.linkedin.com/in/kinson-cheung-166979103/

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

Milestone 1:

Activities:

• ADA 25,000 - Confirm core team members and advisors.
• ADA 5,000 - Establish project management tools.

Total budget: ADA 30,000

Milestone 2: Python & Typescript SDK (1 Month)

Activities:

• ADA 10,000 - Develop the Python SDK
• ADA 5,000 - Prepare and publish the documentation on Python SDK
• ADA 10,000 - Develop the Typescript SDK
• ADA 5,000 - Prepare and publish the documentation on Typescript SDK

Total budget: ADA 30,000

Milestone 3: Golang & Rust SDK (1 Month)

Activities:

• ADA 10,000 - Develop the Golang SDK
• ADA 5,000 - Prepare and publish the documentation on Golang SDK
• ADA 10,000 - Develop the Rust SDK
• ADA 5,000 - Prepare and publish the documentation on Typescript SDK

Total budget: ADA 30,000

Milestone 4: Design of Trading Bot

Activities:

• ADA 15,000 - Establish collaboration with (a) professional trader(s)
• ADA 5,000 - Research and design basic trading strategy
• ADA 5,000 - Design the trading bot in a pattern where user can easily amend the strategy
• ADA 5,000 - Design the recommended bot running method and example cloud deployment methods

Total budget: ADA 30,000

Milestone 5: Development of Trading Bot in Python

Objective: Develop the publish the trading bot package in Python, with full documentation

Activities:

• ADA 40,000 - Develop of the trading bot in Python
• ADA 5,000 - Prepare and publish the documentation on the trading bot
• ADA 5,000 - Prepare the example deployment scripts to any one of the clouds (e.g. AWS, GCP etc)

Total budget: ADA 50,000

Final Milestone: DeltaDeFi Trading Bot Demo

Activities:

• ADA 10,000 - Prepare a video on how to use the trading to trade on DeltaDeFi
• ADA 10,000 - Host live session to demonstrate the exact flow of using trading bot to trade on DeltaDeFi
• ADA 10,000 - Prepare the project close-out report and video

Total budget: ADA 30,000

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

Scalable Tools with low development cost: 

The SDKs and trading bot are designed to scale with the ecosystem and support its growth. These tools will serve users and builders, catering to their requirements while saving them development cost

Open Source Availability: By making all our developments open source, we ensure that the Cardano community can access and utilize these tools without barriers. 

Investing in high-frequency trading (HFT) infrastructure offers substantial value to Cardano by driving higher adoption among institutional and professional traders, amplifying liquidity within Cardano’s Defi ecosystem, reshaping Cardano as the premier destination for cutting-edge trading. These advancements elevate Cardano DeFi's maturity and market competitiveness, propelling it to the forefront of the industry.