DanoCross-Pioneering cross-chain investment strategy.

[GENERAL] Name and surname of main applicant

Trieu Dinh Nguyen

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

Individual

[GENERAL] Co-proposers and additional applicants

Vu Tung Linh

Nguyen Duc Thuan

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

9

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

Yes

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Allows users holding assets on the Cosmos system to borrow and trade Bonds on Danogo without holding the original ADA

[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.”

Cardano IBC incubator (https://github.com/cardano-foundation/cardano-ibc-incubator): project to connect cardano with IBC ecosystem.

[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 of our smart contracts Will be open source under Apache 2.0 license

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

Danogo system provides several features:

• Allow users who have ADA can issue bonds along with an amount of their assets, which can be borrowed by other users can therefore they can earn asset based on the fee (which is normally higher than staking yield)
• Users who does not have enough amount of staking ADA can borrow some ADA for staking purpose only and pay a fee on it. By doing that, they will have more voting power for taking part in governance, or they can earn more airdrop from staking pools, and a bunch of other benefits ...

Currently, the fee can only be paid with ADA, which is inconvenient for users: when they (both issuers and borrowers) want to pay/receive fee with another assets, they have to swap their ADA into another assets (or vice versa). That mean they will lose a fee on a swap transaction. This is even worse when their expected asset is not in Cardano because they will (mostly) have to use a centralize exchange platform.

My proposal is first allow lenders to choose what they will receive as fee for his bond. At the end of an epoch, borrowers will need to prepare configured asset and pay fee for their borrowed bond. The exchange rate between ADA and that token will be calculated using a specified Oracle. Second, with the new Cardano-IBC technique, it is possible to transfer asset cross-chain. In particular, IBC assets such as ATOM, OSMO or even ETH can be transfered into Cardano with high security and trustablity. Therefore, the option list of fee assets can be widely expanded.

Danogoシステムは、いくつかの機能を提供しています。

• ADAを保有しているユーザーは、自身の資産とともに債券を発行でき、他のユーザーがそれを借りることで、貸し手は手数料に基づいた資産を得ることができます（通常、ステーキングの利回りよりも高い手数料が得られます）。
• ステーキング用のADAが十分にないユーザーは、ステーキング専用にADAを借りて手数料を支払うことができます。これにより、ガバナンスに参加するための投票権が増えたり、ステーキングプールからのエアドロップを多く受けたり、その他さまざまなメリットを享受できます。

現在、手数料はADAでしか支払えず、ユーザーにとって不便です。発行者も借り手も他の資産で手数料を支払いたい（または受け取りたい）場合、ADAを他の資産に交換する必要があります（またはその逆）。これは、スワップ取引に手数料がかかるため、損失が発生します。さらに、希望する資産がCardanoにない場合、主に中央集権型の取引所を利用しなければならないため、さらに不便です。

私の提案は、まず貸し手が自身の債券に対する手数料として何を受け取るかを選択できるようにすることです。エポックの終了時に、借り手は設定された資産を準備し、借りた債券に対する手数料を支払う必要があります。ADAとそのトークンの為替レートは、指定されたOracleを使用して計算されます。次に、新しいCardano-IBC技術により、クロスチェーンでの資産移転が可能になります。特に、IBC資産（ATOM、OSMO、またはETHなど）を高いセキュリティと信頼性でCardanoに移転することができます。これにより、手数料資産の選択肢が大幅に拡大します。

El sistema Danogo ofrece varias características:

• Los usuarios que tienen ADA pueden emitir bonos junto con una cantidad de sus activos, los cuales pueden ser tomados en préstamo por otros usuarios, permitiéndoles ganar activos en función de la tarifa (que normalmente es superior al rendimiento del staking).
• Los usuarios que no tienen suficiente ADA para staking pueden pedir prestado ADA solo para fines de staking y pagar una tarifa. Al hacerlo, tendrán más poder de voto para participar en la gobernanza, o pueden ganar más airdrops de los pools de staking, y otros beneficios adicionales.

Actualmente, la tarifa solo se puede pagar con ADA, lo cual es inconveniente para los usuarios. Cuando ellos (tanto emisores como prestatarios) desean pagar/recibir la tarifa con otros activos, tienen que intercambiar su ADA por otros activos (o viceversa). Esto significa que perderán una tarifa en la transacción de intercambio. Esto es aún peor cuando el activo que esperan no está en Cardano, porque en su mayoría tendrán que usar una plataforma de intercambio centralizada.

Mi propuesta es, en primer lugar, permitir que los prestamistas elijan qué recibirán como tarifa por su bono. Al final de una época, los prestatarios necesitarán preparar el activo configurado y pagar la tarifa por su bono tomado en préstamo. El tipo de cambio entre ADA y ese token se calculará utilizando un Oracle específico. En segundo lugar, con la nueva técnica Cardano-IBC, es posible transferir activos entre cadenas. En particular, los activos IBC como ATOM, OSMO o incluso ETH pueden transferirse a Cardano con alta seguridad y confiabilidad. Por lo tanto, la lista de opciones de activos de tarifa puede expandirse ampliamente.

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

• Our app will be the first one to integrate with IBC technique, so that improve possibility of cross-chain swap in Cardano
• Encourage IBC users to access and make transactions on Cardano
• With custom fee payment we reduce transaction fee for Danogo's trader, help them save and stay safe (since they don't need to use CEX)
• We will also publish guide on how to build IBC-Cardano bridge to help other Cardano developers to grow Cardano ecosystem together

• 私たちのアプリは、IBC技術と統合する最初のものとなり、これによりCardanoにおけるクロスチェーンスワップの可能性が向上します。
• IBCユーザーがCardanoにアクセスし、取引を行うことを奨励します。
• カスタム手数料の支払いにより、Danogoのトレーダーの取引手数料を削減し、彼らのコストを節約し、安全を確保します（CEXを利用する必要がなくなるため）。
• IBC-Cardanoブリッジの構築方法に関するガイドを公開し、他のCardano開発者がCardanoエコシステムを一緒に成長させる手助けをします。

• Nuestra aplicación será la primera en integrarse con la técnica IBC, mejorando así la posibilidad de realizar intercambios entre cadenas en Cardano.
• Alentamos a los usuarios de IBC a acceder y realizar transacciones en Cardano.
• Con el pago de tarifas personalizadas, reducimos las tarifas de transacción para los comerciantes de Danogo, ayudándolos a ahorrar y mantenerse seguros (ya que no necesitan usar CEX).
• También publicaremos una guía sobre cómo construir un puente IBC-Cardano para ayudar a otros desarrolladores de Cardano a hacer crecer el ecosistema de Cardano juntos.

[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?

With many years of experience developing products on the Cardano platform, including complex projects such as Danogo and Tempo, we have the capacity and expertise to successfully deploy this project. We also have performed researches and have deeply understand about Cardano, IBC, and actively update solution for Cardano - IBC. So we are quite confident to deliver our proposal in acceptable time.

This project is not only a proposal but also our signature product, so we will always strive to complete the product with a high level of reliability.

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

Build up team and technical design (1 months)

Output: Danogo's system design to adapt with flexible payment

Acceptance criteria:

- Application technical design must be provided

- Design flow for all involved transactions & smart contracts (including IBC transactions flow)

Evidence

• PDF document will be published

Allow Danogo bond fee payment with flexible token (4 months)

Output: Allow Danogo to configure babel fee on testnet

Acceptance criteria:

- Issuer can issue bonds on Cardano and select their own expected fee payment token on testnet. This phase it may not support all tokens but a few listed tokens

- Borrowers can pay fee for their borrowed bonds using token configured. The exchange rate will be uploaded using oracle. The total fee must be paid is exchange_rate * bond_fee_rate * bond_amount

- For customer convenience, we also apply babel fee for their transaction fee. So they don't need any ADA to borrow bonds on Cardano

Evidence of milestone completion:

• - We will publish an alpha version of Danogo new feature on testnet, which is expected to support mentioned features

Connect IBC tokens: cross-chain transfer & allow payment with IBC tokens (3 months)

Output: Allow Danogo to configure fee payment with IBC tokens

Acceptance criteria:

• Allow issuer/borrower to buy/sell bonds with IBC token on testnet. At least ATOM and OSMO will be supported

Evidence of milestone completion

• - Release new version of Danogo on testnet that support trading bonds with ATOM and OSMO

Release & Marketing (1 months)

Output: Danogo mainnet release

Acceptance criteria

• Allow Danogo's users to configure fee with both Cardano's tokens and IBC token (ATOM & OSMO first)
• Video introduction for Danogo V2

Evidence of milestone completion:

• Release Danogo app on mainnet that support flexible fee payment

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

1 Do Tran Linh, Engineering Manager

Leads performance optimization efforts to enhance project efficiency

Oversees software development processes and product delivery

Assists in project outreach and seamless integration of technology solutions

2 Trieu Dinh Nguyen , Solution Architect

Designs and executes solutions tailored to meet infrastructure and project requirements

Brings extensive experience as a Solutions Architect and software engineer to the team

Proficient in DevOps practices and skilled in Smart Contract development

3 Nguyen Duc Thuan, Blockchain Leade

Brings extensive experience Blockchain architect to the team

Experience skilled in Smart Contract development

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

• Development team: ~ ₳94.200 for 9 months
• Testing: ₳20.000
• Infrastructure: ₳20.000 for 1 year
• Report: ₳10.000

Total: ~₳142.000

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

Our product promises to expand and bring many values to the Cardano ecosystem:

• Attract users from chains in the cosmos ecosystem, contributing to increasing liquidity for defi products in general
• By flexibly automating exchange process, we help investors and yield farmers save costs and be safer in transactions
• By pioneering the construction of IBC-related applications on Cardano, we contribute to encouraging developers (from both Cardano and Cosmos) to participate in the ecosystem, which is the premise to open up more ideas about building applications on Cardano

In fact, we under estimated the cost since we will self-fund for this project as well.