Last updated 5 months ago
Cardano lacks tools for users to choose yield strategies and permitted assets, and to verify trades follow those choices. This keeps cautious users out and slows DeFi activities growth.
Build a small, open demonstrator sits on the Fund 13 vault where users set strategy and whitelist assets, then get clear proofs that trades followed chosen strategies and only used approved assets.
This is the total amount allocated to KnightSafe: Trading Strategy Selector & Asset Controls.
Please provide your proposal title
KnightSafe: Trading Strategy Selector & Asset Controls
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 tools for users to choose yield strategies and permitted assets, and to verify trades follow those choices. This keeps cautious users out and slows DeFi activities growth.
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?
Yes
License and Additional Information
Materials would be on (an) open-source Github repo(s) with Apache-2.0 license.
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Risk Management
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
It adds a user-friendly layer that lets ADA holders customize and enforce how their funds are used, unlike prior projects focused mainly on basic vault functions. It enables strategy selection and asset whitelists, combined with clear, auditable proof that trades follow user-set rules. The open, composable design allows easy integration with other Cardano DeFi apps, creating a scalable standard for transparency and control—addressing cautious users' and institutions’ needs better than before.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
The MVP will demonstrate a working interface where users can select their preferred investment strategies and whitelist specific assets for trading. It will include an execution checker that enforces these user-defined boundaries and provides clear, easy-to-understand proofs showing that all trades comply with the chosen strategy and asset restrictions.
Describe realistic measures of success, ideally with on-chain metrics.
Success means growing user trust and engagement as more ADA holders set strategy and asset controls, with clear, verifiable proofs ensuring compliance. Positive community feedback and integration by other Cardano projects will show the solution’s value and ecosystem impact.
Please describe your proposed solution and how it addresses the problem
Build a small, open demonstrator that sits on top of the Fund 13 vault work vault that lets users set simple boundaries for how their funds may be used:
Please define the positive impact your project will have on the wider Cardano community
Why this massively benefits Cardano:
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?
Built on Fund 13: Reuse the existing self-custodial vault flow (deposit/withdraw, roles, validations).
KnightSafe
Trust and Accountability
KnightSafe has built a strong reputation in the DeFi space, with a proven track record of generating significant trading volume on different DeFi protocols. KnightSafe’s capabilities have been officially recognized through a secured GMX grant, underscoring the value we deliver to the trading community. Our expertise is further validated by the significant Total Value Locked (TVL) on KnightSafe, showcasing our ability to bring substantial liquidity to the Cardano ecosystem. Current TVL reaches $30m and is still growing steadily. By maintaining transparent and secure operations, KnightSafe has become a trusted platform for DeFi users and traders.
Approach Validation
During the GMX's grant period, KnightSafe exceeded $180 million in trading volume, contributing over $100k in trading fees to the GMX protocol. This performance, combined with the additional liquidity KnightSafe provides to the market, has been instrumental in driving ecosystem growth. The volume generated during the grant period speaks to the effectiveness of KnightSafe as a tool, with our trading activities providing direct financial benefits to the GMX protocol and supporting liquidity in the broader market. Furthermore, KnightSafe's strategic partnership with BitBot, a project that recently raised over $3M, reinforces the value and impact of our approach.
Technical Approach Feasibility Research
KnightSafe’s technical approach is not only feasible but has been successfully implemented, as evidenced by the significant trading volume as well as TVL secured by KnightSafe, demonstrates our ability to handle high-frequency trading and liquidity provision. Additionally, the audit conducted by SlowMist underline the feasibility and security of our platform, ensuring KnightSafe’s place as a leading solution in the DeFi space.
Track Record: https://gov.gmx.io/t/knightsafe-gmx-grant-final-report/3847
Partnership: https://hackernoon.com/bitbots-presale-passes-$3m-after-ai-development-update
Milestone Title
Trading Team, Structure and Process Formation
Milestone Outputs
Objectives: Define a clear team structure with specific roles such as trader/quant to design strategies, execution lead to manage trades, risk lead to enforce safeguards, and operations to ensure smooth governance, transparency, and reporting.
Outputs
Acceptance Criteria
There must be a transparent announcement introducing the assigned roles and responsibilities of each member, plus a detailed public guideline post outlining review processes, decision-making mechanics, and conflict resolution steps.
Acceptance criteria
Public post announcing roles.
Public post on operating guideline
Evidence of Completion
Provide verifiable links to the public announcement post confirming team role assignments and a separate link to the published operating guidelines that users and the community can reference.
Evidence
Link to announcement post.
Link to operating guidelines.
Delivery Month
1
Cost
12000
Progress
20 %
Milestone Title
Conceptual Architecture Design
Milestone Outputs
Objective: Produce user interaction workflows that map out how users engage with the system from start to finish. Deliver initial architectural diagrams illustrating system components, data flows, smart contract interactions.
Outputs
Define user interaction workflows
Prepare initial architectural diagrams.
Acceptance Criteria
Complete and publish architecture design documents that clearly define system structure and integration points. Provide user workflow diagrams and system interaction flows, making it easy to understand.
Acceptance criteria
Architecture design documents completed
User workflow diagrams and system interaction flows completed
Evidence of Completion
Release links to a publicly accessible framework or repository where the architecture documents are hosted, along with direct links to diagrams (such as on GitHub, GitBook, or another documentation site).
Evidence
Links to the framework
Links to the workflow diagrams and system interaction flow
Delivery Month
1
Cost
20000
Progress
50 %
Milestone Title
Whitelist Feature Development
Milestone Outputs
Deliver a working prototype that allows users to select preferred strategies and permitted assets. Include an execution checker that automatically blocks any trade or action outside those user-defined boundaries, ensuring adherence to chosen rules while maintaining full transparency and trust.
Outputs
Selection of strategy and assets
Execution checker that blocks actions outside user choices.
Acceptance Criteria
The document provides an overview of smart contracts and script specification
Provide fully functional, well-documented source code with explanatory comments for readability and developer onboarding. Accompany this with a formal document that clearly explains the smart contract architecture, logic, and script specification.
Acceptance Criteria
Evidence of Completion
Release a link to the public GitHub repository hosting the smart contracts and source code, alongside a separate publicly accessible link (GitHub Pages or GitBook) to the detailed specification and documentation. These serve as transparent, verifiable proof of delivery.
Evidence
Smart contract: URL to the public GitHub repository
Documentation: URL to the public specification document on GitHub or GitBook
Delivery Month
1
Cost
56000
Progress
80 %
Milestone Title
Deployment & closeout
Milestone Outputs
Provide a demonstration of the user-facing workflow, allowing users to interact with the vault, select strategies, control assets, and view compliance proofs. Prepare a comprehensive final close-out report summarizing the project’s achievements, challenges, and future recommendations. Produce a final close-out video that visually presents the demo, key features, and outcomes.
Outputs
Development of frontend demonstration
Final close-out report
Final closeout video
Acceptance Criteria
Successfully deliver a demonstration of the frontend user interaction in a publicly accessible format, ensuring usability and clarity. Submit a detailed close-out report documenting the entire project lifecycle and results. Deliver a high-quality close-out video that clearly communicates project highlights, demonstrating both functionality and impact to users.
Acceptance criteria
Construct the frontend and deploy it in a public domain
Close-out report submission
Close-out video submission
Evidence of Completion
Provide public post or webpage that includes direct links to the user-facing demo, the final close-out report, and the close-out video, serving as consolidated verification of project completion and public transparency.
Evidence
Links to frontend
Links to close-out report
Linked to close-out video
Delivery Month
1
Cost
12000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Milestone 1 — Trading Team Formation
ADA 6,000 — Team organisation with roles
ADA 6,000 — Define operating guideline
Milestone 2 — Conceptual Architecture Design
ADA 12,000 — Define user interaction workflows
ADA 8,000 — Prepare initial architectural diagrams
Milestone 3 — Whitelist Feature Development
ADA 28,000 — Selection of strategy and assets
ADA 18,000 — Execution checker that blocks actions outside user choices
ADA 10,000 — Developer documentation and smart contract/script specification.
Milestone 4 — Deployment & Close-Out
Total: ADA 100,000
How does the cost of the project represent value for the Cardano ecosystem?
This ₳100,000 proposal delivers a small, reusable safety layer for DeFi users: users pick a strategy class and allowed assets, and a public compliance view proves trades followed those choices. It turns Fund 13’s vault into a trustable, auditable experience—exactly what cautious users and institutions ask for—without heavy new infrastructure.
Why this is a good use of funds
High leverage, low scope: We build a focused PoC (selector, checks, compliance view) on top of existing Fund 13 work. No complex UI suite, no broad protocol rewrites.
Standard pattern, reusable by others: Open-source code and docs create a copy-paste guardrail any DEX, wallet, or vault can adopt, avoiding duplicated engineering across the ecosystem.
Direct line to growth: Clear user-set boundaries reduce fear of “black-box trading,” converting hesitant holders into participants. More confidence → more deposits, swaps, and recurring activity.
Ecosystem return
More traders, faster: A simple, verifiable control layer lowers the barrier for external traders and institutions.
Less support and risk: Shared guardrails reduce user errors and incident load for projects.
Compounding reuse: As protocols embed the pattern, Cardano gains consistent, auditable execution—supporting sustained TVL and transaction growth.
Net: targeted spend, open outputs, and a pattern that many projects can adopt—strong value for the Cardano ecosystem.
Terms and Conditions:
Yes
KnightSafe's team consists of eight full-time developers proficient in front-end, back-end, and smart contract development. Our tech management team, who used to manage a team of 200, equipped with over ten years’ experience in general-purpose programming languages as well as in solidity, is the perfect candidate to lead the development of KnightSafe.
Ethan Tong - Co-founder
Managed over USD100m+ crypto AUM with 10+ years experience in HFT, market-making and arbitrage (3+ sharpe)
Serial entrepreneur previously backed by top investors including Alan Howard, Dragonfly Capital, HashKey Capital & RIT Capital Partners
Ex-UBS, Block.one, Macquarie, and Credit Suisse
BEng (Computer Science) with First Class Honors from the University of Hong Kong
LinkedIn: https://www.linkedin.com/in/ethantong/
Richard Li - Co-founder
Ex-software engineer at Harmonic (HLIT:NASDAQ) and held dual positions at a top Asia-based digital asset management platform as a portfolio manager and head of structured products
Trading system architect with 10+ years experience leading development of pricing, system architecture and automation
Scholar and US patents holder in data processing and encoding
MPhil & BEng in Computer Engineering with First Class Honors from the Hong Kong - University of Science and Technology
Philip Lam - Co-founder
Director/Responsible Officer (RO) in multi-family offices/hedge funds with USD400m+ AUM
CFA charterholder, Ex-Ernst & Young
BBA (Accounting and Finance) from the University of Hong Kong with full scholarship