Liquidity Pool Aggregator: One Platform to Provide and Manage Liquidity

[GENERAL] Name and surname of main applicant

ADA Markets

[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)

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)

We will build a unified platform where users can view liquidity pools across all Cardano DEXs, easily provide liquidity to selected pools, and manage their existing positions in one place.

[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 depend on their being dexs on Cardano to track which there are multiple of them

[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

Some aspects will be open sourced at a later date

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

On cardano we have alot of AMM dexs so liquidity provision process is fragmented across multiple platforms, leading to inefficiencies in managing positions, tracking returns, and moving liquidity where it is most effective. Users need to visit multiple platforms to find the best opportunities, add or remove liquidity, and monitor their positions. This complexity not only causes friction for new users entering DeFi but also limits the effectiveness of experienced users who want to manage liquidity across multiple DEXs efficiently.

Our Approach

Our proposed solution is a Liquidity Pool Aggregator, a unified interface that allows users to view and manage liquidity across multiple decentralized exchanges in one UI. The aggregator will provide a comprehensive view of all active liquidity pools across various AMM DEXs on Cardano, including key metrics such as total liquidity, fees, and trading volumes.

Through our platform, users can:

• Discover and compare liquidity pools: View and filter liquidity pools across different DEXs based on key performance indicators like fees, rewards, or liquidity depth.
• Add or remove liquidity seamlessly: Users can directly interact with liquidity pools on different DEXs from one interface, simplifying the liquidity provision process.
• Track and manage positions: Our tool will allow users to track their LP positions real-time across multiple dexs.

Engagement & Target Users

Our project will engage a broad spectrum of users within the Cardano ecosystem, including:

• Retail DeFi users who want to optimize their liquidity provision strategies without needing to navigate multiple platforms.
• Liquidity providers seeking to maximize their earnings across multiple DEXs by reallocating funds based on real-time data.
• Newcomers to DeFi who are looking for a simple, intuitive way to explore and engage with liquidity pools.

Proving Our Impact

We will demonstrate our impact through several key performance indicators (KPIs), including:

• Increased liquidity provision: By simplifying the process, we expect more users to participate in liquidity pools across multiple DEXs, contributing to overall liquidity growth within the Cardano ecosystem.
• User engagement metrics: Tracking metrics such as user sign-ups, liquidity added, and funds actively managed via our platform.
• User feedback and satisfaction: We will regularly collect user feedback to ensure that our platform is meeting the needs of both new and experienced liquidity providers.

Our solution stands out due to its focus on user empowerment and decentralization. Unlike centralized liquidity management platforms, we will not custody user funds. Instead, users retain full control of their assets through direct interactions with DEX smart contracts.

This solution is particularly important for Cardano as it aligns with the network’s core values of decentralization, user empowerment, and ecosystem growth. By increasing the ease and efficiency with which users provide liquidity, we contribute to the overall health of Cardano’s DeFi ecosystem, ensuring it remains competitive, liquid, and accessible.

Who Will Benefit

• Retail users and liquidity providers will benefit by having a streamlined experience for managing their DeFi investments, enabling them to maximize their returns without friction.
• DEXs on Cardano will benefit from increased liquidity, driving more volume, reducing slippage for traders, and enhancing the overall competitiveness of the ecosystem.
• Cardano itself will benefit from a more engaged and liquid DeFi community, helping to cement its place as a top blockchain for decentralized financial activity.

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

Value to the Cardano Community

Our Liquidity Pool Aggregator will provide substantial value to the Cardano ecosystem by improving liquidity provision, enhancing user engagement, and contributing to the overall growth of Cardano's decentralized finance (DeFi) infrastructure.

Specifically, the project will:

1. Increase Liquidity: By making it easier for users to discover, track, and manage liquidity across various decentralized exchanges (DEXs), we expect a significant increase in liquidity being provided on Cardano-based DEXs. Increased liquidity will lead to lower slippage and better price stability for traders, boosting the overall efficiency and attractiveness of the ecosystem.
2. Lower Barriers to Entry: For many users, the complexity of managing liquidity positions across multiple platforms acts as a deterrent. Our solution simplifies this process, making it more accessible for both new and experienced users to participate in liquidity provision. This increased participation will contribute to the democratization of DeFi within the Cardano community, attracting more users and capital into the ecosystem.
3. Strengthen Cardano’s DeFi Ecosystem: A healthy DeFi ecosystem relies on well-distributed and efficiently managed liquidity. By aggregating liquidity pools across different DEXs, our project will facilitate a more balanced and efficient flow of capital across the Cardano network. This, in turn, enhances the competitiveness of Cardano in the broader DeFi space.
4. Drive Decentralization: Our platform adheres to the ethos of decentralization by ensuring that users maintain full control over their funds while interacting with smart contracts. This not only builds trust but also aligns with Cardano’s vision of creating a decentralized financial system.

[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?

The team have all been in the Cardano community for a number of years now and have recently built a DEX aggregator which has been fully built without raising any funds. A lot of the skills and knowledge we picked up from building the aggregator and custom chain indexer mean we have the technical ability to build this infrastructure. We already track all liquidity pools so we can use all of that data and from building the aggregator we have alot of experience of building transactions to interact with the various dex smart contracts

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

Milestone outputs

• Create a detailed specification document using our existing custom chain indexer as the foundation.

Acceptance criteria

• Completed spec document outlining how the platform will track and manage liquidity

Evidence of milestone completion

• Submission of the specification document 

Milestone outputs

• Build out UI for displaying liquidity pools and relevant details listed in initial spec doc
• Build a system for tracking positions directly linked to users’ wallets

Acceptance criteria

• UI displaying liquidity positions is complete and showing up to date info

Evidence of milestone completion

• Video recording or demonstration showing users adding liquidity and tracking their positions in real-time.

Milestone outputs

• Build a method for submitting liquidity provision transactions to the dexs to add or remove liquidity

Acceptance criteria

• In the dev environment we can successfully add liquidity to selected pools and track users liquidity positions across multiple DEXs from one interface

Evidence of milestone completion

• Video recording or demonstration showing users adding liquidity and tracking their positions in real-time.

Milestone outputs

• Build front end UI for adding or removing liquidity

Acceptance criteria

• In the dev environment we can successfully add liquidity to selected pools through the UI.

Evidence of milestone completion

• Video recording or demonstration showing users adding liquidity and tracking their positions in real-time.

Milestone outputs

• Conduct beta testing with selected users to identify any issues and improve the platform.
• Finalize platform and launch for public use

Acceptance criteria

• Platform is live for public access after resolving issues identified during beta testing

Evidence of milestone completion

• Final report and closing video

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

The main team for this project consists of:

Paddy – Principal Engineer

With over 15 years of experience in engineering and architecture, Paddy is the lead engineer for this project. He has been a Cardano Stake Pool Operator (SPO) since 2021 and has contributed to several notable Cardano projects, including PoolPeek and ADA Markets. Paddy will oversee the technical development, focusing on the platform’s architecture and integration with Cardano DEXs. Twitter

Paul – Cardano Educator & SPO

Paul has been an SPO since 2021 and runs a popular YouTube channel focused on educating the community about Cardano and its projects. He is part of the ADA Markets DEX Aggregator team focusing on front end dev and will also lead community engagement, user onboarding, and outreach ensuring the platform meets the needs of the wider Cardano ecosystem. - Twitter

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

Milestone Breakdown

• Milestone 1 – 20,000 ADA
•  Milestone 2 - 30,000 ADA
• Milestone 3 - 20,000 ADA
• Milestone 4 - 20,000 ADA
• Final Milestone - 10,000 ADA

Overall Cost Breakdown

• Infrastructure: 10,000 ADA
• Server costs, hosting, and cloud infrastructure for off-chain services.

• Backend and Frontend Development: 50,000 ADA
• Development for the platform's core features, including indexer updates, liquidity submission, and tracking functionality.

• User Interface & Experience Design: 15,000 ADA
• Designing and building a user-friendly interface for providing and managing liquidity.

• Testing and Optimization: 15,000 ADA
• Comprehensive testing, bug fixes, and performance optimizations during the beta phase.

• Project Management & Reporting: 5,000 ADA
• Managing the project, milestones, and regular updates to the community.

• Contingency: 5,000 ADA
• For any unforeseen expenses or ADA price fluctuations.

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

The cost of our Liquidity Pool Aggregator project has been carefully calculated to deliver maximum value for the Cardano ecosystem. Our budget primarily focuses on core development, UI/UX design, and infrastructure to ensure a seamless, decentralized platform for liquidity management. The costs have been benchmarked against industry-standard rates for blockchain development and UI design, ensuring that they are aligned with average wages for skilled professionals in these fields.

This investment will significantly enhance user participation and liquidity across multiple Cardano DEXs. By simplifying the liquidity provision process, we expect to increase both liquidity and user engagement, which will drive sustained economic value beyond the project’s initial cost. Additionally, the open-source nature of the platform allows for future scalability, enabling the community to build on the foundation we've created. The long-term benefits in liquidity growth and DeFi competitiveness justify the investment, delivering considerable returns for both users and the Cardano network.