Last updated 8 months ago
Cardano lacks a unified, non-custodial liquidity layer, limiting DEXs and dApps from trustless, permissionless access to deep, composable liquidity.
Delivering advanced auto-limit market-making on Wizard, boosting Cardano’s liquidity depth, efficiency, and composability for DEXs, dApps, and the broader DeFi ecosystem.
This is the total amount allocated to Auto Limit orders for Market Making on Cardano.
Please provide your proposal title
Auto Limit orders for Market Making on Cardano
Enter the amount of funding you are requesting in ADA
100000
Please specify how many months you expect your project to last
4
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Cardano lacks a unified, non-custodial liquidity layer, limiting DEXs and dApps from trustless, permissionless access to deep, composable liquidity.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
NO dependencies
Will your project's outputs be fully open source?
No
License and Additional Information
Not initially
Please choose the most relevant theme and tag related to the outcomes of your proposal.
DEX
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
Wizard’s “Auto Limit Order” introduces dynamic, on-chain pricing that updates automatically based on live market data, eliminating the need for manual price edits or multiple transactions. Unlike static limit orders or off-chain bots, it works entirely within Cardano’s smart contracts using signed market feeds for trust. This approach lays the foundation for advanced grid and market-making strategies, a first of its kind permissionless tool in Cardano’s DeFi ecosystem.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
The MVP will showcase Wizard’s on-chain “Auto Limit Order,” starting as a regular limit order where users set a premium (%) above/below live market price, auto-updated via trusted signed feeds to avoid manual edits and extra fees. Accessible at wizard.market on Cardano testnet/mainnet via integrated wallets. Future builds will expand into grid-style interfaces, inventory-based strategies, and advanced market-making tools.
Describe realistic measures of success, ideally with on-chain metrics.
• On-chain volume traded through Wizard Auto Limit
• Unique wallets using autolimit features
• Depth and spread coverage of live order books
• Daily fill rates and stablecoin arbitrage efficiency
All metrics will be trackable via on-chain data and public dashboards.
Please describe your proposed solution and how it addresses the problem
Proposed Solution
A core challenge in Cardano’s DeFi landscape is liquidity depth. Orderbooks are often thin, creating high slippage, unfavorable pricing, and reduced market participation.liquidity solutions are often constrained by fixed contract logic, often failing to respond to real market demand and exposing participants to impermanent loss.
Wizard addresses this by introducing a non custodial, on-chain market-making framework built around flexible, self-updating limit orders. This allows users to act as market makers without being locked into shared liquidity models.
The MVP begins with the Auto Limit Order a new order type where users set a premium (%) above or below live market price. The order’s price updates automatically via trusted, signed market feeds, removing the need for manual updates and extra transaction fees. This keeps orders competitive while remaining fully non-custodial and composable with other dApps.
Uniquely, Wizard also enables single-side market making which is the ability to place multiple self-updating limit orders on just one side of the market. This means a user can continuously provide sell-side or buy-side liquidity, earn profits from the premium, and in future versions, compound those profits into the opposite side of the pair to evolve into full two-way market making. This removes the inefficiencies of traditional AMM-based liquidity provision, avoids impermanent loss, and gives participants precise control over their capital.
Future development beyond MVP includes:
1. Grid Trading Interfaces – Simplified multi-order placement across price ranges for efficient automated market making.
2. Inventory-Based Strategies – Dynamic allocation between assets, optimizing for spread capture and liquidity coverage.
3. Two-Way Auto Limits – Seamless switching between buy and sell orders using independent premium settings.
4. Profit Compounding – Automated reinvestment of premium gains into the opposite side to grow liquidity depth over time.
5. Advanced Execution Tools – Conditional orders, time-based execution, and integrated analytics for professional-grade market making.
By enabling single-side market making, dynamic pricing, and composable tools through the permissionless Wizard orderbook, our solution lowers barriers to entry and encourages more participants to provide non custodial liquidity. This directly improves depth, reduces spreads, and creates a healthier trading environment for all Cardano users.
Please define the positive impact your project will have on the wider Cardano community
Positive Impact on the Wider Cardano Community
The Cardano DeFi ecosystem has grown rapidly in the number of projects, trading pairs, and active users. However, one of its biggest limitations remains liquidity depth. Without deep, competitive orderbooks, traders face high slippage, market inefficiencies, and reduced confidence in using on-chain markets. Liquidity providers, in turn, are often forced into shared AMM contracts that:
• Lock funds into fixed strategies that don’t respond to market demand
• Expose participants to impermanent loss
• Reduce flexibility and composability with other protocols
Wizard directly addresses this problem by introducing permissionless, on-chain market-making tools designed to be accessible, flexible, and capital efficient.
Key Impacts
1. Increased Liquidity Depth Across Cardano
• By making it easier for any user to place competitive, self-updating orders, Wizard encourages broader participation in non custodial market making.
• This drives deeper orderbooks, tighter spreads, and better execution prices across integrated dApps and DEXs.
2. Empowering Single-Side Market Makers
• Wizard’s model allows users to market make on only one side of the market, avoiding the capital lock-up and impermanent loss risks of traditional pools.
• This opens the door for more retail users and niche strategies, leading to sustained and diversified liquidity sources.
3. Reducing Barriers to Entry for Liquidity Provision
• The Auto Limit Order feature removes the need for constant manual updates, letting users “set and forget” competitive pricing strategies.
• Lower transaction fees means lower costs, making market making viable even for smaller participants.
4. Composability with the Cardano Ecosystem
• Built on a permissionless orderbook, Wizard can integrate seamlessly into other dApps, DEXs, and DeFi protocols.
• This creates a shared liquidity layer that benefits the entire network, not just Wizard’s direct users.
5. Progressive Tooling for Professional and Retail Users
• As the platform expands, advanced features such as grid trading interfaces, inventory-based strategies, and profit compounding will allow users to scale from simple single-side orders to sophisticated two-way market making.
• This encourages skill development, experimentation, and retention of liquidity providers in the Cardano ecosystem.
6. Long-Term Resilience of On-Chain Markets
• Deep, diverse liquidity is a cornerstone of a healthy DeFi environment.
• By decentralizing market-making capabilities, Wizard reduces reliance on a handful of large liquidity providers and mitigates the risk of sudden liquidity shocks.
Why This Matters for the Wider Community
• For Traders: They get better prices, reduced slippage, and more reliable markets.
• For Liquidity Providers: They gain greater control, flexibility, and potential for profit without being forced into pooled models that may not match their risk tolerance.
• For dApps and DEXs: They can tap into an existing permissionless liquidity layer and source liquidity for their own use cases and decrease impermanent loss
• For the Ecosystem as a Whole: Liquidity depth and diversity make Cardano more competitive with other chains, attracting users, volume, and developers.
Wizard’s impact extends beyond a single product, it lays the groundwork for a self-sustaining liquidity infrastructure that can scale with Cardano’s growth. By making market making accessible, efficient, and composable, Wizard strengthens the economic backbone of Cardano DeFi, ensuring that the ecosystem can support more assets, more participants, and more innovation in the years to come.
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?
Wizard is being developed by a lean team with a strong background in DeFi product design and market dynamics. After building core logic for automated market maker (AMM) DEXs, the team realised that an orderbook approach offers greater efficiency and flexibility for advanced trading strategies. This insight drove the design of Wizard’s infrastructure, which allows for non custodial market making within a permissionless orderbook framework.
Wizard partnered with seasoned Cardano developers who handle smart‑contract development, testing, and another party for auditing. This collaboration combines a clear product vision with the technical expertise needed to deploy complex on‑chain logic safely.
Key components such as custom validators, datum structures, and order placement flows have already been prototyped and tested. Feasibility will be validated through staged testing and measurable outcomes. Internal and public simulations will verify order‑matching and compounding logic before release. A public testnet will enable broader testing of single‑side and two‑way orders, and partnerships with wallets, dApps and aggregators will ensure compatibility across the ecosystem. Success metrics will include on‑chain orderbook depth, fill rates, liquidity utilization and spread compression particularly for stablecoin pairs which will be published through community dashboards. Regular progress updates and transparency reports will reinforce accountability as Wizard moves toward mainnet.
By leveraging experience with adopting a more efficient orderbook model, collaborating with experienced Cardano developers (Tx Pipe) and engaging independent auditors, Wizard is well positioned to deliver a reliable and advanced market‑making platform on Cardano while validating its feasibility through clear testing milestones and performance metrics.
Milestone Title
Auto limit
Milestone Outputs
Implement the new “auto limit order” contract logic and ensuring the order type is integrated into the Wizard protocol.
Develop the backend service to monitor market prices, calculate dynamic order prices based on the user‑defined premium, and provide a signed price message with a timestamp.
Build a user interface that allows users to select the trading pair and set a premium, submits the order to the contract, and shows the updated price in real time without modifying the on‑chain datum.
Acceptance Criteria
Users can specify a positive or negative premium percentage when placing an auto‑limit order, ensuring the order adjusts relative to the live market price
.
The off‑chain service must recalculate the order price using the latest market data and the user’s premium, and the frontend must display these updates accurately.
.
To fill an order, a transaction must include a price message signed with a recent timestamp, the contract only accepts the fill if the paid price matches the required premium above or below the market price
.
A publicly accessible endpoint must be live, returning signed price messages that third‑party builders can use to compose their own transactions
.
Successful end‑to‑end validation on testnet: auto‑limit order placed with the new logic and later filled, demonstrating that the premium, price‑feed integration and contract enforcement all work as intended.
Evidence of Completion
Provide compiled contract artifacts for the new auto‑limit order type, along with unit‑test results proving the contract checks both the premium field and the signed price message.
Produce log excerpts or sample API responses from the price‑feed service, showing the expected message structure and signature.
Share testnet transaction IDs and visual proof (screenshots or short demo video) of an auto‑limit order being placed with a premium, the UI updating with live prices, and another account filling the order at the correct premium.
Submit a short milestone report summarising how to use the new order type, including front‑end screenshots and links to testnet demonstrations.
Delivery Month
2
Cost
40000
Progress
30 %
Milestone Title
Multi auto limit order management via grid interface
Milestone Outputs
A grid interface that lets users configure and manage multiple auto‑limit orders across a price range, each defined by its own premium and associated token pair.
Extension of the smart‑contract logic to handle simultaneous auto‑limit orders per user, including two‑way orders with separate premium fields for each side as described in the Auto Limit specification.
Off‑chain services to monitor market prices and recompute prices for every order in the grid, updating the UI in real time without changing on‑chain data.
Front‑end controls for bulk creation, modification and cancellation of orders, and summary dashboards showing order status and projected inventory exposure.
Acceptance Criteria
• Users can create, edit and cancel multiple auto‑limit orders via the grid interface, with each order storing its own premium and dynamically updating its target price based on live market data.
• Two‑way grid orders are supported: for each token pair, the user specifies distinct premiums for buying and selling, and these premiums are enforced by the contract when orders are filled.
• The grid UI correctly shows the recalculated prices for each order in response to market movements, and the underlying service ensures that signed price messages and timestamps are supplied for each fill.
• Successful testnet demonstration of grid trading: at least one user creates multiple orders across a price range, the system updates prices automatically, and other accounts fill those orders at the correct premium.
• Performance metrics (e.g. number of active orders).
Evidence of Completion
• Screenshots or screencasts of the grid UI showing multiple orders with distinct premiums, price updates in action and bulk management functions.
• Contract artifacts and test results proving that the contract supports multiple auto‑limit orders and enforces the premiums for each side of two‑way orders.
• Logs or API responses from the price‑feed service showing it can handle batch price requests and returns signed messages for multiple orders with correct timestamps.
• Testnet transaction IDs confirming that orders created through the grid interface were executed at the specified premiums, along with a summary report documenting the demonstration and metrics collected.
Delivery Month
3
Cost
30000
Progress
30 %
Milestone Title
Stablecoin MM Strategy & Compounding Logic
Milestone Outputs
• Smart-contract and back-end logic enabling an automated market-making strategy optimised for stablecoin pairs, leveraging the auto-limit order framework.
• Compound logic allowing profits from completed trades to be automatically reinvested into the opposite side of the trading pair, gradually building toward a two-way market-making position.
• Parameter options in the UI for setting compounding preferences (e.g., percentage of profit to reinvest, minimum thresholds).
• Backend enhancements to monitor realised PnL from auto-limit fills, calculate compound allocations, and trigger new orders accordingly.
Stretch output (non-guaranteed): Ability for a single order to accept multiple stablecoins as payment in the same swap, expanding execution flexibility.
Acceptance Criteria
• Users can select a stablecoin pair and activate an auto-limit strategy designed for low-volatility spread capture.
• The system tracks profits from each filled order and—if compounding is enabled—automatically allocates those profits into new orders on the opposite side of the pair.
• Compound logic respects user-defined parameters, including reinvestment percentage and thresholds.
• Contract enforces all premiums and verifies signed market prices as in Milestones 1 & 2, even when compounding or multi-asset fills are involved.
• If implemented, multi-stablecoin acceptance must allow a single order to fill using any of the supported stablecoins without manual user intervention.
• At least one full compounding cycle (order fill → profit reinvestment → new order execution) is demonstrated successfully on testnet.
Evidence of Completion
• Contract artifacts and test results showing the compounding logic functions correctly and remains compliant with premium enforcement and signature validation.
• Backend logs illustrating profit calculation, compound allocation, and order creation flows.
• Screenshots or screencasts of the UI showing configuration of compounding settings, stablecoin pair selection, and live demonstration of compounding in action.
• Testnet transaction IDs proving:
1. Initial order placement and fill.
2. Profit calculation.
3. Automatic creation and execution of a compounded order.
• If the stretch goal is achieved, API logs and transaction IDs showing successful execution of a single order using multiple different stablecoins.
• A milestone summary report describing the strategy, compounding behaviour, and test results.
Delivery Month
4
Cost
30000
Progress
20 %
Please provide a cost breakdown of the proposed work and resources
Total requested: 100,000 ADA
• Milestone 1: 40,000 ADA
• Milestone 2: 30,000 ADA
• Milestone 3: 30,000 ADA
Milestone 1 — Auto-Limit Core (40,000 ADA)
• Contract engineering (new order type, premium, fill checks): 22k
• Backend price service (signing, timestamping, verifier): 12k
• Testing & testnet ops (unit/integration, CI, deployment): 6k
Milestone 2 — Grid-Based Multi Order Management (30,000 ADA)
• Contract extensions (multi/2-way auto-limits, bulk ops): 12k
• Backend scaling (batch pricing, queueing, monitoring): 10k
• Performance & reliability testing (load, latency SLAs,Oracle): 8k
Milestone 3 — Stablecoin MM & Compounding (30,000 ADA)
• Contract logic (profit capture, compounding rules): 12k
• Backend PnL tracking & re-allocation engine: 10k
• Testnet demo & metrics; stretch R&D for multi-stablecoin fills*: 8k
*Stretch goal (not guaranteed within budget): orders accepting multiple stablecoins in the same swap.
How does the cost of the project represent value for the Cardano ecosystem?
Value to the Cardano Ecosystem
This proposal directly invests in core DeFi infrastructure on Cardano - permissionless, on-chain tools for market making and liquidity depth. The funded milestones (Auto-Limit Orders, Grid-Based Multi-Order Management, Stablecoin MM & Compounding) will:
• Increase Liquidity Depth & Reduce Slippage
By enabling dynamic, self-updating orders and advanced trading strategies, Wizard will make it easier for more participants to provide competitive liquidity, benefiting all integrated DEXs, dApps, and token communities with Wizard premissonless orderbook boosting use cases for a non custodial liquidity layer .
• Boost Composability & Integration
The smart contracts and backend systems built here are designed to be permissionless and composable, meaning any Cardano project can tap into Wizard’s liquidity layer without building from scratch.
• Accelerate Adoption & Network Activity
More efficient, flexible market-making tools attract both retail and professional liquidity providers, driving higher transaction volumes, more active addresses, and stronger on-chain economic activity.
• Leverage Proven Partnerships
Collaboration with TxPipe and other experienced Cardano engineers ensures these funds are applied with technical excellence and best-practice security, reducing risk and improving long-term maintainability.
While the requested 100k ADA won’t fully cover all development costs, it will speed delivery of features that address one of Cardano DeFi’s most pressing issues liquidity fragmentation & Depth. The outcome is an infrastructure layer that delivers lasting value across the ecosystem, not just for Wizard users.
Terms and Conditions:
Yes
The Wizard team combines deep experience in DeFi product design, protocol architecture, UI/UX, and Cardano smart-contracts abilities. A lean core group drives the vision, supported by specialised external partners for critical development and creative needs.
🧙 Benny Porat (Bamba) Founder and Product Lead
Benny defines the product vision and overall roadmap, aligning Wizard with Cardano’s DeFi needs. He leads business development, integrations, and ecosystem outreach, ensuring that Wizard’s features from a P2P protocol to advanced market-making tools are both technically feasible and user-focused. He also coordinates marketing, and collaboration with external development teams.
💻 Dominik Zachar CTO and Full-Stack Developer
Dominik oversees all technical architecture and integration. He leads the design and deployment of the Wizard protocol, including validator logic, backend services, and front-end systems. His role ensures seamless interactions between UI components, off-chain infrastructure, and Cardano’s on-chain environment.
🔗 TxPipe Strategic Partner
Wizard works closely with TxPipe, a respected engineering firm in the Cardano ecosystem known for its expertise in smart contract development, infrastructure tooling, and network-level optimization. TxPipe contributes to:
• Implementing and optimizing validator scripts for performance and security.
• Providing code review, testing, and deployment support.
• Ensuring best-practice design patterns for composability and scalability.
🛠 External Contributors Creative Partners
• UI/UX Designer: Designs intuitive, professional interfaces that cater to both experienced DeFi traders and newcomers.
• Branding & Creative Studio: Maintains Wizard’s visual identity and ensures consistency across product, web, and community channels.
Advisors:
• IOG-affiliated experts in Bitcoin DeFi and blockchain banking systems, offering insight accurate architecture design and business operations considerations.
• Leader from major Cardano projects, providing technical guidance, integration pathways, and ecosystem alignment.
• Prominent Cardano community member & DeFi expert contributing feedback on market-making strategies, and user experience.
This small, agile team is fully committed to delivering Wizard as a foundational liquidity and market-making layer for Cardano. All core contributors are public and accessible. Progress is communicated regularly through community updates, live demos, and verifiable on-chain activity.