MAYZ Cardano Index Funds: Escrow Smart Contracts

[GENERAL] Name and surname of main applicant

Federico Ledesma

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

Entity (Not 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)

Enhance user participation in MAYZ Protocol Cardano Funds by simplifying the process using new Escrow Contracts, allowing users to deposit only a portion of the Fund's tokens. 

[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

Project will be fully open source. The code will be available on GitHub. All our smart contracts to develop indexes in Cardano are Open Source.

https://github.com/MAYZGitHub/

MAYZ Protocol builds open-source projects to foster transparency, collaboration, and community involvement in the development of its decentralized finance solutions.

By adopting an open-source approach, MAYZ Protocol encourages innovation, improves security, and promotes widespread adoption of its permissionless platform for creating and managing investment funds on the Cardano blockchain. 

This approach aligns with the decentralized and community-driven nature of blockchain technology, ensuring that MAYZ Protocol remains accessible and adaptable to the evolving needs of the Cardano ecosystem.

[SOLUTION] Please describe your proposed solution

A month ago, Charles Hoskinson did a video about “Liquidity and Value”, in which he explains some of the things Cardano could do to improve its liquidity. One the ways that Cardano has is to develop decentralized Index protocols. Indexes can bring value into Cardano Native tokens, creating demand for Cardano Native Tokens. According to his vision, a Cardano Vending Machine is necessary. Users of all networks can deposit Ada and other tokens in one or multiple smart contracts and that will be automatically converted to Cardano tokens.

Our Escrow Smart Contract is part of that set of smart contracts that allows users to invest in Cardano Native Tokens in an easy and decentralized way.

https://www.youtube.com/watch?v=Iu3eiX7lJyA

MAYZ smart contracts

We're building upon the existing framework of the MAYZ Protocol, enhancing its functionality, robustness, and user-friendliness

We aim to optimize user engagement by integrating novel functionalities, specifically the Escrow Contract, into the MAYZ Protocol. This enhances the potential of the existing protocol and pathways to acquire Fund Tokens (FT), which represents a share of the diversified portfolio in a fund created by the MAYZ Protocol

Our project seeks to facilitate a more inclusive and dynamic interaction with the protocol. It is designed to engage various participants in the Cardano ecosystem. We aspire to streamline their interaction with the protocol and provide them access to a diversified portfolio of Cardano native tokens. 

The importance of this proposal to Cardano is manifold. It resonates with Cardano's ethos of decentralization and community engagement. It brings a novel, user-centric perspective to the ecosystem's growth and is a potential blueprint for future developments within the Cardano blockchain. Ultimately, it aims to position Cardano as a more appealing option within the DeFi sector, driving its adoption and reinforcing its place as a critical player in decentralized finance.

The solution

At the core of our proposal are the Escrow Contracts. They will offer an alternative and efficient way to acquire Fund Tokens (FT). They are designed to aid users who may not possess all the necessary tokens to deposit into the fund directly. This facilitates broader user participation within the fund.

The users will be able to create an Order in the contract and send any amount of some of the tokens that make up the index they are trying to acquire. The community plays a crucial role in our system. Those who create Escrow Orders will leave a fee that can be claimed by others in the community who fulfill these orders, either partially or entirely, giving back their own FT in exchange of the locked Tokens and the Fee. This fosters a spirit of cooperation and incentivizes active participation within the ecosystem.

By the time of fulfilling an order the user doing so will sell its FT tokens at market price, and will get the Tokens offered, at market place, at the moment of the realization of this conversion/trade. For this Oracle prices will be fetched. The creator of the order will be also able to set a minimum acceptable price in ADA that he is willing to accept for the sale. We'll design this contract to interact with a robust and existing oracle data feed that we developed for the Mayz Protocol, providing the accuracy necessary for users to make informed trading decisions.

The escrow orders will create a new pathway for users to participate in Mayz’s Funds. It will complement the existing Swap Offers that are already implemented, which allows users to trade FT by ADA and vice versa. 

By making acquiring Fund Tokens more accessible and creating an array of trading opportunities, we anticipate that our system will stimulate a community effort to maintain an adequate supply of orders to meet demand. The vibrant exchange environment thus created will foster a sense of community, drive user participation, and underpin the success of our proposal. This holistic, community-focused approach is a crucial feature of our project, reflecting our commitment to building a truly inclusive and engaging ecosystem.

Our implementation strategy for incorporating Escrow Contracts within the MAYZ Protocol is highly detailed, from oracle integration to contract versioning. In the technical realm, implementing Escrow Contracts within the MAYZ Protocol will involve significant work in both backend smart contract development and frontend user interface (UI) design.

Regarding the REST API, we'll build a robust interface to facilitate smooth communication between the front end, the smart contracts, and the oracle data feeds. This will involve developing a comprehensive set of endpoints that allow for secure and efficient interactions with the contracts. Each endpoint will be designed with a specific function in mind, ensuring that every aspect of the user experience, from creating an order to filling one, is handled seamlessly.

An innovative aspect of our approach is the focus on contract versioning. Unlike traditional version control systems that primarily deal with source code, our versioning system caters to smart contracts. This means we'll be creating an ecosystem where multiple versions of the contracts can coexist, and the user interface and the API can interact with any of these versions in a specific, controlled manner. This unique capability provides flexibility and ensures the long-term sustainability of the platform, even as enhancements and changes are made to the contracts over time.

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

The Escrow Contracts within the MAYZ Protocol will significantly impact the wider Cardano community by providing an inclusive and efficient method for Fund Token acquisition, fostering a collaborative ecosystem.

Smart contracts will be fully open sourced and could potentially be used by other DApps that want to include this functionality.

[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 a team of experienced Haskell developers and members with a university degree in economics. Our core smart contracts are live on Testnet and have been succesfully reviewed by Tx Pipe engineers. 

Our team's diverse expertise, combined with a commitment to transparency, collaboration, and thorough validation processes, ensures that we can deliver with a high level of trust and accountability.

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

Initial version Development

• Detailed project plan; create and test the initial version of Escrow Contracts; and design an intuitive frontend UI.

Technical Integration

• Integrate the oracle data feed into Escrow Contracts for accurate pricing information; develop REST API endpoints for effective communication between front-end, smart contracts, and oracle data feeds.

Smart Contracts and Optimization

• Implement a contract versioning system for flexibility and future enhancements; conduct rigorous testing of Escrow Contracts, oracle integration, API, and frontend UI; optimize performance based on results and user feedback.

Testnet Launch

• Deploy Escrow Contracts on Testnet.

Final Report and Video Closeout

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

Development Lead Smart Contracts Architect Manuel Padilla

(Funded Proposer in F10 and F11)

A versatile and highly experienced Smart Contracts Architect, specializing in Plutus smart contract development on the Cardano blockchain.

Project Management: Agustín Franchella

(Cardano Ambassador)

Responsible for leading the project and overseeing the Cardano-based Haskell smart contract prototype development.

In charge of implementing tokenization functionality for converting fungible assets into NFTs.

Team Lead: Diego Torres 

(Funded Proposer in F11, Cardano Ambassador, Organizer of Patagonia CIP1694 Workshop)

Conducts market research to identify liquidity challenges in the Cardano ecosystem and validates the feasibility of our solution.

Provides insights into Cardano's evolving landscape and adapts our approach accordingly.

Integrations: Diego Macchi

Leads the development of the project's documentation and educational resources, ensuring clear communication of our solution's concept, architecture, and potential applications.

Collaborates with technical experts to maintain accuracy and clarity.

Technical Writer Federico Ledesma Calatayud.

(Cardano Ambassador)

Federico has a deep understanding of blockchain technology, including Cardano and Plutus, which will enable him to create comprehensive and easy-to-understand documentation for the Trustless OTC Smart Contract project.

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

Development and Project Managment - $35,000

• Project management and coordination
• Smart contract development and testing
• Frontend UI design

Technical Integration - $30,000

• Oracle integration
• API development and testing

Versioning and Optimization - $30,000

• Contract versioning system implementation
• Comprehensive testing and optimization

Launch, Promotion, Marketing - $20,000

• Deployment and marketing activities
• Community and engagement initiatives

Other expenses $2,000

ADA price 0.43 

Total ADA 267,441

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

The Escrow Contracts project will drive user engagement, promote market liquidity, and foster collaboration within the Cardano community. The value it brings in terms of ecosystem growth and adoption justifies the associated costs.