Levvy Plutus V3 upgrades and Token Lending/Borrowing

[GENERAL] Name and surname of main applicant

Jonathan Middleton

[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)

5

[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 to develop a Plutus V3 smart contract powered addition to our platform that

allows the safe lending of tokens for ADA providing leveraging opportunities for users. 

[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.”

Anvil Dev Agency

Anvil is a well-known and very capable development team in the Cardano ecosystem. We’re

partnering with them to build out a new range of utility not currently available on Cardano.

Anvil will be handling the development of these new features. 

[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

Past development has been closed source. This build will be open source, and we will open

source our existing platform in 2025. 

[METADATA] Horizons

Lending

[SOLUTION] Please describe your proposed solution

Currently Levvy.fi sees around 6,000,000 ADA per month in volume between lenders and

borrowers. Our platform allows users to lend ADA and borrowers to secure loans using their

assets as collateral. We differ from other lending protocols by positioning ourselves as a

leveraging platform, rather than just a lending and borrowing protocol. Borrowers can use

less collateral than other lending platforms to secure loans and make shorter term

speculative moves in the market. In return for the lenders taking on more risk with these

lower collateral loans, they’re rewarded a higher premium in interest fees charged to the

borrower.

Cardano has seen it’s DeFi ecosystem grow dramatically over the last year, with dozens of

incredible new projects blossoming in the ecosystem. Many of these projects have their own

tokens that represent governance power and act as shares in their respective projects. We

can off er a unique approach in allowing users to harness their investments in these tokens to

unlock additional yield earning opportunities by providing a platform that allows them to

lend their tokens in return for interest yield.

Lending:

Users will be able off er their token assets on our platform to be borrowed from by users using

their ADA as collateral. This will open up a wide range of new utility and speculation for the

Cardano community. Providing this new utility is likely to increase activity in the Cardano

economy, stimulating more volume across projects and DEX’s. The result is token holders will

have the opportunity to earn even more yield on the tokens they already hold.

Borrowing:

Users will be able to borrow tokens using their ADA as collateral for the loan. This presents a

new opportunity for users to speculate on the future price of different tokens and leverage

their positions in new ways!

Features to Develop:

Develop a smart contract using Plutus V3 (2 Months/320 Hours)

- Implement the following features.

- Borrower Actions.

- Borrow tokens in exchange of ADA for a determined period. (14 or 28 days)

- Pay back loan + Interest, receive collateral back. - Pay back past due loan if not foreclosed by the lender.

- Lender Actions.

- Lender can specify LTV % to ADA collateral.

- Lender can edit or cancel existing token off er.

- Foreclose past due loans and claim collateral.

- Claim ADA from paid back loans

- Management.

- Levvy team sets interest rates based on token criteria.

- Document the smart contract.

- Test/Support implementation in existing infrastructure if required.

Goals for Fund 13

Token lending is the next logical progression in our product roadmap, as we intend to expand

Levvy to be capable of a multitude of functionalities. We aim to create a broader DeFi

ecosystem to facilitate lending, borrowing and leveraged positions for our users. Allowing a

much wider range of liquidity access and speculation, we believe this product will stimulate

volume in the ecosystem. We have already started to study the ecosystem and how this

could improve use cases for assets in the Cardano ecosystem as well as plan out the details

on how to proceed in building this new utility. 

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

Offering new avenues for the community to earn additional yield on their investments is

essential to increasing earning opportunities in the ecosystem. We believe our unique take on

token lending could see increased trading volume for token assets across the ecosystem. This

will provide additional stimulation to the general economy on Cardano by earning projects

more fees, seeing more volume on DEX’s and increasing the circulation of value in the

ecosystem.

75% of all fees generated by Levvy are paid out to the 750+ holders of Angel Finance who

bought Levvy as a community to save this widely used platform when TAS migrated to Base.

Each of the last few months has seen over 80,000 ADA each month distributed to our

holders. This has also contributed to the general economy on Cardano as those paid fees are

used by community members to re-invest in the ecosystem. Adding token lending to Levvy

will increase earned fees by the platform and give back even more to the community, which

will in turn be circulated back into the ecosystem. 

[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?

By working with Anvil, an esteemed development company in the space.

Anvil has a strong track record in managing complex, innovative projects with high levels of

trust and accountability, demonstrated by their successful deployment of several custom

projects over 3 years. They will follow their standard company practices and develop this

with the same intent that has driven their business to the level of success it currently has.

We have already worked with Anvil on the concept and planning of this new development

before submitting this proposal. They’ve expressed that they’re more than confident in their

ability to bring token lending to Levvy.

Thanks to the aforementioned work we have already done, we have confirmed that our

approach is highly feasible, and Anvil are the right team to bring it to success. 

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

Outputs:

Build out development timeline

Clearly outline all tasks and respective due date

Create a marketing plan

Acceptance Criteria:

Link to Google Document showcasing timeline to completion

Link to Google Document outlining marketing planning and goals 

Outputs:

Begin development of back-end infrastructure

Acceptance Criteria:

Provide a video example of the back end in function through the use of an endpoint 

Outputs:

Prepare platform for internal alpha testing and auditing

Document feedback for next revision

Acceptance Criteria:

Link to Alpha version of the platform

Link to Google Document containing relevant feedback 

Outputs:

Prepare platform for closed beta test

Target frequent users of the platform

Document user feedback for final release

Acceptance Criteria:

Link to Beta version of the platform

Should reflect all prior documented feedback corrected

Bug free

Link to Google Document containing additional feedback 

Outputs:

Finalize the project for public release

Produce comprehensive documentation of the work completed, including a video

demonstration.

Acceptance Criteria:

Compile a project close-out report outlining the development process, community

engagement outcomes, and a detailed review of all milestones achieved.

Produce a video that demonstrates the platform's capabilities, its impact on the Cardano

ecosystem, and real-world applications. 

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

Jonathan Middleton (Angel Finance) Co-founder, project management, partnerships and marketing

Barachiel (Angel Finance) Co-founder, project management, portfolio manager

Eric Polk (Angel Finance) Co-founder, community management, partnerships and marketing

Zachary Soesbee: CEO of Anvil. Responsible for managing timelines, milestone

submission, and general development team logistics.

David Desjardins: CTO of Anvil. Responsible for managing development work, implementation, and all other technical requirements.

Patrick Bernard: COO of Anvil. Responsible for video documentation, publication, and employee management.

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

Project management 20%

20% of the budget (52,500 ADA) will be allocated to project management of Plutus V3

upgrades and Token Lending/Borrowing platform. Team members will be dedicated to

management of catalyst funds, regular development meetings and updates and ensuring

milestones are met in a timely fashion. This scope is to include but is not limited to:

-Management of Development team

-Management of Marketing operations

-Managing our schedule to meet or exceed all catalyst deadlines

-Manage product testing and release

-Managing feedback process for platform

-Managing customer service through the final release

Development 65%

65% of the budget will be allocated to development (183,000 ADA) quoted at 320 hours of

work. The scope is to include but is not limited to:

-Development organization and planning

-Implementation of Plutus v3

-Implementation of Token Lending features

-Internal testing and bug hunting

-Beta testing with select users of the Levvy platform

Marketing 5%

5% of the budget (13,200 ADA) will be allocated to marketing. Build it and they will come

does not work. New platforms and features require proper marketing and outreach to

entice end users and ensure a successful launch. This will include but is not

limited to:

-Twitter Spaces

-Youtube Interviews

-Creation and Curation of marketing content including 1 professional video ad and brand

specific artwork.

Design 10%

10% of the budget (26,300 ADA) will go to the final wireframe, design, mood boards, and

branding of the Levvy Token Lending/Borrowing section. This will ensure that users have

access to a platform that is intuitive, easy to use and also pleasing to the eyes. 

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

Levvy already creates a lot of value in the Cardano ecosystem and plans to increase its value even more with this proposal. 

Levvy sees 6,000,000 ADA in volume across its platform every 30 days. This volume is the result of providing direct liquidity access for users in the Cardano ecosystem. 

Allowing users to borrow tokens, pay premiums, speculate on future market conditions and leverage their positions in a new way will increase our monthly volume. 75% of all fees generated by this new volume go back to the community and are then spent in the ecosystem again. This helps to keep value circulating in the economy.

This proposal will increase volume across Levvy, Dex's and facilitate a new kind of direct user to user loan. In turn, you'll see even more volume across many tokens on many of Cardano's platforms.