Adding Leverage to DexHunter

[GENERAL] Name and surname of main applicant

Nikita Melentjevs

[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)

Allowing leverage trading using lending protocols to simplify the UX of trading as well as enabling easier longing and shorting of assets.

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

Yes

[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.”

We would utilize an existing lending/borrowing protocol to enable the longing and shorting of assets with our swap infrastructure.

[GENERAL] Will your project’s output/s be fully open source?

No

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

It would already use open-source contracts; if required to build an additional contract, we would open-source it.

[SOLUTION] Please describe your proposed solution

Developing a simplified interface and infrastructure for longing and shorting Cardano native assets for leveraged trading through dynamic lending and borrowing pools on Cardano, enhancing secure and transparent trading experiences.

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

Positive Community Impact:

1. Deepening DeFi Integration: The introduction of leveraged trading through lending and borrowing pools will deepen the DeFi market on Cardano, providing more sophisticated financial tools.
2. Increased Adoption and Engagement: The protocol will attract more users and developers to the Cardano ecosystem by offering advanced trading mechanisms, enhancing its vibrancy and adoption.
3. Educational Opportunities: The project will include comprehensive educational content to help users understand and utilize leveraged trading safely and effectively.

[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 previous experience developing DeFi applications, such as the biggest Cardano DEX Aggregator DexHunter. We'll conduct alpha and beta testing phases to validate our approach, with ongoing community feedback and audits.

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

Preparation

Duration: 1 month

Outputs:

1. The Project Plan is formalized in the document with all of the features, technical components, and interfaces that are needed to deliver the project
2. Specification for all the technical components of the project: backend, interfaces

Acceptance criteria:

1. The project plan is published in the form of a roadmap of the public resources of the future project
2. The specification for each technical component is published as a markdown file to each related open GitHub repository

Off-chain business logic for order execution

Duration: 3 months

Outputs:

1. The off-chain codebase which serves as an execution engine to execute perpetual orders

Acceptance criteria:

1. The off-chain code base is covered with tests
2. The off-chain is developed according to the specification
3. The off-chain works as expected

API development

To display proper protocol data in the interface, the in-house API is required

Duration: 2 months

Outputs:

1. A codebase for the API is written according to the specification from Milestone 1

Acceptance criteria:

1. The API code base is covered with tests
2. The API consists of endpoints that were mentioned in the specification
3. The API works as expected

Interface

Duration: 2 months

Outputs:

1. A user-friendly interface is developed based on the project plan and interface specifications from Milestone 1.
2. The interface is visually appealing and responsive and provides seamless interaction with the smart contracts and API.

Acceptance criteria:

1. The interface is tested for usability and functionality.
2. The interface design adheres to the specifications outlined in Milestone 1.
3. User feedback is gathered and incorporated for improvements.

Final Milestone:

Duration: 1 month

Outputs:

1. The closing video summarizes the project journey, features, and functionalities.
2. The video demonstrates vital aspects such as smart contract execution, off-chain order processing, and API integration.
3. The video highlights the project's achievements, challenges overcome, and future plans.

Acceptance criteria:

1. The closing video effectively communicates the project's purpose, goals, and outcomes.
2. The video is well-edited, engaging, and suitable for public sharing.
3. Stakeholder feedback is considered for any necessary revisions to the closing video.

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

CEO https://www.linkedin.com/in/nikita-melentjevs/

Project lead, business, and partnership development

Blockchain Lead https://www.linkedin.com/in/edoardo-carlo-salvioni/

Blockchain and backend development

UI/UX Lead Designer

https://www.linkedin.com/in/igor-konecky/

Interface design

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

Revised Budget and Costs:

Milestone 1: Preparation of Lending and Borrowing Framework

• Outputs: Detailed specifications for lending and borrowing mechanics, governance protocols.
• Cost Estimate: 18% of total budget (69,300 ADA)
• Planning and documentation
• Technical Writers and analysts for market research
• Initial community engagement and feedback mechanisms

Milestone 2: Development of Lending and Borrowing Smart Contracts

• Outputs: Fully developed smart contracts for pool management and interest calculations.
• Cost Estimate: 35% of total budget (134,750 ADA)
• Salaries for smart contract developers
• Security audit fees
• Development tools and testing frameworks

Milestone 3: Integration with Trading Interfaces

• Outputs: User-friendly interfaces for interacting with lending and borrowing pools.
• Cost Estimate: 28% of the total budget (107,800 ADA)
• Frontend development costs
• UX/UI design tools and services
• Usability testing and interface optimization

Milestone 4: Testing and Deployment

• Outputs: Comprehensive testing and public deployment of the protocol.
• Cost Estimate: 19% of total budget (73,150 ADA)
• Backend development for order execution logic
• Integration testing with continuous integration services
• Deployment costs and initial liquidity provisions for testing

Additional Costs:

• Unforeseen Costs: Approximately 10% of the total budget (38,500 ADA) is reserved for unexpected expenses, adjustments based on testing and deployment feedback, and emergency funds to address any critical issues that may arise during the project lifecycle.

Third-Party Products/Services:

• Software licenses for development tools
• Professional services for legal and accounting needs
• Cloud services for hosting and data management

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

The cost is justified by the potential to significantly enhance Cardano's DeFi ecosystem, drawing in new users and developers, and showcasing the capabilities of Cardano's smart contract platform.