OADA Leverage / Borrowing dApp | efficient leverage 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)

OADA Leverage will be a core module of the OADA Ecosystem enabling algorithmic leverage via OADA secured w/ new collateral types. Proven in other ecosystems, it will help address lack of DeFi activity

[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 open source license

[SOLUTION] Please describe your proposed solution

When looking at the broad spectrum of unique and innovative lending protocols that can be built in DeFi ecosystems, algorithmic leverage protocols that can take unique collateral and safely provide users leverage via synthetics is an important and broad product space.

Our project will engage DeFi enthusiasts looking to trade with more leverage and size than they currently have access to. Robust DeFi ecosystems enable this to allow efficient markets that help can balance information asymmetries by enabling all participants to take large directional positions with more ease.

We're approaching OADA Leverage with our specific framework because of the capital efficiency and system composability of OADA.

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

Our project will increase DeFi usage with more efficient leverage and contribute to network and protocol tx fees in the process.

We will measure and report/share the amount of txs, fees, TVL, and trading activity facilitated by OADA Leverage.

[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?

OADA Leverage protocol system design specification that details the components, system modularity, functions, and core code modules.

Output: Gitbook Design Spec

Financial design spec for building leverage system outlining considerations, parameters (high stress scenarios), and modeling scenarios for managing system synthetic assets.

Output: Gitbook Financial Design Spec

Educational and Marketing materials for the community outlining OADA Leverage protocol

Output: Medium article, Instructional Video with component walkthrough, public facing user tutorial

Initial Aiken code completion ready for review and audit.

Oputput: Github repo of complete code base

Detailed technical spec for auditors mapping functionality and design onto codebase to prepare for audit. Begin audit.

Output: Confirmation of code freeze and audit beginning by 3rd party reputable firm

Full test net deployment of audited code base

Output: Link to testnet deployment

[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 & spec: 100K

Marketing & education: 50K

Software engineering: 300K

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

A system such as OADA Leverage has the potential to completely change Cardano DeFi in a number of meaningful ways. The value provided to the ecosystem is enormous. Cardano needs unique DeFi primitives that go beyond new and improved ways of swapping tokens.

To improve the robustness, interoperability, and usage of the OADA, OADA Leverage is both useful as a product and a driver of adoption for an important Cardano DeFi primitive.

Cardano needs increased liquidity and to put ADA to work in the DeFi ecosystem. Less than 2% of all ADA circulating now participates in DeFi on-chain. OADA shows great potential to change this.

Many ADA holders large and small want a safe place to enjoy passive yield. The more utility for OADA the better it will function in the ecosystem.

We've seen nearly 150 Million ADA enter Optim's Liquidity Bonds, only constrained by the number of borrowers. A robust OADA ecosystem makes it feasible to bring hundreds of millions of ADA off the sidelines to participate in Cardano DeFi.

The Optim team has shown its ability to design and ship new DeFi primitives that people actually use. This has been delivered in an efficient and cost effective manner. We will continue to provide value to the ecosystem. A few hundred thousand US dollars is a tremendous value, especially in light of the countless millions given to projects that have failed to find product market fit or release products that increase on-chain activity.