Cardano Swap Bot: A Discord bot enabling over 200M users to trade ADA and tokens

[GENERAL] Name and surname of main applicant

Simon (QCPOL Stake Pool)

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

Entity (Incorporated)

[GENERAL] Requested funds in ada

200000

[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 will develop a simple & fast Discord bot leveraging ADA Markets API to allow users to submit swap transactions within seconds.

[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.”

ADA Markets API: https://github.com/ADA-Markets/API

[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

It will not be open source to protect the users ensuring it's not copied into a malicious bot.

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

A fully functional Discord bot will be written and allowing users to submit swap transactions leveraging ADA Markets API.

The workflow is going to be:

1. The user will need to create a trade wallet with the bot using the /trade_wallet command. The bot will generate a new wallet linked to the user. The user will receive the address AND seed phrase.
2. The user will deposit ADA and/or tokens into the created wallet
3. The user will submit a swap transaction using the /swap command
4. A confirmation will appear to the user showing the approximate ADA or tokens received for the swap with fees + deposits. From there, there's 3 option:
5. The user accepts: the swap TX is signed & submitted
6. The user declines: the swap TX is discarded
7. After 30 seconds, the estimate is cancelled and the user needs to reexecute the /swap command

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

It eases the trading experience on Cardano by allowing > 200M users to trade ADA and tokens directly from Discord, whether they're at home, at work, on vacations, on the road, etc.

Measuring of the impact can be done by counting the amount of users of the bot and the amount of swaps submitted.

For now, these measurements will be tweeted by the QCPOLstakepool Twitter (https://x.com/QCPOLstakepool), but a separate account could be created in the future.

[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?

We have a lot of experience with Discord bots and Cardano. We developed the Cardano Tip Bot over 2 years ago: https://github.com/QCPOLstakepool/cardano-tip-bot for Twitter, Discord and Telegram. It is still currently used by over 10 000 users. The funds are safe and nothing was ever lost.

The feasibility is already confirmed as we have a prototype using DexHunter. It will be hardened and converted to ADA Markets.

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

A: Milestone outputs

• Working prototype with a fixed set of tokens (2)

B: Acceptance criteria

• Create a trade wallet
• Create a swap: ADA -> HOSKY or USDM
• Create a swap: HOSKY or USDM -> ADA

C: Evidence of milestone completion

• The TX is submitted on-chain

A: Milestone outputs

• User guide with images

B: Acceptance criteria

• User guide on how to create a trade wallet (with images)
• User guide on how to execute a swap (with images)

C: Evidence of milestone completion

• Guide will be hosted on a new repository on Github (URL to be defined)

A: Milestone outputs

• Generate a new trade wallet (in case it gets compromised by the user)

B: Acceptance criteria

• Generate a new trade wallet
• Safeguard: a new wallet can't be generated if it contains ADA. User must empty wallet before being able to regenerate it

C: Evidence of milestone completion

• The old wallet is forgotten by the bot
• The new wallet is used to make swaps

A: Milestone outputs

• Enable swap of a pre-defined set of tokens maintained by QCPOL
• Enable swap using a policy + name

B: Acceptance criteria

• Create a swap from/to any pre-defined tokens
• Create a swap from/to a policy + name (using "." format)

C: Evidence of milestone completion

• The TX is submitted on-chain

A: Milestone outputs

• Project completion

B: Acceptance criteria

• Users can create their trade wallet
• They can extract their address
• They can extract their seed phrase
• Users can submit swaps
• To/from tokens from a pre-defined list maintained by QCPOL
• To/from tokens using "." format
• Documentation is available on website (URL TBD)
• To create trade wallets
• To submit swaps
• Users can regenerate their trade wallet
• Only empty wallets can be regenerated

C: Evidence of milestone completion

• The Discord bot is up and running (ID TBD)
• The website (URL TBD) contains the documentation

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

QCPOL Stake Pool

https://qcpol.stakepool.quebec

Members

• Simon: Developer
• Jerome: Quality Assurance

ADA Markets

https://ada.markets/

They already have a working API, so we should not need them much. Maybe only for some troubleshooting.

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

• Development: 75 000 ADA
• Legal advisors: 30 000 ADA
• Cloud hosting (1 year): 5 000 ADA
• Documentation: 15 000 ADA
• Marketing, promotion & community engagement: 25 000 ADA
• Consultants: 50 000 ADA

Total: 200 000 ADA

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

It adds an easy way for users to use Cardano. By abstracting the wallet, users will be able to buy ADA and tokens directly on CEX, withdraw on their Discord wallet and trade immediately without having to setup Eternl, Vespr, Yoroi or any other Cardano wallets. The whole process can be done in less than 5 minutes.

Discord has over 200M monthly active users, so this proposal has the ability to bring a lot of new users to Cardano.