OTOKEN System - Yield Bearing Token System for Cardano DeFi

[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)

Developing OTOKEN Framework, a suite of modular smart contracts to enable synthetic tokenization of CNTs designed to enhance stability and optimize yield of base asset.

[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 dependancies

[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

MIT License

[SOLUTION] Please describe your proposed solution

The OTOKEN Framework is for DeFi teams, builders, and anyone in the community who wants to take a CNT and structure composable yield aggregation, risk trancing, and yield enhancement via simple creation of synthetics of underlying CNTs.

The OTOKEN Framework introduces a robust system of accounting and management for digital assets, centered around OTOKENs. These tokens serve as a liability and accounting mechanism, enabling advanced financial operations like yield optimization and stability enhancements through algorithmic market operations (AMOs). The core of the system includes modules for staking, deposits, and collateral management, which can be extended with sub-AMOs tailored to specific needs, such as DEX operations and stake auctions. This modular design allows for flexibility and adaptability to changing market conditions.

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

The introduction of the OTOKEN Framework will bring more stability and efficiency to the DeFi space on Cardano. By providing tools for better asset management and yield optimization, it will attract more users and developers to the platform, enhancing overall liquidity and financial innovation. The framework's flexibility allows for the creation of customized solutions that meet diverse needs within the ecosystem.

[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?

Optim Finance has notably achieved a substantial milestone with the successful launch of a functional dApp, achieving top 5 TVL on Cardano. We’ve safely handled nearly 150 million ADA on our dApp in the past year. Our inaugural product, Liquidity Bonds, an innovative addition to the DeFi landscape, distinguishes itself by its uniqueness within the crypto space. This accomplishment underscores the team's capacity for not only conceiving but also effectively implementing groundbreaking DeFi solutions.

The team's ability to introduce novel financial instruments showcases a forward-thinking approach that contributes to the diversification and enrichment of the broader DeFi ecosystem, transcending conventional paradigms.

Critical to Optim Finance's achievements is its strategic alignment with Cardano's unique capabilities. By leveraging the distinct features of the Cardano blockchain, the team has demonstrated not only the conceptualization of pioneering products but also the agile and cost-effective deployment of these solutions. Optim’s track record underscores the team's adeptness at leveraging Cardano's strengths and showcases the efficient delivery of DeFi solutions.

The team's proven ability to innovate, design, and swiftly deploy DeFi products meets the evolving needs of the decentralized finance landscape, solidifying their role as leaders in the ongoing narrative of DeFi innovation.

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

OToken system design specification that details the components, system modularity, functions, and extensibility.

Output: Gitbook Design Spec

Guidelines and financial design spec for building yield bearing tokens on Cardano with the system outlining considerations, suggested use cases, and modeling scenarios and best practices for managing reserve assets.

Output: Gitbook Financial Engineering OTokens Guide

Educational and Marketing materials for the community outlining OToken Framework.

Output: Medium article, Instructional Video with component walkthrough

Code complete and open sourced for community review.

Output: Github repo

Code revision and improvement with documentation on changes and improvements based on feedback.

Output: Github repo with report on changes

Full, complete, open source code with 20K USD worth of ADA (current market price at time of bounty) bug bounty.

Outputs: Github Repo

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

Ethan - Product lead

Zygomeb - Tech lead

Experience - Minswap, MLabs, IOHK

Consistently delivered/shipped high quality DeFi protocols to mainnet

Clear track record of successfully delivering dApps that are widely adopted

Website: https://www.optim.finance/ 

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

Design & Documentation: 75K

Education & Marketing: 25K

Software engineering: 200K

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

The investment in the OTOKEN Framework delivers exceptional value for the Cardano ecosystem by providing advanced, scalable financial infrastructure tools that are crucial for DeFi innovation. By enhancing asset stability and optimizing yield, this framework directly contributes to the attractiveness and functionality of Cardano as a competitive DeFi platform. Furthermore, the modular design allows for continuous adaptation and improvement, ensuring long-term sustainability and relevance in a rapidly evolving market.

With this framework, we anticipate a marked increase in on-chain activity as it enables more secure, efficient, and flexible financial operations. This, in turn, will attract a broader range of developers and investors to the ecosystem, which is essential for growing the network's value and utility. The increased liquidity and improved financial services will also boost user engagement and retention, creating a more vibrant and robust Cardano community.

Overall, the relatively modest cost of developing the OTOKEN Framework is poised to yield high returns through enhanced ecosystem growth, increased user adoption, and the establishment of Cardano as a leading platform for DeFi activities. This framework not only supports current users and developers but also lays the groundwork for future innovations that can leverage its open, adaptable infrastructure.