Breeze - Trading Bot Framework

[GENERAL] Name and surname of main applicant

Zachary Sluder

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

Individual

[GENERAL] Requested funds in ada

174000

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

4

[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)

Provide a uniform trading bot framework to bridge the gap between DEX data providers & DEX aggregating SDKs, while using existing open-source developer tooling.

[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.”

Dexter - https://github.com/IndigoProtocol/dexter

Iris - https://github.com/IndigoProtocol/iris

While Dexter provides DEX order submission, and Iris the necessary DEX data, Breeze will leverage the two projects & provide an abstract framework for building trading bots.

As the developer of the two dependencies, maintainability will not be a problem in providing Breeze with the necessary functionality for the framework.

[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

Breeze will be publicly available allowing developers to build their own trading bots, and use TypeScript as the underlying language. Documentation will be provided on how to utilize the framework & utilities necessary for running a trading bot.

[METADATA] Horizons

Developer Tools

[SOLUTION] Please describe your proposed solution

The proposed solution is an open-source trading bot framework designed for trading on decentralized exchanges within the Cardano blockchain ecosystem. This framework will allow algorithmic traders to only worry about the strategies they want to implement, saving time & resources building a trading bot setup by scratch.

Key components & features of the proposed solution include:

• Bot Management / Strategies : Abstract the way trading bots are managed. While using Breeze, all you need to provide are your strategy files. These strategies are extendable & utilize a standardized interface in listening for live data, building orders, and grabbing DEX data.

• Backtesting : Test your strategies before trading with real funds. Strategies are provided with a mock wallet, and fake funds are used to see how your strategy performs on historic data. To visualize the historic orders, a front-end will be provided utilizing TradingView charting along with other components to visualize your strategies.

• Live Data Feeds : Strategies are automatically fed live data feeds provided by the open-source Iris DEX indexer. The Iris API will also be useable within the strategies to aid developers in grabbing the necessary data to build their own strategies.

• Auto-Cancellation : Breeze will provide functionality for 'cron jobs', including auto-cancelling lingering orders. You can provide parameters to never cancel, or cancel orders after a set time period per strategy.

• Take Profit : In addition to auto-cancellation, a job that will automatically close your trades once it becomes profitable. This can be triggered by providing a take profit percent, or ADA value.

• Risk Management : Ability to white list or black list specific tokens from being automatically traded, or determine if a trade is worthwhile. Breeze may include build-in functionality, or provide a way for developers to confirm trades before their strategies trigger orders.

• Notifications : Slack & SMS notifications can be sent out utilizing the Slack & Twilio APIs, given the necessary parameters in the Breeze instance.

• Technical Indicators : The most common indicators for technical analysis will be provided. This setup will include interfaces for trend, momentum, volatility, and volume indicators.

• Local Database : A SQLite database will keep track of all orders made from each strategy, along with your historic backtests. This will allow developers to track how each of their strategies perform, live or through making adjustments between backtests.

• Extensibility : All interfaces & entities within Breeze will be extendable to allow developers to expand the SDK for their specific needs. Examples of this are providing an interface for building your own cron jobs, or adding your own technical indicators.

• Documentation : Comprehensive documentation will be provided, offering clear guidelines on API integration, functionality, and best practices. This facilitates a smooth experience for developers and users.

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

Trading bots already exist within the Cardano ecosystem, however there is a gap in specific tooling for such projects. This project enhances the accessibility in building trading bots for new programmers, and users getting familiar with Cardano DeFi & DEX trading who may want to automate their strategies.

The collaborative and open-source nature of the Breeze tooling promotes community-driven development, encouraging developers to contribute and improve the tools continuously. This collaborative effort strengthens the Cardano community by fostering a culture of innovation, knowledge-sharing, and support.

[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?

Having previously successfully launched impactful products like Dexter & Iris DEX tooling with the Indigo team, I have a deep understanding of DEX-related data & building tools around interacting with DEXs. Over the course of my developer career, I have also built many trading bot frameworks for personal use with similar functionality.

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

Completion of framework setup, along with an extensible strategy interface for developers to plug in their own strategies. Also include feeding necessary Iris data into these strategies, & allow orders to be placed through the framework.

Outputs : TypeScript package with the ability to instantiate Breeze with a set of strategies. Each strategy is fed data provided by Iris, and allows DEX orders to be placed on the Cardano blockchain.

Acceptance Criteria : A set of user provided strategies can be loaded into Breeze, and fed live DEX data from Iris.

Expected Timeline : 6 weeks

Completion of auto-cancellation & take profit 'cron jobs', along with technical indicators & Slack & SMS notifications upon order submission.

Outputs : An Auto-cancellation process, and Take Profit process which scans orders to determine if they needed cancelled or closed out. A technical indicator interface that developers can interact with within their strategies.

Acceptance Criteria : Orders placed by Breeze are cancelled when the process reaches a specified time limit, and trades are closed out to realize their profit automatically.

Expected Timeline : 4 weeks

Completion of backtesting front-end with TradingView charts displaying the orders placed, along with the ability to trigger backtests through a connector within Breeze. The strategy interface also provides a way for developers to listen for backtests, so they can grab any needed 3rd-party data.

Outputs : Front-end written in Vue.js/TypeScript for backtesting Breeze strategies, along with a connectable websocket instantiated within Breeze for each bot instance.

Acceptance Criteria : Developers can trigger backtests from the front-end, which pulls historic data provided by Iris, and is fed into the desired strategy. Once the backtest is complete, the front-end displays the backtesting results & any orders placed.

Expected Timeline : 4 weeks

Completion of documentation for running a trading bot using Breeze, and extending the framework if the developer desires. This milestone also includes any necessary automated testing needed for open-source development.

Outputs : Open-sourced documentation links on how to utilize Breeze for trading bots, along with how to create strategy files & feed them into Breeze. Documentation will also provide a list of parameters that developers can utilize to fine-tune the framework. Screenshots of passing tests will also be included.

Acceptance Criteria : Documentation provides all necessary steps in utilizing Breeze. The project also includes automated testing to check for possible bugs that may arise during open-source development.

Expected Timeline : 3 weeks

Provide Catalyst Team with close out video displaying a trading bot utilizing the framework, along with a report of implemented functionality & link to the open-source repository.

Outputs : Video displaying Breeze running a test strategy, along with a close-out report.

Acceptance Criteria : Video is a clear representation on how Breeze runs & logs out different actions triggered by the framework.

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

Cody Butz - Developer

Zachary Sluder - Developer

This proposal is also supported by Indigo Labs, developers of Indigo Protocol. Indigo Labs has a few recent successful proposals such as the following :

Indigo Iris - https://cardano.ideascale.com/c/idea/113424

V2 Audit - https://cardano.ideascale.com/c/idea/112532

Multi-DEX SDK - https://cardano.ideascale.com/c/idea/60673

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

Milestone 1 (41,000 ₳) - Framework groundwork

• 20,000 ₳ - Initial Breeze groundwork for loading strategies, and pulling in Iris data feeds with Dexter order submissions. Set up necessary interfaces for future extensions & allowing user-defined functionality.
• 13,000 ₳ - Strategy implementations so bots can re-use functionality, and filter on relevant data feeds. This includes simplifying interactions with Iris & Dexter from Breeze.
• 8,000 ₳ - Build out the running functionality of strategies, and groundwork for automated cron jobs.

Milestone 2 (31,000 ₳) - Technical Indicators, Notifications, & Auto-Cancellation/Take Profit

• 12,000 ₳ - Implement a suite of common technical indicators, which work off of OHLCV ticks.
• 14,000 ₳ - Twilio & Slack integrations, along with tying in relevant notification triggers into the framework.
• 5,000 ₳ - Set up & test Auto-Cancellation/Take Profit jobs to automatically trigger closing orders.

Milestone 3 (44,000 ₳) - Backtesting & Vue.js/TypeScript front-end

• 16,000 ₳ - Implement backtesting runs into framework, and historic data pulling with injection into user strategies.
• 15,000 ₳ - Vue.js/TypeScript front-end to trigger & manage backtests.
• 8,000 ₳ - Build API for CRUD (Create, Read, Update, Delete) operations on backtests for front-end calls.
• 5,000 ₳ - Build connector websocket for front-end to trigger backtests. This includes setting up messaging types & client/server communications.

Milestone 4 (43,000 ₳) - Documentation, Automated Testing, E2E testing, Open-Sourcing

• 12,000 ₳ - Document Breeze setup steps, strategy creation, and backtesting API endpoints for open-sourcing. This also includes NPM repository creation/setup for publishing.
• 25,000 ₳ - Include automated testing end-to-end for Breeze framework & data injections, along with tests for different strategy setups.
• 6,000 ₳ - Manually test Breeze end-to-end to ensure bot funds are used appropriately, and framework functionality performs as expected.

Continued Maintenance (15,000 ₳)

• At least 1 year of open-source maintenance to update Breeze to work with future DEX updates.

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

• Catalyzing DeFi Growth : The Breeze framework will significantly lower the barrier to entry for users looking to automate trading strategies on Cardano's decentralized exchanges. By making it easier for traders and liquidity providers to participate, Breeze will help increase liquidity, trading volume, and overall DeFi activity.

• Support for a Wide Range of Users : Breeze is designed to cater to both novice traders and advanced developers, ensuring that the platform reaches a broad audience. For novice traders, Breeze provides simple, ready-to-use strategies and an intuitive interface. For developers, it offers a flexible and powerful tool to create advanced trading algorithms

• Long-Term Value : Once open-sourced, Breeze has the potential to drive continuous growth in the Cardano ecosystem by enhancing DeFi participation, encouraging liquidity, and providing a framework that can be continuously improved by the community at little additional cost

• Sustainability : The open-source, collaborative nature ensures ongoing improvements, making it a strategic and valuable long-term investment for the Cardano ecosystem.