Open-Source Batchers for Orderbook DEXs

[Proposal setup] Proposal title

Please provide your proposal title

Open-Source Batchers for Orderbook DEXs

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

82100

[Proposal Summary] Time

Please specify how many months you expect your project to last

5

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

Developers lack open-source batcher implementations for orderbook DEXs/AMM DEXs, limiting their ability to interact with orders, tap into liquidity, and build on top of platforms like MuesliSwap.

[Proposal Summary] Project Dependencies

Does your project have any dependencies on other organizations, technical or otherwise?

No

Describe any dependencies or write 'No dependencies'

No dependencies

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

License and Additional Information

We intend to release all project outputs under the MIT License, making them fully open-source and available throughout the project's lifecycle. All code will be accessible in a public repository.

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal

DEX

[Campaign Category] Category Questions

Mention your open source license and describe your open source license rationale.

We intend to release all project outputs under the MIT License. This permissive license ensures all outputs are freely available, reusable, and extensible by the Cardano community and all interested developers. We chose MIT to maximize transparency and collaboration, enabling developers to adapt, improve, and integrate the code without restrictions while ensuring attribution. All code will be accessible in a public GitHub repository.

How do you make sure your source code is accessible to the public from project start, and people are informed?

We will host the code publicly on GitHub from the project start, so everyone who is interested will have the chance to look at the code.

Additionally we will update the public through various sources like our X page (38k follower), Telegram (3k members) and our Discord (nearly 6k members).

How will you provide high quality documentation?

We will provide high quality documentation in the form of a detailed README in our codebase. This README will describe the general setup of the codebase, the rational behind design decisions and provide usage instructions for other developers. Moreover, we are trying to develop a modular design of our codebase that enables adaptability and ease of reuse by others in the feature.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

We will develop and release open-source implementations of batchers that can be used for various orderbook DEXs. This will be examplified with the MuesliSwap orderbook contract.

This includes:

• Minimal Batcher Implementation: Capable of directly matching orders against one another.
• Advanced Features:
  • TxChaining: Enables multiple otherwise consecutive transactions to be included in a single block for efficient and fast order matching.
  • Liquidity Pool Matching: Ability to match orders against liquidity pools for overall improved liquidity of the markets.

By providing these tools, we aim to empower developers to:

• Interact with orders placed on MuesliSwap and other orderbook DEXs that also leverage AMMs
• Tap into existing liquidity.
• Build their own projects or become market makers.
• Innovate using our advanced features.

Our solution addresses the lack of accessible batcher implementations and fosters innovation within the Cardano ecosystem.

[Your Project and Solution] Impact

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

Our project will significantly benefit the Cardano community by:

• Empowering Developers: Providing open-source tools that enable developers to build upon our orderbook and integrate with MuesliSwap and easily adapt the batcher to other DEX logics
• Enhancing Liquidity: Encouraging more market makers to participate, increasing overall liquidity.
• Fostering Innovation: Allowing projects to learn from and implement advanced features like TxChaining and LP Matching.
• Improving Efficiency: Leading to faster swaps and better user experiences.

We will measure our impact by:

• Developer Engagement Metrics: Tracking downloads, forks, and contributions to the repository.
• Integration Count: Monitoring the number of projects integrating our batchers.
• Trading Volume Increase: Assessing the growth in trading volume facilitated by our tools.

And share outputs:

• Openly sharing code and documentation via public repositories.
• Engaging with the community through forums, developer channels, and social media.

[Your Project and Solution] Capabilities & 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?

Our team's capability and approach:

Proven Experience: We already operate MuesliSwap, a leading decentralized exchange on Cardano.

Technical Expertise:

1. Chris: Experienced project manager coordinating successful blockchain projects.
2. Pascal: Skilled off-chain developer with expertise in backend systems and blockchain integrations.
3. Phil: Proficient on-chain developer specializing in smart contract development and auditing, as well as blockchain interactions.

Existing Infrastructure: We currently run our own matchmakers that we can use a reference implementation and building block for this proposal

Trust and Accountability:

• Transparent fund management with regular financial reporting.
• Adherence to project timelines with milestone updates.
• Open communication with the community and stakeholders.

Validating Feasibility:

• Utilizing our operational experience to ensure technical viability.
• Engaging in rigorous testing and code audits.
• Gathering feedback from the developer community during the development process.

[Milestones] Project Milestones

Milestone Title

Base Implementation (Base Batcher)

Milestone Outputs

Develop and release a first batcher iteration capable of directly matching orders on the MuesliSwap orderbook. The batcher will be developed with Python, Ogmios and PyCardano and open-sourced in our Github repository.

Acceptance Criteria

• Code completed, tested, and published in a public GitHub repository.
• Comprehensive documentation provided for developers.
• Testing document showcasing created transaction by the batcher and proof tha they sucesffuly executed onn the blockchain

Evidence of Completion

• Link to Public GitHub repository with batcher code and documentation
• announcemnet of Milestone on our official community channels

Delivery Month

2

Cost

23840

Progress

30 %

Milestone Title

Extended Feature Set 1 (TxChaining)

Milestone Outputs

• Implement advanced features such as TxChaining for efficient and fast matching by enabling multiple consecutive transactions to be included into a single block.
• Update documentation to include new features.

Acceptance Criteria

• Advanced batcher code with TxChaining completed, tested, and published.
• Updated documentation covering new functionalities.
• Test section including short explanation of the developed feature and example transactions proving sucesful integration into the Base Batcher

Evidence of Completion

• Updated public repository.
• Release notes and documentation updates.
• Community announcement highlighting new features.

Delivery Month

3

Cost

20630

Progress

50 %

Milestone Title

Extended Feature Set 2 (LP Matching)

Milestone Outputs

• Implement batcher functionality to match orders against other liquidity pools. This includes implementing advanced matching logic for AMM, stable pool price computations
• Finalize all features and ensure stability.

Acceptance Criteria

• Liquidity Pool Matching code completed (supporting Stable and standard AMM pools). The code is thoroughly tested, and published in our Github repository.
• Testing section in our README showing sucesful integration by shortly explaining the concept and providing sucesful transactions as on-chain proof

Evidence of Completion

• Finalized code in public repository.
• Complete documentation accessible to developers.
• Final project report and presentation to the community.

Delivery Month

4

Cost

16300

Progress

90 %

Milestone Title

Project Close-out Report , Video + Documentation

Milestone Outputs

• Submit a detailed project close-out report in PDF format
• Produce a close-out video summarizing the project outcomes according to Catalyst requirements.
• Comprehensive code documentation so that other developers can leverage the development

Acceptance Criteria

• Report meet Catalyst guidelines and is publicly accessible as a PDF document
• Video meets Catalyst guidelines and is publicly accessible
• Code documentation is part of GitHub repsository and is a good entry point for new developers leveraging the code setup

Evidence of Completion

• Submission of the report as PDF on a publicly accessible link
• Submission of th final close-out video according to Catalyst guidelines
• Link to public GitHub repository that holds documentation

Delivery Month

5

Cost

21330

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

All costs are allocated directly to the developers' compensation for their work on the project.

• Milestone 1: Base Implementation - 23840 ADA
  • Off-chain development: 14400 ADA
  • On-chain review and testing: 9440 ADA
• Milestone 2: Extended Feature Set 1 - 20630 ADA
  • Development andTesting of TxChaining features: 14200 ADA
  • Documentation updates: 6430 ADA
• Milestone 3: Extended Feature Set 2 - 16300 ADA
  • Development of LP Matching features: 14000 ADA
  • Final testing and optimization: 2300 ADA
• Final Milestone - 21,330 ADA
  • Final Milstone Report + Close-Out Video
  • Extensive Documentation and testing of the developed feature
  • Misc. Fund for other developments

Total Requested Funds: 82,100 ADA

All funds will be used to compensate the developers for their time and expertise in delivering high-quality, open-source software and pay necesary licensing or server costs that are part of the development workflow.

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

Our project offers significant value for the requested funds:

• Catalyzing Development: By providing essential tools, we lower the barrier to entry for developers building on Cardano.
• Enhancing Ecosystem Efficiency: Advanced features like TxChaining and LP Matching lead to faster swaps and improved user experiences.
• Stimulating Market Activity: More market makers and integrated projects increase liquidity and trading volume.
• Knowledge Sharing: Open-source code allows others to learn from and build upon our work, fostering innovation.

The investment in our project is amplified by the widespread benefits it brings to the entire Cardano community.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes