Danogo Fixed Term Deposit

[GENERAL] Name and surname of main applicant

Nguyen Hai Chau

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

Individual

[GENERAL] Requested funds in ada

218000

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

10

[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 already have a functional deployed product on mainnet (https://danogo.io/) and this extension provides features for users to create fixed-term deposit to earn higher yield.

[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

We will open-source our smart contracts.

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

Approach:

• Building features as a part of the Danogo Bond platform (https://danogo.io/) for users to create deposit pools with a significant amount of tokens by a fixed maturity date, which can be used for providing fixed-rate lending proposals.
• The pool will be tokenized and minted into principal and yield tokens (pT & yT). Suppliers can redeem them at maturity if they hold these pT and yT tokens.
• Almost always ensure that the yield for suppliers equals or exceeds the interest rate of non-maturity deposits on Liqwid (https://liqwid.finance/).
• pT & yT can be traded to increase liquidity.

Major Features:

In this proposal, we will focus on developing fixed-term deposit features. In the broader picture, we will build additional modules to support this module, enabling suppliers, borrowers, and other users to easily participate in this ecosystem.

The main feature of this proposal: users can create pools with fixed maturity dates and use these pools to provide fixed-rate lending proposals.

Audience:

This project will attract a wide range of participants within the Cardano ecosystem, including those seeking financial solutions. By providing them with a platform that prioritizes safety and offers opportunities based on predictability, we will attract those who are currently underserved by existing options.

------(日本語翻訳)------

アプローチ:

• ユーザーが固定満期日までに大量のトークンを集めた預金プールを作成できるプラットフォームを構築し、これを固定金利の貸付提案に使用できるようにします。
• プールはトークン化され、元本トークン（pT）および利回りトークン（yT）として発行されます。供給者は、これらのpTおよびyTトークンを保有している場合、満期時に償還することができます。
• 供給者の利回りがほぼ常にLiqwid（https://liqwid.finance/）の無満期預金の金利と同等以上であることを保証します。
• pTおよびyTは取引が可能で、流動性を高めることができます。

主な機能:

本提案では、固定期間の預金商品を開発することに重点を置きます。より広範な視点では、このモジュールをサポートするために追加のモジュールを構築し、供給者、借り手、その他のユーザーがこのエコシステムに簡単に参加できるようにします。

この提案の主な特徴は、ユーザーが固定満期日を持つプールを作成し、これらのプールを使用して固定金利の貸付提案を行えるようにすることです。

対象:

このプロジェクトは、Cardanoエコシステム内で金融ソリューションを求める幅広い参加者を引きつけます。安全性を重視し、予測可能性に基づいた機会を提供するプラットフォームを提供することで、既存の選択肢では十分にサービスが行き届いていない人々を惹きつけます。

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

• Offering a more competitive interest-earning solution compared to traditional staking pools.
• Our project boosts capital efficiency by introducing a secondary market through the tokenization of yield-bearing assets, splitting them into principal and yield tokens. This model, similar to Pendle (https://www.pendle.finance/), allows independent trading of these tokens, adding a new liquidity layer to Cardano’s DeFi ecosystem.
• Our project also promotes composability and interoperability among Cardano dApps, enhancing the ecosystem’s versatility and integration potential.

------(日本語翻訳)------

• 従来のステーキングプールと比較して、より競争力のある利息獲得ソリューションを提供します。
• 私たちのプロジェクトは、利回りを生む資産をトークン化し、それを元本トークンと利回りトークンに分割することで、二次市場を導入して資本効率を高めます。このモデルは、Pendle（https://www.pendle.finance/）に似ており、これらのトークンを独立して取引できるようにし、CardanoのDeFiエコシステムに新たな流動性層を追加します。
• また、CardanoのdApp間の相互運用性と統合の可能性を高め、エコシステムの多様性と柔軟性を促進します。

[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 already have a functional deployed product on the Cardano mainnet (https://danogo.io/) and "Danogo fixed-terrm deposit" is a feature extension.

Some of the development team’s experiences that were relevant to this project:

• developing smart contract on Cardano, working with some audit partners;
• deep investigation in Liqwid (https://liqwid.finance/) systems, and also the Pendle project (https://www.pendle.finance/);
• project management with Agile - Scrum method;
• strong QC team with experience in working with audit partners;
• the infrastructure is managed by a strong and dedicated for Cardano projects Site Reliability Engineer team.

Pendle's model (https://www.pendle.finance/) has been proven in the Ethereum market by ranking in the top 10 in TVL.

Moreover, the product is being developed on top of Liqwid.

Therefore, we are confident in the feasibility of this project.

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

(1 months)

Project Planning and Design.

Outputs:

Function report file:

• a UI Design in Figma;
• a product document with a clear description of all features;
• technical documents with high-level design.

(2 months)

Allow deposit to mint into principal and yield tokens (pT & yT).

Outputs:

A webapp prototype should demonstrate:

• the flow when the user deposits an amount of token and receives the pT & yT;
• the deposit pool from the beginning day until maturity day.

(2 months)

Redeem feature

Outputs:

A prototype should demonstrate:

• the pool at the maturity day and after redeemed step;
• the flow when the user redeems the principle & yield tokens, and receives the original tokens.

(2 months)

To integrate with Liqwid to supply and withdraw, corresponding to depositing and redeeming features.

Outputs:

Report file including all related transactions, which are integrated with Liqwid (https://liqwid.finance/) platform:

• depositing, minting transactions;
• and redeeming transactions.

(2 months)

To release the fixed-term deposit feature as a part of the Danogo Bond platform on Mainnet and run a marketing campaign.

Outputs:

• The link of the “Fixed-term deposit” feature on mainnet, which is a part of the current Danogo platform (https://danogo.io/);
• Demo video of the full Danogo product.
• The video presents the user experience with all functions related to the fixed-term deposit module;
• The video presentation must be professional, clear and effectively communicate the product’s purpose and impact.

(1 month)

Final project completion report.

Outputs:

• Report of traffic to https://danogo.io/ including visits to fixed-term deposit functions;
• Dashboard of transactions, TVL of fixed-term deposit feature on Danogo Bond product.

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

Technical Lead: Truong Quang Hung

Project Manager: Phan Phung Hai

QC Lead: Le Thi Thanh Ngan

&

Development team

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

Estimated Project Duration: 10 Months

1. Product Research (₳15,000):
2. Liqwid (https://liqwid.finance/),
3. Pendle (https://pendle.finance/).
4. Project Management (₳24,000)
5. Project Development (₳135,000)
6. Project Testing (₳28,000)
7. Project Marketing (₳16,000)

Total: ₳218,000

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

The cost of project would be small since our proposal is built on top of Liqwid (https://liqwid.finance/).

It uniquely showcases and promotes composability and interoperability between Cardano's dApps.

Compared to the Optim project (Fund 11 - optim-account-unleashing-dapp-innovation, Find 11 - virtual-ledger-layer), the cost of building this product is small.