CSWAP: Real World Asset Expansion - Real Value for Cardano

[GENERAL] Name and surname of main applicant

Jon Kravetz

[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)

8

[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)

Tokenizing RWAs on the blockchain makes trading more efficient, less costly, and more accessible. CSWAP’s AMM-powered marketplace enables liquidity pools for RWAs.

[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 dependencies.

[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

Aside from the proprietary front-end code, everything will be open source (Apache License 2.0).

[METADATA] Horizons

RWA

[SOLUTION] Please describe your proposed solution

Our proposal focuses on advancing the R&D necessary to enable the tokenization of novel digital asset classes on Cardano, such as real estate, precious metals, digital collectibles, and event tickets. The goal is to create a comprehensive framework that allows for the seamless integration of several types of real world assets onto the blockchain while maintaining our high standards of transparency, security, and self custody.

A key aspect of our solution is the development of mechanisms for fractionalization and reverse-fractionalization. This includes enabling users to divide an asset into smaller fractions (fungible tokens or NFTs). These fractionalized RWA tokens will be tradable on our DEX/marketplace. When a user holds all fractionalized tokens, they will have the ability to recombine them into the original whole asset.

Our approach prioritizes creating reusable templates and modular standards. Other projects within the Cardano ecosystem can leverage these templates and standards so that DEX/marketplaces such as cswap.market can support them out of the box. This empowers developers and businesses to bring their unique assets on-chain with minimal friction, driving innovation within Cardano.

The Cardano ecosystem will benefit from our project by gaining access to new categories of digital assets, further enhancing its appeal to users and investors. By creating functionality for dynamic tokenization and fractionalization, we are facilitating the onboarding of third-party RWAs into the Cardano ecosystem. 

With this proposal, CSWAP is helping to position Cardano as a leader in the real world asset space.

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

Third parties will be able to use CSWAP to tokenize real world assets, fractionalize them into tokens or NFTs, and create liquidity pools for them on our platform.

Success will be measured by feedback from third parties who aim to distribute RWAs on our platform and users who trade them.

We will share 1 or more case studies, surveys, and usage data, including number of assets, asset types, and transaction volume during initial rollout.

[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?

CSWAP Systems has delivered innovative solutions on the Cardano blockchain, including the NFT/RWA DEX, cswap.market, which has surpassed 3M ADA in volume with thousands of transactions. We are among the first to bring real-world assets to Cardano, and the only team offering DEX functionality for RWAs.

Jon Kravetz is a SME on RWAs. He recently led the RWA round table discussion hosted by Cardano Paul. Link: https://x.com/Cardano/status/1836457675803992389

CSWAP Systems brings senior-level experience from companies like Nike, Best Buy, and Airbus. Jon Kravetz has led development teams, resulting in seven-figure solutions for enterprises such as AstraZeneca and Rexel.

CSWAP Systems uses agile methodologies in its development process, with a boutique consulting angle. This allows our team to remain lean and deliver high quality solutions. Here are some processes we incorporate into our planning, design, and development phases.

1) Business requirements gathering.

2) Gap analysis.

3) Functionality matrix/scorecard including ease of implementation, user value, and product value.

4) Comprehensive Screen Design Documentation including wireframes and functional requirements.

5) Transparent and community development process.

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

Business Requirements Gathering

A) Milestone Outputs: CSWAP Systems will provide a detailed business requirements document. This document will outline exactly what is needed from a business perspective to deliver a complete solution for our RWA expansion. The business requirements document will include any legal/license considerations, and also storage plans.

B) Acceptance Criteria: The business requirements document must describe the requirements in a way so that the team can begin the solution design process.

C) Evidence of Milestone Completion: Business and Technical leadership will sign off on the business requirements document and share with Catalyst team as requested.

Screen Design Documentation

A) Milestone Outputs: CSWAP Systems will provide a working screen design document with wireframes and functional description for each screen/module. (version 1)

B) Acceptance Criteria: The screen design document, which is a living agile document, must account for all new screens and modules and fulfill the business requirements.

C) Evidence of Milestone Completion: Business and Technical leadership will sign off on the screen design document. A link to the agile SDD will be provided to Catalyst team for ongoing review.

RWA Minting Functionality

A) Milestone Outputs: CSWAP Systems will provide a video demonstrating how RWA representative NFTs are minted using our what is now public-facing minting tool. CSWAP will also provide the asset names for on-chain verification of at least two different RWA categories (pre-prod).

B) Acceptance Criteria: CSWAP Systems has successfully used minting functionality to mint RWA NFTs that represent ownership of real world assets.

C) Evidence of Milestone Completion: Catalyst team can verify NFTs are being minted and that the assets exist on-chain (pre-prod). This information can be made public.

RWA Fractionalization and De-fractionalization

A) Milestone Outputs: CSWAP Systems will provide a video demonstrating how RWA representative NFTs are fractionalized into tokens or NFTs. CSWAP will also provide the asset names for on-chain verification (pre-prod).

B) Acceptance Criteria: CSWAP Systems has successfully implemented functionality to fractionalize/de-fractionalize RWA NFTs.

C) Evidence of Milestone Completion: Catalyst team can verify NFTs are being fractionalized/de-fractionalized into/out of tokens and NFTs, and that the assets exist on-chain (pre-prod). This information can be made public.

Tradability of RWA fractionalized assets on CSWAP DEX/marketplace (app.cswap.fi)

A) Milestone Outputs: CSWAP will integrate RWA token / NFT trading into the CSWAP ecosystem (pre-prod).

B) Acceptance Criteria: CSWAP Systems has successfully integrated RWA / fractionalized trading and LP functionality into its ecosystem.

C) Evidence of Milestone Completion: CSWAP Systems will provide a link to our staging server so that milestone completion can be verified in a hands-on-manner.

Solution Delivery

A) Milestone Outputs: CSWAP will provide a video demonstrating our end to end solution working on mainnet. We will also provide a project closeout report.

B) Acceptance Criteria: The video and project closeout report is provided to either the catalyst team and/or public.

C) Evidence of Milestone Completion: The video, project closeout report, and live mainnet functionality allowing users to buy/sell/provide liquidity for RWA fractionalized tokens and NFTs via the CSWAP DEX/Marketplace.

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

Jon Kravetz (CEO) - Project Lead – Strategy & Tokenization Development

Role: Lead strategic direction and oversee the tokenization and fractionalization/de-fractionalization process, as well as researching and validation of RWAs. Manage the creation of custom RWA images and certificates to ensure accurate on-chain representation. Coordinate cross-functional efforts to deliver seamless integration of new asset classes.

LinkedIn

Co-Lead (COO) – Asset Research & Backend Integration

Role: Focus on identifying and evaluating new asset classes for tokenization. Develop metadata structures and integrate them with backend systems to support smooth on-chain deployment. Ensure robust database management and optimizes backend infrastructure to handle an expanding array of RWAs. Along with the Project Lead, coordinate with third parties to explore RWA tokenization. Oversee the team’s workflow to streamline the development process.

Lead Plutus/Aiken Architect (CTO) – Smart Contract Development

Role: Develop and implement smart contracts using Aiken, enabling secure fractionalization and de-fractionalization of digital assets. Focus on creating efficient contract logic to divide NFTs into fractions and reassemble them seamlessly. Ensure integration with backend systems, maintaining high standards of security and user experience.

Franklin Chua - Software Development Lead – Plutus Architect & Backend

Role: Design backend architecture necessary to support RWAs, co-develop smart contracts for fractionalization, and helps create metadata standards. Responsible for developing and extending the RWA minting infrastructure. Coordinate with the team to ensure a seamless framework for tokenizing new RWA asset classes on Cardano.

Frontend Developer – UI/UX Design & Platform Enhancement

Role: Enhance the user interface and experience on cswap.market, focusing on usability and design. Implement features to improve user interaction with tokenized and fractionalized assets, ensuring accessibility and clarity. Work with the team to deliver a cohesive and engaging front-end experience.

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

Budget & Costs:

Operational Costs: 100,000 ADA

• Supports infrastructure, software tools, and resources for ongoing research and development over 6 months, including hosting, data storage, and development environments for building templates and standards.

Development Costs: 250,000 ADA

• Smart contract development, backend and frontend development, and project management.

Legal & Compliance: 70,000 ADA

• Allocated for legal research and consultations to ensure that tokenization and fractionalization mechanisms comply with regulatory standards. Includes developing legal templates and documentation to support the broader Cardano community.

Marketing & Third Party Engagement: 30,000 ADA

• Funds educational initiatives and workshops to engage third parties, demonstrating the benefits and use cases of new RWA functionality. Supports content creation, outreach efforts, and gathering feedback.

Development of Primitive Open-Source Templates & Standards: 50,000 ADA

• Focused on creating reusable templates and standards for tokenizing diverse asset classes, enabling third parties to tokenize their assets.

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

Developing the the ability to fractionalize and de-fractionalize real world assets requires significant technical expertise. The labor required for this proposal is heavily discounted relative to industry norms. Any reputable vendor would charge at least 3 times more for the scope of this proposal.