[Proposal setup] Proposal title
Please provide your proposal title
SmartContract - Collaterized Debt Obligations for Mortgages
[Proposal Summary] Budget Information
Enter the amount of funding you are requesting in ADA
100000
[Proposal Summary] Time
Please specify how many months you expect your project to last
6
[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 lacks safe asset-backed investment vehicles and there are no existing smart contract based fixed income products that provide liquidity for crypto-based loans and mortgages
[Proposal Summary] Supporting Documentation
Supporting links
[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
Will issue a standardized framework for Mortgage Backed Securities
[Theme Selection] Theme
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Yield
[Campaign Category] Category Questions
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
- Focus is to transcribe an existing institutional traditional finance product into smart contract for wide retail accessibility
- Supporting the FIRST smart contract based RWA-backed loan product in all of crypto.
- Current DeFi yields are generated from trade volume between two token pairs, this enables yield from asset backed financing.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
The MVP shall be able to:
- Package a minimum of 3 collateral tokens from the asset financing smart contract into a bond product
- Issue bond shares to investors
- Offer a payout mechanism for bond investors to claim yield
Describe realistic measures of success, ideally with on-chain metrics.
The emergence of asset financing and fixed income markets will be the ultimate indication of success. Additionally, we should see total network TVL value and transaction volume increase substantially.
[Your Project and Solution] Solution
Please describe your proposed solution and how it addresses the problem
A new Aiken smart contract can wrap around the asset financing smart contract that enables a liquidity layer for loan settlement and the creation of mortgage backed securities for investors to yield dividends on.
[Your Project and Solution] Impact
Please define the positive impact your project will have on the wider Cardano community
- Inreases TVL
- Helps bridge the world of traditional finance with blockchain defi
- Provides liquidity for on-chain mortgage markets
- Makes an institutional investment vehicle available to retail investers
- Makes the health and credit rating of CDO bonds more transparent due to onchain tracability
- Reduces time to construct CDO bonds
[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?
Technical:
Business:
- An undisclosed partnership with a major loan servicing office
- An undisclosed partnership with one of the largest CMO fixed income desks in the world
[Milestones] Project Milestones
Milestone Title
Smart Contract Action Interface
Milestone Outputs
- A well documented and defined set of contract actions and agents.
- Aiken code that outlines and enables the set of actions, a future defined logic set
- Javascript code that executes those actions on chain.
Acceptance Criteria
- Document is delivered that describes the parties that can interact with the contract, the options they have to interact with it, and how they may interact with the contract using CLI execution
- Execution logs are provided proving contract execution with onchain history records
Note: that in this stage the contract execution logic is simply always True.
Evidence of Completion
- Document adequately describes contract interface.
- Execution logs show onchain history of execution.
Delivery Month
1
Cost
20000
Progress
20 %
Milestone Title
Smart Contract Core Logic
Milestone Outputs
- Smart contract actions are gated with tight logic defending each contract action
- Documentation on contract logic flow
- Passing Aiken test and on-chain test reports
- A mostly complete smart contract
Acceptance Criteria
- The grant reviewer can run "aiken check" to see all tests pass
- The grant reviewer can run "./TestAll" to run through on-chain tests
- Documentation reflects the logic implemented
Evidence of Completion
- A generated Test Report showing onchain and offchain execution
- A document showing the logic impemented
Delivery Month
3
Cost
30000
Progress
60 %
Milestone Title
Front-End Development and Hosting
Milestone Outputs
- A user-interface for packaging loans into bonds
- A user-interface for searching for and purchasing bonds
- A user-interface for monitoring and collecting yield
- A user-interface that helps trace the loans that make up the bond
Acceptance Criteria
- A user shall be able to take collateral tokens from the mortgage smart contract and package a bond on the testnet
- A secondary user shall be abe to purchase shares
- The secondary user shall be able to collect revenue from the bond
Evidence of Completion
- A hosted front end enabling a user to interact with the smart contract
- Onchain history proving interaction
Delivery Month
3
Cost
30000
Progress
80 %
Milestone Title
Passing Audit
Milestone Outputs
- Documentation on using the smart contract from the smart contract developer.
- A comprehenrive report of vulnerabilities and rectifications from an Auditing firm.
- A mature smart contract with passing test case
Acceptance Criteria
- The smart contract is deemed to be vulnerability free
- Final audit report is satisfactory
- Smart contract is in a working state
- Test reports are publicly posted
- Smart contract can wrap around the mortgage smart contract
Evidence of Completion
- Audit Report is produced and all concerns within it are adequately addressed.
- Contract is hosted and interactable in a working state
Delivery Month
2
Cost
20000
Progress
100 %
[Final Pitch] Budget & Costs
Please provide a cost breakdown of the proposed work and resources
Labor
- 20k: Milestone #1: Smart Contract Action Interface
- 30k: Milestone #2: Smart Contract Core Logic
- 30k: Milestone #3: Front-End Development and Hosting
Audit
- 20k: Milestone #4: Complete Report
[Final Pitch] Value for Money
How does the cost of the project represent value for the Cardano ecosystem?
- Allows for traditional fixed income markets to operate on Cardano
- Enables smart contract mortgages with a liquidity layer
- Inreases TVL
- Helps bridge the world of traditional finance with blockchain defi
- Makes an institutional investment vehicle available to retail investers
- Makes the health and credit rating of CDO bonds more transparent due to onchain tracability
- Reduces time to construct CDO bonds
[Required Acknowledgements] Consent & Confirmation
Terms and Conditions:
Yes