Current DEXes designs require 2 or more transactions and often intervene of third parties (batchers or offchain bots) to perform swaps.
This is the total amount allocated to Hlabs: a radically different approach for AMM swaps, trustless and deterministic (1 tx).
NB: Monthly reporting was deprecated from January 2024 and replaced fully by the Milestones Program framework. Learn more here
We propose to prototype a radically different approach to allow for AMM swaps in a single, deterministic Cardano transaction.
No dependencies.
The project will be source-available.
In the sense that the code will NOT made freely available for possible modification and redistribution.
But still the source code of the implementation will be public so that anyone will be able to verify the contract they are using.
Since Cardano had introduced
smart contracts capabilities to the protocol,
many teams have tried to build a Decentralized Exchange (DEX)
that allows the exchange of different native assets.
Since then, two main designs have been established:
Order Books and Automated Market Makers (AMMs);
but each comes with different tradeoffs,
that in some cases can not guarantee the execution of an order,
or in other cases requires (ofthen trusted) third parties
to execute them for the user.
We propose a new design
for Decentralized Exchanges based on AMMs,
that can execute swaps in a single, deterministic, transaction
without involving third parties,
thus staying trustless and permissionless.
The new design will make extensive use of the eUTxO features to make this possible
relying minimally on offchain infrastructure to perform actions on behalf of the user.
a single transaction per swap also implies a better perception of the speed that the cardano blockchain can truly ofter; showcasing the true power of the eUTxO model.
Michele Nuzzi has been part of the Cardano ecosystem at the beginning as a single stake pool operator and later as developer. In this time he wrote and still maintains numerous dependecy free typescript libraries that require a low level understanding of the Cardano protocol.
A non-exhaustive list list of some of the projects would be:
And more recently actively developing an alternative implementation of the cardano-node, thanks to previous catalyst funding.
Produce a withepaper (meant for the general public) and a yellow paper( meant for the technical reader)
Write the onchain logic
Prepare the offchain infrastructure
Produce a frontend to interact with the contracts
Close out report and video.
1) Michele Nuzzi
Additionally, Hlabs is looking to expand the team to better handle the various ongoing projects.
New personnel working on this proposal in case of approval would meet the following requirements:
Senior Typescript developer, 5 years experience, deep understanding of computer science fundamentals and with solid understanding of the different Javascript runtimes and relative main APIs
Assuming 2 engineers working for a period of 12 months, for a wage of 5750 $/month
at the current rate of exchange of about 0.46 USD per 1 ADA
we have
2 x 5750 x 12 / 0.46 = 300000 ADA.
please see "IMPACT" section above