Hydra Auctions: Driving Real-World ADA Utility

[Proposal setup] Proposal title

Please provide your proposal title

Hydra Auctions: Driving Real-World ADA Utility

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

50000

[Proposal Summary] Time

Please specify how many months you expect your project to last

3

[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?

No adoption without real-world dApps and daily usability.

[Proposal Summary] Supporting Documentation

Supporting links

• https://docs.google.com/presentation/d/170gfNbqORiXTzOCt5r5XLoGEPQmf0lNnC1Har-HDI9w/edit?usp=sharing
,
• https://lacvietauction.vn/

[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

Yes, it works under the GNU General Public License (GPL) v3.0 License.

[Theme Selection] Theme

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

E-commerce

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).

Most blockchain auction have focused only on digital assets (NFT art, spectrum rights, energy credits), not the regulated, real-world auctions of state-owned property. Our proposal is the first to combine Cardano Hydra Layer-2 scalability with a regulatory-aware design for tangible assets, fully compliant with Vietnam’s auction laws.

🍀 Our pproach have already peer-reviewed and published (ICCSCI 2025, Elsevier Procedia Computer Science).

🍀 Unlike prior work, this approach is not limited to Vietnam, it provides a blueprint ready for adoption by other countries.

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

Our MVP will showcase a Hydra-powered decentralized auction platform for state-owned tangible assets:

🍀 On-chain bidding with Hydra Layer-2 → low fees, fast finality, high throughput

🍀 NFT tokenization of physical assets with verifiable IPFS metadata

🍀 Hybrid compliance workflows (KYC, deposits, legal checks) off-chain, aligned with local law and adaptable globally

🍀 Immutable bid logs + transparent winner selection → no fraud, full trust

Field-tested prototype, accessible at https://lacvietauction.vn

Describe realistic measures of success, ideally with on-chain metrics.

🍀 Bid Finality: Powered by Hydra finality - ensuring fast confirmation, seamless bidding experience.

🍀 Cost Reduction: Per-auction operating costs.

🍀 Throughput: Sustain 100+ qualified bids per auction with no performance degradation, scaling further under Hydra heads.

🍀 Trust & Transparency: 100% of bids immutably logged on-chain, eliminating fraud/shill bidding.

🍀 Adoption Metrics: Number of auctions executed, assets tokenized (NFTs on Cardano), and ADA transaction volume generated.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

📌 Key Problems to Solve

🍀 Fraud & Manipulation – Shill bidding, phantom bids, and bid sniping erode trust in state auctions.

🍀 Opaque Systems – Centralized platforms allow server-side edits, with no immutable audit trail.

🍀 High Costs – Current auction fees average ~$80 per session, discouraging participation.

🍀 Slow & Unscalable – Can’t handle high bidder volume with near-zero bid confirmation.

🍀 Limited Adoption – No legally compliant, blockchain-based solution for tangible assets, blocking real-world ADA utility.

📌 Proposed Solution

🍀 Hydra-Powered Auctions – Use Cardano Layer-2 Hydra for fast finality (<5s), low fees, and scalable on-chain bidding.

🍀 Tokenizing State Assets – Convert real-world assets (cars, apartments, machinery, etc..) into NFTs with verifiable IPFS metadata.

🍀 Hybrid Compliance – Keep KYC, deposits, and legal verification off-chain, ensuring full compliance with national laws.

🍀 Trust & Transparency – All bids are immutable and auditable, eliminating fraud and restoring bidder confidence.

🍀 Global Blueprint – A field-tested, regulation-ready model in Vietnam, easily replicable for other countries, driving real ADA adoption.

[Your Project and Solution] Impact

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

📌 Positive Impact on the Cardano Community

🍀 Real-World Adoption: Demonstrates Hydra Layer-2 in live government auctions, proving Cardano’s ability to handle national-scale, regulated systems.

🍀 Increased ADA Utility: Every bid, NFT mint, and asset transfer generates real on-chain ADA transactions, driving sustained volume.

🍀 Global Blueprint: A regulation-ready model starting in Vietnam but replicable in other countries, positioning Cardano as the standard for compliant asset auctions.

🍀 Ecosystem Growth: Attracts governments, enterprises, and new users into the Cardano ecosystem, expanding both adoption and investor confidence.

[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?

We are Lac Viet Auction House - the first government-authorized auction house in Vietnam. Since 2019, we have been selling state-owned assets through our online auction platform on behalf of the Vietnamese government at https://lacvietauction.vn/

📌 Below is a glance of our centralized auction

• Average number of successful auctions per week: 3
• State-owned assets: 80%
• Other assets: 20%
• Number of registered active users: 10,000+
• An examploff of our offline-to-online auction event: https://www.youtube.com/watch?v=AmziPtCca5c

📌 Proven Track Record

Our team has already delivered 02 peer-reviewed papers, published prototype on BSC

• ICCSCI 2025, Elsevier Procedia Computer Science.
• The 14th International Conference on Electronic Government and the Information Systems Perspective (EGOVIS 2025) in Bangkok, Thailand, from 25 to 27 August 2025.
• The paper will be published by Springer in the Lecture Notes in Computer Science (LNCS) series, indexed in Scopus, EI Engineering Index, and Web of Science.

📌 Accountability

We operate with transparent fund usage, milestone-based reporting, and on-chain audit trails, ensuring that investor and community resources are managed with full trust and accountability.

[Milestones] Project Milestones

Milestone Title

Hydra Auction Smart Contracts

Milestone Outputs

• Development of Cardano/Hydra-based smart contracts for NFT minting, on-chain bidding, anti-sniping, and settlement with full compliance logic.
• Seamless integration with existing auction system at https://lacvietauction.vn to bridge real-world assets with Cardano on-chain.

Acceptance Criteria

• Contracts successfully deployed on Hydra testnet with all auction functions (minting, bidding, anti-sniping, settlement).
• Code is open-sourced on GitHub, reviewed by peers, and validated via at least 3 test auctions with live bidders.

Evidence of Completion

• Public GitHub repository containing audited smart Public GitHub repository containing Hydra-based contracts with documentation.
• Demo video showing end-to-end Hydra bidding in action (registration → bid → close → settlement).
• Testnet auction records confirming functionality and transaction finality.

Delivery Month

2

Cost

15000

Progress

40 %

Milestone Title

MVP Auction Platform (Front-End + Compliance Layer)

Milestone Outputs

• User-friendly web interface; integration of off-chain workflows (KYC, deposits, legal checks, etc..).
• Pilot auctions of tokenized real-world assets (cars/apartments) on mainnet.
• Public announcement on website: https://lacvietauction.vn/

Acceptance Criteria

• End-to-end auction (registration → bid → settlement) runs on Cardano/Hydra mainnet.
• Minimum 5 selected real-world auctions executed; 100+ qualified bidders; on-chain bid logs.
• Press release announcing the adoption of Cardano.

Evidence of Completion

• Live demo link, test auction records on Hydra chain.
• Cardano/Hydra on-chain metrics (finality, gas, volume), published pilot report.

Delivery Month

2

Cost

20000

Progress

90 %

Milestone Title

Project Close-out Report and Video

Milestone Outputs

• An international peer-reviewed publication indexed in ISI/Scopus presenting results.
• A comprehensive final report (technical, cost savings, adoption, blueprint).
• A professional video for Cardano community and ADA holders.

Acceptance Criteria

• Paper accepted and published in ISI/Scopus journal or international conference.
• Final report publicly available on GitHub & Cardano forum.
• Video released on Youtube, via Cardano Catalyst channels.

Evidence of Completion

• DOI link to ISI/Scopus-indexed publication or official acceptance email from the organizer.
• Public link to final report with documented metrics.
• Public link to published video for Cardano community/investors/stakeholders.
• On-chain data and GitHub repo confirming project outcomes.

Delivery Month

1

Cost

15000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Total Budget: 50,000 ADA (5 months).

📌 Milestone 1 – Hydra Auction Smart Contracts (15,000 ADA, 2 months)

• Smart contract design & Hydra integration: 8,000 ADA
• Security audit & testing: 4,000 ADA
• Documentation & GitHub publishing: 3,000 ADA

📌 Milestone 2 – MVP Auction Platform (20,000 ADA, 2 months)

• Front-end development & bidder dashboard: 7,000 ADA
• Off-chain compliance integration (KYC, deposits, legal checks): 5,000 ADA
• Pilot auction execution on Hydra mainnet: 5,000 ADA
• Public announcement, community engagement: 3,000 ADA

📌 Milestone 3 – Project Close-out Report & Video (15,000 ADA, 1 month)

• ISI/Scopus-indexed peer-reviewed publication: 5,000 ADA
• Final technical & adoption report: 4,000 ADA
• Professional investor-oriented video production: 4,000 ADA
• On-chain data validation & dissemination: 2,000 ADA

[Final Pitch] Value for Money

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

• Direct ADA Utility: All auctions run on Cardano/Hydra, generating continuous on-chain transactions, NFT mints, and settlement fees — converting funding into sustained ADA volume.
• Network Growth: The project onboards hundreds of verified users (bidders, asset owners, legal partners) into the Cardano ecosystem, creating new wallets and active participation beyond speculative use cases.
• Scalability Proof: By demonstrating Hydra’s high-throughput, low-fee capability in a real-world regulated sector (public asset auctions), the project strengthens Cardano’s position as a leader in enterprise-grade blockchain adoption.
• Open Source & Replication: All smart contracts, reports, and compliance workflows are open-sourced, allowing the entire Cardano community (developers, startups, enterprises) to reuse and scale the solution globally at zero additional cost.
• Global Visibility: Peer-reviewed publications and professional videos provide academic credibility and global exposure, raising Cardano’s brand reputation in both enterprise and government sectors.
• Multiplier Effect: A relatively modest budget (50,000 ADA) unlocks a long-term pipeline of asset tokenization and auctions, positioning Cardano as the default chain for real-world assets (RWA).

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes