Boosting Cardano DeFi with Real World Assets (RWAs) Yield

[GENERAL] Name and surname of main applicant

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

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Introduce a DeFi platform on Cardano for yielding RWAs, enhancing ecosystem diversity and financial inclusion.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

[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?

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

As part of the project, we will analyse several potential business models around the proposed solution. the open-source status of the project output will depend on the analysis. While the main criteria for the decision will be the impact on the wider Cardano ecosystem, it is possible that some components of the proposed solution will remain proprietary.

[SOLUTION] Please describe your proposed solution

We are proposing a proof of concept to explore the integration of yield-bearing Real World Assets (RWAs) into the Cardano DeFi ecosystem. Our aim is to demonstrate the viability of a DeFi solution where Cardano users can engage with RWAs such as real estate, private debt, factoring assets, and other tangible assets to earn yields. This approach will leverage Cardano’s secure and scalable blockchain technology to handle transactions and use smart contracts for automating investment processes.

Our project will engage with asset issuers and DeFi protocols to ensure that our proof of concept adheres to compliance standards and meets user expectations for security and usability. We plan to demonstrate the use case scenario on the Cardano Preprod Testnet and engage with the community to gather feedback and refine our approach.

By focusing on RWAs, we aim to attract a broader investor base to Cardano, enhancing the ecosystem's diversity and financial inclusivity. This proof of concept will serve as a critical step in validating the technical feasibility and market demand for a full-scale RWA DeFi platform on Cardano.

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

Our proof of concept aims to significantly boost the usage of the Cardano DeFi ecosystem by integrating yield-bearing Real World Assets, such as real estate, private debt, and factoring assets. This new asset type will not only diversify investment opportunities on the platform but also attract a broader investor base. By providing these additional avenues for investment, we anticipate an increase in the overall activity and liquidity within the Cardano ecosystem, thereby enhancing its attractiveness and utility for current and potential users.

Furthermore, our project plans to leverage existing projects and tools within the Cardano ecosystem, thus increasing their utility and exposure. By integrating with established DeFi protocols and utilizing popular Cardano tokenization and NFT Minting solutions, we aim to create synergies that enhance the overall ecosystem's functionality. This approach ensures that our proof of concept not only introduces new capabilities but also strengthens the existing infrastructure, making it more robust and versatile for various financial operations.

Lastly, through proactive community engagement, we intend to position Cardano as a leader in integrating real-world assets into blockchain technology. Our engagement strategy includes regular updates, interactive webinars, and community-driven feedback loops that will help refine and perfect the concept. By aligning our project with the community’s interests and the broader blockchain industry's trends, we aim to showcase Cardano’s innovative capabilities and its potential to revolutionize financial inclusivity and diversity on a global scale.

[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 brings together a wealth of experience in blockchain technology, financial asset management, and legal compliance. We have the expertise needed to undertake this proof of concept, focusing on the integration of yield-bearing Real World Assets into the Cardano DeFi ecosystem with an emphasis on responsibility and trust.

To explore the feasibility of our approach, we will utilize the Cardano Preprod Testnet for preliminary testing. This testing will help us gauge the initial functionality and identify areas for improvement in a less formal, yet effective manner. Simultaneously, we will consult with legal experts to ensure that our tokenization approach aligns with current regulations, aiming to preemptively address any potential legal challenges.

Community interaction is an important aspect of our development process. We plan to engage with the Cardano community through periodic updates and gather feedback through informal sessions. We are already in contact for collaboration with the cardano community (i.e. Cardano foundation, Genius Yield, Dexs) through a fund 11 funded proposal Open Source Integration of Hummingbot with Cardano for Enhanced DeFi Liquidity (projectcatalyst.io) 

This engagement will help us stay connected to user needs and adapt our solution to better fit the ecosystem.

In terms of transparency and accountability, we are committed to maintaining open communication channels. Updates will be shared regularly through available community platforms, and we will make essential documentation accessible to all. This approach is designed to build trust gradually and encourage ongoing community participation, ensuring our project remains adaptable and aligned with community feedback.

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

Research, Design & Planning (4-6 weeks)

Conduct comprehensive research and detailed design & planning for integrating yield-bearing RWAs into the Cardano ecosystem.

Outputs: 

A research document and project plan that outlines the technical requirements and the workflow for tokenizing RWAs and integrating them to a DeFi protocol.

Acceptance Criteria: 

Selection of at least three assets as tokenization candidates

Selection of a DeFi protocol for integration

Evidence: 

Link to a PDF document on GitHub

Preparation of a Yield-Bearing RWA to be Tokenized (4-6 weeks)

Select and prepare a real-world asset for tokenization that demonstrates the viability of the project concept.

Outputs: A detailed report on the chosen RWA, including its economic benefits, risk assessment, and tokenization strategy.

Acceptance Criteria: The asset is legally and technically vetted for use in the proof of concept.

Evidence: 

Link to a PDF document on GitHub

Cardano Development and Integration (6 - 8 weeks)

Integrate the necessary blockchain components on Cardano to support the tokenization and management of the selected RWA. Including Smart Contract development as necessary to fill any gap in the PoC scenario

Outputs: Testnet deployment and demonstration of the planned workflow 

Acceptance Criteria: Successful deployment and operational testing on the Cardano testnet, demonstrating the workflow as detailed in the project plan.

Evidence: 

Deployment logs, test results

Closeout and Community Engagement (4 - 6 weeks)

Compile a detailed project closeout report and produce a video that demonstrates the PoC scenario and highlights its benefits and potential impact on the Cardano ecosystem. Engage the community to gather insights and foster broader adoption.

Outputs: A comprehensive final report and a video showcasing the project's capabilities and achievements.

Acceptance Criteria:

project closeout report & video as per https://docs.projectcatalyst.io/fund-documentation/fund10-docs/funded-project-reporting-guideline/project-closeout-report-and-project-closeout-video-pcr-and-pcv 

Evidence:

A digital copy of the closeout report, accessible to stakeholders.

A video file or a link to a video hosted on a platform like YouTube or Vimeo, demonstrating the project’s features and benefits.

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

Shay Gammer - Project Lead/Manager: Shay brings a robust background in computer science and finance, adept at leveraging blockchain technologies to drive innovation. Equipped with experience from other funded catalyst projects, he is responsible for overseeing the project, coordinating efforts, managing resources, and ensuring the project's overall success.

https://www.linkedin.com/in/shay-gammer-8046966/

Anthony Jaoui - Financial Analyst: With extensive experience in economy and management, and a previous role at Ernst & Young in Geneva specializing in global mobility and remuneration strategy for multinationals, Anthony brings invaluable insight into the project. Over the last eight years, he has focused on business digitalization, particularly leveraging blockchain technology. As CEO and co-founder of SMAT, a company focused on alternative investment, Anthony's expertise will be crucial in assessing and integrating various asset types into our platform.

https://www.linkedin.com/in/anthony-jaoui/

[Cardano Smart contract developer] - The team will include a smart contract developer. Through our involvement in the Cardano ecosystem we are already in touch with several Candidates for this role

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

Milestone 1 - Research, Design & Planning - 20,000 ADA

Asset and Tokenization Research - 10,000 ADA

Team ~ 20 hours

Legal Experts ~ 5 hours

Ecosystem Research & Architectural Framework - 7,500 ADA

Team ~25 hours

Project Plan - 2,500 ADA

Project Lead ~7 hours

Milestone 2 - Preparation of a Yield-Bearing RWA to be Tokenized - 30,000 ADA

Asset Selection - 10,000 ADA

Team ~ 25 hours

Legal Framework Validation - 20,000 ADA

Team ~ 50 hours

Legal/Tokenization Experts ~ 20 hours

Milestone 3 - Cardano Development and Integration - 35,000 ADA

Adaptations of existing tools and additional Development - 20,000 ADA

Blockchain Developer ~30 hours

Service Providers ~10 hours

Hardware and services ~ 5000 ADA

Testnet deployment and validation- 12,000 ADA

Team ~20 hours

Service Providers ~5 hours

Hardware and services ~ 3000 ADA

Documentation- 3,000 ADA

Team ~10hours

Final Milestone - Closeout and Community Engagement - 15,000 ADA

Reporting - 5,000 ADA

Project Lead ~15 hours

Community Engagement - 10,000 ADA

Team ~ 40 hours

Total - 100,000 ADA

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

Our proposal requests a total of 100,000 ADA to develop a proof of concept for integrating yield-bearing Real World Assets into the Cardano DeFi ecosystem. This investment is strategically planned to ensure maximum impact and value for the Cardano community.

Efficient Use of Resources: The budget has been carefully allocated across key project stages—research, preparation, development, and community engagement—to ensure that each phase is adequately funded without unnecessary expenditures. The focus on essential activities like legal compliance, technical development, and initial community interactions ensures that the project moves forward with precision and purpose.

Leveraging Existing Assets and Technology: By building on existing Cardano technologies and protocols, we maximize the utility of current ecosystem investments. This approach not only speeds up the development process but also reduces costs associated with starting from scratch, thereby increasing the overall value derived from the budget.

Enhancing Ecosystem Value: The introduction of RWAs as yield-bearing instruments on Cardano opens up new investment opportunities and attracts a broader user base. This diversification enhances the robustness and appeal of the Cardano ecosystem, which is a direct benefit from the investment made into this project.

Community and Ecosystem Engagement: Funds allocated towards community engagement are an investment in the ecosystem’s future. By actively involving the Cardano community in the development process, we not only ensure the project aligns with user needs but also foster a sense of ownership and participation. This increases the likelihood of adoption and long-term success, further enhancing the return on investment.

This proof of concept not only promises to expand the functionality of the Cardano blockchain but also aims to establish a foundation for sustainable financial innovation. The budget is a reflection of our commitment to delivering a high-quality project that provides real, tangible benefits to the Cardano ecosystem.