Social Equb Staking: Empowering Decentralized Equb Network

[GENERAL] Name and surname of main applicant

Ammanuel Mekonnen

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

Individual

[GENERAL] Requested funds in ada

120000

[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)

We propose a decentralized equb using staking to enhance returns. Participants pool funds, earn yield via DeFi staking, and receive payouts in an automated, trustless environment powered by Cardano.

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

No

[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

[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

All smart contracts, staking protocols, and core functionalities will be open-sourced under the MIT License. This ensures transparency and allows external developers to audit and contribute.

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

Our proposed solution brings the traditional equb model onchain through a decentralized platform built on Cardano, integrated with Telegram. Participants will use their Telegram usernames and crypto wallets to join equb groups, contribute funds, and receive payouts automatically via smart contracts.

Collected fees will be invested in DeFi protocols to generate yield, adding value to participants beyond the traditional lump-sum payout. The system will provide full transparency and security, with smart contracts automating the contribution and payout process, ensuring no delays or mismanagement.

Key Features:

1. Onchain Transparency: Blockchain-powered smart contracts to automate fund management and payouts.
2. Yield Generation: Fees from the platform will be invested in DeFi protocols for interest earnings, providing participants with additional benefits.
3. Social Trust via Telegram: Participants use Telegram for group formation and interaction, allowing for trust-building among known members.
4. Decentralized Governance: The equb groups can vote on contribution amounts, payout schedules, and platform improvements.

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

The decentralized equb will showcase Cardano’s potential to revolutionize community-based financial models. It brings transparency, efficiency, and yield generation to traditional savings groups. The project will:

• Drive Adoption: Attract users to Cardano by introducing a familiar savings model with modern, decentralized benefits.
• Generate Yield: Increase ADA utility by investing fees into DeFi, creating additional returns for users.
• Engage the Community: Use Telegram’s wide reach to attract participants and expand the Cardano ecosystem.

We will measure impact via:

1. Number of Users: Track how many participants join equb groups.
2. Funds Rotated: Total ADA moved through equb groups.
3. Yield Generated: Interest earned from DeFi activities.

[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 consists of highly experienced professionals with expertise in full-stack development, and we are expanding our capacity to handle blockchain-specific tasks:

Team Expertise:

• Two Full-Stack Web2 Developers: Our developers are skilled in building user-friendly applications and will handle the front-end and back-end integration of the platform. They will focus on developing the user interface, Telegram bot integration, and the platform’s core infrastructure.
• Hiring a Smart Contract Developer: To manage the blockchain-specific aspects of the project, we will hire a dedicated smart contract developer with expertise in Cardano. This developer will be responsible for writing, deploying, and auditing the smart contracts that manage equb contributions, staking, and payouts.

By combining our team's Web2 development strengths with blockchain expertise through the addition of a smart contract specialist, we can ensure the project is delivered with high levels of trust and accountability. We will validate the feasibility through rigorous testing on Cardano’s testnet, ensuring that the smart contracts function as intended before mainnet deployment.

Additionally, we are committed to transparency, making the smart contract code open-source and allowing for community review and audits.

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

Research and Planning (Weeks 1-4):

Output: Conduct research, finalize architecture, and plan smart contract logic for staking and equb payouts.

Acceptance Criteria: A detailed technical blueprint of the smart contract and staking mechanism is created.

Completion Evidence: Documentation of the system architecture, including the staking strategy and equb rotation logic.

Smart Contract Development(Weeks 5-8):

Output: Develop and test smart contracts for equb contributions, staking, and payouts.

Acceptance Criteria: Smart contract deployed on Cardano’s testnet and passes internal audits.

Completion Evidence: Testnet transactions demonstrating functionality (equb formation, contributions, staking, and payouts).

Telegram Bot Integration(Weeks 9-16):

Output: Build the Telegram bot interface for user interaction, including wallet integration for contributions and payout management.

Implement DeFi staking strategies to invest collected fees and generate yield for equb participants.

Acceptance Criteria: Telegram bot successfully integrates with user wallets for submitting funds and receiving payouts.

Successful allocation of fees into vetted DeFi protocols, with yield generation tracked.

Completion Evidence: Demo of Telegram bot functionality on the testnet, showcasing wallet integration and user contributions.

Transaction records showing fees invested and yields generated from DeFi staking.

User Testing and Mainnet Launch (Weeks 17-20):

Output: Launch the MVP on Cardano mainnet and initiate user testing with a small group of participants (up to 100 users).

Acceptance Criteria: At least 100 participants successfully join an equb group and complete a cycle on the mainnet.

Completion Evidence: Mainnet transaction records and participant feedback showing successful equb operations and payouts.

Full-Scale Deployment and Optimization (Weeks 21-24):

Output: Expand the platform to support multiple equb groups, optimize staking yields, and improve user experience based on feedback.

Acceptance Criteria: Five fully operational equb groups on the mainnet, running automated payouts and staking.

Completion Evidence: Reports on sustained activity, yield generation, and ongoing user participation, supported by mainnet data.

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

1.Ammanuel Mekonnen , UI/UX Designer and project lead

LinkedIn : https://www.linkedin.com/in/amajo04/

Website : Aman.ethiospark.com

Email : Ehailebalmore@gmail.com

2.Joel Mekonnen , Senior Fullstack developer

LinkedIn : https://www.linkedin.com/in/joel-mekonnen356778/

GitHub : https://github.com/JoelMekonnen

Email : joelmek@gmail.com  

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

Milestone 1: Research and UI/UX Design (15,000 ADA)

Duration: 6 Weeks

Outputs: Research documentation, wireframes, and finalized UI/UX design.

• UI/UX Designer (40 ADA/hour)
• 40 hours/week for 6 weeks
• Total: 40 ADA/hour * 40 hours/week * 6 weeks = 9,600 ADA
• Research & Documentation
• Team time spent on research (data collection, competitor analysis, design specifications)
• Total: 2,000 ADA
• Miscellaneous costs (Design tools, software licenses)
• Tools like Figma, Adobe Suite, etc.
• Total: 1,500 ADA
• Project Management (PM fees, meetings, admin costs)
• Total: 1,900 ADA

Total Milestone 1 Cost: 15,000 ADA

Milestone 2: App Development (45,000 ADA)

Duration: 12 Weeks

Outputs: Fully functional Minimum Viable Product (MVP) with key features implemented.

• Frontend Developer (40 ADA/hour)
• 40 hours/week for 12 weeks
• Total: 40 ADA/hour * 40 hours/week * 12 weeks = 19,200 ADA
• Backend Developer (40 ADA/hour)
• 40 hours/week for 12 weeks
• Total: 40 ADA/hour * 40 hours/week * 12 weeks = 19,200 ADA
• Full Stack Senior Engineer (50 ADA/hour)
• 40 hours/week for 12 weeks
• Total: 50 ADA/hour * 40 hours/week * 12 weeks = 24,000 ADA
• Cloud Infrastructure (Hosting, Servers, Cloud storage)
• For hosting the app during development and production stages
• Total: 2,500 ADA

Total Milestone 2 Cost: 45,000 ADA

Milestone 3: Testing & Quality Assurance (QA) (25,000 ADA)

Duration: 4 Weeks

Outputs: Completion of unit tests, user acceptance testing (UAT), and beta testing.

• QA Specialist (40 ADA/hour)
• 40 hours/week for 4 weeks
• Total: 40 ADA/hour * 40 hours/week * 4 weeks = 6,400 ADA
• Beta Testing Campaign (Incentives for testers, bug bounties, feedback analysis)
• Total: 5,000 ADA
• Security Audits (External auditors for smart contracts, user data protection)
• Total: 8,000 ADA
• User Acceptance Testing (UAT)
• Collaboration with the local community, outreach for UAT
• Total: 4,000 ADA
• Miscellaneous costs (Testing tools, debugging tools)
• Total: 1,600 ADA

Total Milestone 3 Cost: 25,000 ADA

Milestone 4: Marketing and Launch (35,000 ADA)

Duration: 6 Weeks

Outputs: Full marketing campaign for user acquisition, platform launch, influencer outreach, and documentation.

• Marketing Budget (Local and International)
• Paid Ads (Google Ads, Facebook Ads, etc.)
• 10,000 ADA
• Influencer Marketing Campaign
• Collaborate with local and international influencers to promote the app
• 6,000 ADA
• Social Media Promotions (Instagram, TikTok, Telegram, Twitter)
• Community-building efforts, organic posts, sponsored content
• 5,000 ADA
• Referral Campaign and Learn-and-Earn Program
• Referral program for users to onboard new users (e.g., incentives like free tokens or points)
• 5,000 ADA
• Launch Event (Webinars, AMA, local event)
• Hosting virtual and physical events
• 2,500 ADA
• Content Creation (Videos, Graphics, Animations)
• Hiring professionals to create promotional material
• 4,000 ADA
• Miscellaneous marketing costs (PR, copywriting, design tools, etc.)
• 2,500 ADA

Total Milestone 4 Cost: 35,000 ADA

Milestone 5: Post-Launch Monitoring and Support (10,000 ADA)

Duration: 4 Weeks

Outputs: App support, issue fixing, and final reporting.

• Post-launch Developer Support (40 ADA/hour for 2 developers)
• 40 hours/week for 2 developers for 4 weeks
• Total: 40 ADA/hour * 2 developers * 40 hours/week * 4 weeks = 12,800 ADA
• Monitoring tools and server upkeep
• Maintenance of infrastructure after the launch
• 2,000 ADA
• Documentation and user manuals
• 1,200 ADA
• Final Reporting and Close-out (report writing, insights)
• 1,000 ADA

Total Milestone 5 Cost: 10,000 ADA

Grand Total for the Project: 120,000 ADA

• Milestone 1 (Research and UI/UX Design): 15,000 ADA
• Milestone 2 (App Development): 45,000 ADA
• Milestone 3 (Testing & Quality Assurance): 25,000 ADA
• Milestone 4 (Marketing and Launch): 35,000 ADA
• Milestone 5 (Post-Launch Monitoring and Support): 10,000 ADA

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

This project offers strong value for the Cardano ecosystem by expanding staking opportunities and driving adoption. With low overhead costs and a scalable framework, the platform provides a new entry point for users into DeFi, ensuring consistent growth in ADA usage. The yield-generating mechanism also presents a sustainable approach to capital growth, maximizing the utility of every ADA contributed. Our transparent, community-focused solution aligns with Cardano’s vision of financial inclusion, making it a strategic investment for the network’s future.