Next-Gen Open Orderbook Exchange

[Proposal setup] Proposal title

Please provide your proposal title

Next-Gen Open Orderbook Exchange

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

96000

[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?

DeFi on Cardano is limited by closed or outdated DEX designs. We deliver a next-gen open orderbook DEX, enabling advanced features, transparency, and broad ecosystem growth.

[Proposal Summary] Supporting Documentation

Supporting links

• https://muesliswap.com
,
• https://x.com/muesliswapteam

[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

All project outputs will be fully open source under the MIT License. This includes smart contracts, documentation, and supporting materials. Code will be hosted on GitHub to ensure transparency, easy access, and community collaboration. By open-sourcing every component of the next-gen orderbook DEX, we empower developers to build upon, audit, and extend our work, fostering innovation within the Cardano ecosystem.

[Theme Selection] Theme

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

DEX

[Campaign Category] Category Questions

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

Unlike prior AMM-focused or closed DEX implementations on Cardano, our idea delivers fully open-source next-gen orderbook smart contracts. These contracts enable advanced features such as time-based orders and auto-canceling, improving efficiency and transparency. By open-sourcing the entire system, we empower developers to extend functionality, build new tools, and foster greater community-driven innovation in the Cardano DeFi ecosystem.

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

Our MVP will showcase a functional next-gen orderbook DEX on the Cardano testnet, demonstrating seamless order placement, matching, and execution using the new smart contracts. It will include integration with a basic frontend, showing real trades executed on-chain. This prototype will be publicly accessible on GitHub, along with documentation and testnet deployment instructions, enabling anyone in the community to interact, test, and contribute.

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

Success will be measured both quantitatively and qualitatively. On-chain, we will track number of transactions executed, volume traded, and unique wallets interacting with the DEX. Developer success will be measured by forks, pull requests, and external integrations with the open-source contracts. Community value will be captured through adoption, user feedback, and engagement across Cardano forums and social channels, reflecting transparency and usability gains.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

The problem we are addressing is the lack of a fully open-source and advanced orderbook DEX within the Cardano ecosystem. Existing decentralized exchanges on Cardano have either focused on AMM models or have not provided complete open-source transparency. This limits innovation, developer contributions, and the ability for the community to build new tools and services on top of proven smart contract infrastructure.

Our solution is to develop and publish next-generation orderbook smart contracts, designed specifically for Cardano, and release them fully under an MIT open-source license. These contracts will include advanced features that are not feasible in AMM-based DEX designs, such as:

• Time-based orders with auto-canceling to increase efficiency and reduce clutter on the orderbook.
• Optimized matching logic for lower-cost, more efficient trades.
• Transparent contract design, ensuring the community can verify the correctness and security of the protocol.

To demonstrate the practicality of these contracts, we will integrate them into a working frontend, allowing users to interact with the orderbook, place trades, and experience the new system first-hand on Cardano.

By combining technical innovation with open-source transparency, we directly address the current gap in Cardano DeFi infrastructure. This enables both traders (who gain more efficient and fair tools) and developers (who gain an extensible foundation to build upon).

[Your Project and Solution] Impact

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

Our project will generate three major categories of impact for the Cardano ecosystem:

1. Value to Users

• Traders gain access to a transparent, efficient, and feature-rich orderbook DEX.
• Advanced order types (like auto-canceling) create a better user experience compared to current options.
• By being fully open-source, users can trust that there are no hidden mechanisms or closed logic in the contracts.

2. Value to Developers

• Developers will have direct access to all smart contracts, frontend integration code, and documentation.
• This provides a reference implementation for building new tools, bots, or custom integrations.
• The project’s open-source nature encourages contributions, extensions, and independent audits, strengthening the ecosystem.

3. Value to the Cardano Ecosystem

• By setting a new transparency standard, this project contributes to Cardano’s reputation as a trustworthy and innovative DeFi platform.
• The project lowers the barrier to entry for new teams wanting to experiment with or extend orderbook-based DeFi solutions.
• It stimulates ecosystem growth by enabling others to build additional layers (aggregators, wallets, analytics) on top of the open contracts.

Impact measurement will be done both quantitatively and qualitatively:

• On-chain metrics: transaction volume, unique wallets interacting with the DEX.
• Developer activity: forks, pull requests, and third-party integrations with our open-source contracts.
• Community engagement: social media, forums, and surveys tracking feedback and adoption.

In short, the project brings greater efficiency, openness, and innovation capacity to Cardano DeFi, strengthening the ecosystem in a measurable and sustainable way.

[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?

The team is uniquely positioned to deliver this project with high levels of trust and accountability, for several reasons:

1. Proven Track Record

• We were the first DEX on Cardano, launching months ahead of competitors.
• Our team introduced the hybrid AMM-Orderbook DEX model, still unique in the ecosystem.
• We have successfully delivered multiple Catalyst-funded projects in the past, always meeting expectations and providing transparent updates.

2. Technical Expertise

• Our team consists of experienced blockchain developers specializing in Cardano smart contracts, frontend/backend integration, and security.
• We have direct experience building complex, high-performance orderbook infrastructure, making us particularly qualified to design the next-gen version.

3. Feasibility and Validation

• The solution will be validated first through internal auditing and testing.
• A testnet deployment will provide public verification and community feedback before mainnet launch.
• All code will be open-sourced on GitHub, enabling external developers to review, test, and audit the implementation.
• Clear milestones and deliverables ensure accountability at every stage.

4. Commitment to Transparency

• By releasing the project under the MIT License, we ensure that every part of the system is free to use, inspect, and extend.
• All progress, documentation, and community updates will be publicly shared via GitHub and social channels.

In conclusion, the MuesliSwap Team combines experience, technical capability, and a proven record of delivering high-impact projects. Our approach ensures feasibility through staged development, testing, and open collaboration, providing the Cardano community with both immediate value and long-term infrastructure benefits.

[Milestones] Project Milestones

Milestone Title

Research & Architecture

Milestone Outputs

We will carry out in-depth research into existing orderbook DEX designs, including best practices from Cardano and other ecosystems. Based on this, we will create a next-gen architecture that defines the smart contract logic, system workflows, and frontend interactions to ensure efficient and transparent trading.

Acceptance Criteria

A detailed design and research document will be finalized, clearly outlining the contract features, frontend–backend interaction flows, and developer guidelines. The document must provide sufficient clarity to act as the foundation for later development stages.

Evidence of Completion

Research report and architecture documentation will be published on GitHub, publicly accessible for review and feedback, ensuring community transparency from the very beginning.

Delivery Month

1

Cost

20000

Progress

20 %

Milestone Title

Smart Contract Development

Milestone Outputs

Development of the next-gen orderbook smart contracts with advanced features such as auto-canceling and time-based orders. The contracts will be optimized for transaction efficiency and written with best-practice security measures. Internal auditing and reviews will ensure that the contracts meet high reliability standards.

Acceptance Criteria

Smart contracts must be fully functional and implement all planned features according to the architecture. They must also pass an internal audit confirming that no critical vulnerabilities exist. Contracts should be ready for deployment to the testnet.

Evidence of Completion

The complete set of smart contracts will be published on GitHub under the MIT License, together with an internal audit report. This ensures full transparency and allows the community to review and verify the work.

Delivery Month

2

Cost

40000

Progress

60 %

Milestone Title

Frontend Integration & Testing

Milestone Outputs

We will integrate the frontend application with the new orderbook smart contracts, enabling end-to-end functionality such as placing, matching, and canceling trades. This milestone also covers comprehensive system-level testing, including optimization for performance, usability, and reliability under real testnet conditions.

Acceptance Criteria

Demonstration of seamless interaction between frontend and smart contracts, validated by testnet transactions. Users should be able to submit orders via the frontend and observe successful execution on-chain. Any performance bottlenecks must be addressed before final deployment.

Evidence of Completion

Transaction IDs from testnet trades will be shared publicly, along with frontend demo code and testing results. These will be published on GitHub so developers and community members can validate the integration independently.

Delivery Month

4

Cost

30000

Progress

90 %

Milestone Title

Deployment & Documentation

Milestone Outputs

The fully functional next-gen orderbook DEX will be deployed live on Cardano. Alongside the deployment, we will produce comprehensive documentation and tutorials explaining system setup, usage, and developer integration. Outreach will include public announcements via community channels to drive adoption and feedback.

Acceptance Criteria

The DEX must be live and accessible to all Cardano users. Documentation and tutorials must be user-friendly and cover both end-user trading and developer integration. Positive initial feedback from the community will validate usability and value.

Evidence of Completion

Live deployment link, GitHub documentation/tutorials, and announcements published on official MuesliSwap social media (Twitter/X, Medium). These serve as proof of completion and provide resources for continued community engagement.

Delivery Month

5

Cost

6000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

The total budget requested is 96,000 ADA, structured to cover all core development, auditing, integration, and community-facing tasks. The budget reflects realistic compensation for specialized blockchain developers and necessary operational resources.

• Smart Contract Development (≈60%) - Around 58,000 ADA allocated to developer time for coding, testing, and optimizing the next-gen orderbook smart contracts. This includes implementing advanced features and conducting internal reviews.
• Frontend Integration and Testing (≈20%) - Around 19,000 ADA allocated to integrating the frontend with the smart contracts, performing system-level testing on the testnet, and optimizing usability and reliability.
• Research, Architecture, and Documentation (≈10%) - Around 9,000 ADA allocated to initial research, architectural design, and writing developer documentation to ensure that the system is transparent and replicable.
• Community Outreach, Deployment and Marketing (≈10%) - Around 10,000 ADA allocated to community engagement, tutorials, outreach, and deployment activities to encourage adoption and developer contributions.

If project costs exceed the estimated budget, MuesliSwap will draw on operational funds to ensure successful delivery.

[Final Pitch] Value for Money

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

The budget is designed to maximize long-term value for the Cardano ecosystem by focusing resources on core open-source infrastructure that benefits users, developers, and the wider DeFi space.

• High Impact for Cost: Specialized smart contract development is resource-intensive, but our budget ensures delivery of a production-ready, fully open-source system at a fraction of the cost of closed-source competitors.
• Open-Source Multiplication Effect: By releasing everything under the MIT License, the outputs become a public good. Developers across the ecosystem can fork, audit, and extend the work without restriction, multiplying the impact far beyond this single proposal.
• Ecosystem Growth: The resulting orderbook DEX introduces advanced, efficient trading features, making Cardano DeFi more competitive with other blockchains. This strengthens adoption and attracts both users and developer talent.
• Transparency and Trust: By committing to open-source transparency, we set a strong example for accountability, which supports Cardano’s reputation as a secure and community-driven blockchain ecosystem.

Overall, the 96,000 ADA investment results in the creation of critical infrastructure that both addresses immediate needs and supports long-term ecosystem innovation.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes