Last updated 8 months ago
Enabling cross-chain trading for ADA against native BTC, ETH and other assets without the use of bridges or wrapping as they have historically had security issues
Our solution will be to enable HTLC-based atomic swaps for ADA to directly swap between many different blockchains without the need of wrapping or bridging.
This is the total amount allocated to Trustless Cross-Chain Atomic Swaps for Cardano .
Please provide your proposal title
Trustless Cross-Chain Atomic Swaps for Cardano
Enter the amount of funding you are requesting in ADA
75000
Please specify how many months you expect your project to last
12
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Enabling cross-chain trading for ADA against native BTC, ETH and other assets without the use of bridges or wrapping as they have historically had security issues
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
GPLv3
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).
Our project is innovative by delivering trustless cross-chain exchange without bridges/wrapped assets and shipping it as reusable infrastructure, not a one-off app. We provide protocol-level atomic swap primitives, a chain-agnostic SDK, and reference integrations. Security is rigorous (threat model, fuzz/property tests, signed builds, independent review). Production UX standardizes safe interoperability and compounds liquidity.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
A public testnet ( and mainnet ) build that executes a full atomic swap—quote → lock → reveal/refund—between ADA and another chain, with no custodians. It shows success and safe refund paths, publishes testnet tx IDs, and exposes a CLI + wallet UI flow. Open-source repos (KDF adapter ), tagged releases with binaries, and integration into Komodo wallet. Demo scripts and docs included. Issue tracker open for feedback; readme lists steps to run.
Describe realistic measures of success, ideally with on-chain metrics.
Success = shipped releases (v0.1 to v1.0) swap success >=98% and refund reliability >=99%. On-chain: >=2,000 swap txs (locks + redeems/refunds) in 6–12 months, redeem/refund >=90/10, more active addresses using swap scripts, and steady fee contribution.
Please describe your proposed solution and how it addresses the problem
Adding Cardano support to KDF and enabling atomic swaps delivers bridge-free, self-custodial interoperability that channels external liquidity directly into ADA markets. Builders get a production-ready SDK, reference contracts, and wallet flows, so wallets, DEXs, treasuries, and payment apps can route value to and from Cardano without wrapped assets or custodians. This reduces systemic risk, attracts capital and developers, and turns Cardano into an endpoint for multi-chain activity.
On-chain impact: every completed swap requires at least two Cardano transactions (lock and redeem), with automatic refunds when timeouts occur. As swaps can power DCA tools, arbitrage, cross-chain routing, OTC settlement, and treasury rebalancing, recurring flow compounds into sustained transaction volume, more active addresses, and UTXO churn. Integrations by third-party wallets and DEXs multiply this effect as they embed the swap primitives, converting cross-chain demand into daily Cardano ledger activity.
Please define the positive impact your project will have on the wider Cardano community
Adding Cardano support to the Komodo DeFi Framework (KDF) and enabling cross-chain atomic swaps delivers non-custodial, bridge-free liquidity for ADA. Users gain direct, wallet-to-wallet asset exchange with cryptographic guarantees (either both sides complete or neither does).
What users get
True self-custody. Swap ADA with assets on other chains without wrapped tokens, centralized bridges, or custodians. Keys never leave the wallet.
Broader markets, better prices. Access deeper liquidity across multiple networks, improving price discovery and reducing slippage for ADA pairs.
Seamless UX in Komodo Wallet. Guided flows (quote → lock → reveal/refund), automatic time-lock safety, and clear status/resolution paths make atomic swaps accessible to non-experts.
Resilience. Swaps don’t depend on a single operator or multisig. If conditions aren’t met, funds auto-refund according to protocol rules.
What builders get
Reusable infrastructure. A Cardano adapter in KDF, reference implementations, and a chain-agnostic SDK shorten integration time from months to days.
Composability. Wallets, DEXs, payment apps, and treasury tools can embed swaps for on-the-fly rebalancing, cross-chain routing, and OTC flows—without reinventing protocols.
Ecosystem effects
Risk reduction for ADA holders. By avoiding wrapped assets and custodial bridges—the most frequent failure point in interoperability—capital allocators can move between chains with lower systemic risk.
Capital efficiency. DAOs, treasuries, and market-makers rebalance ADA against BTC, ETH/EVM assets, and others without custodial lockups, improving liquidity where it’s actually needed.
Attracting external users. Frictionless ADA↔other-chain swaps invite non-Cardano users to interact with ADA directly, expanding the addressable user base
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?
Capabilities to deliver with trust & accountability
Open by default: All code and docs in public repos with tagged releases and short changelogs.
Milestone-based: We ship in clear steps (spec → prototype → wallet integration → testnet → review → pilot). Funds tie to accepted milestones with a demo or tx IDs.
Security-first: Testnet before mainnet before any broad launch.
Transparent updates: Brief monthly reports (what shipped, what’s next, risks).
How we will validate feasibility:
Check the basics: Confirm both chains support the needed pieces (hashing, time-locks, scripts/signatures, fee rules).
Build a minimal swap on testnet: One end-to-end swap path that either completes or auto-refunds—no custodians, no wrapping.
Stress it: Delay messages, spike fees, simulate reorgs; tune time-locks/fees until it’s stable.
Wallet alpha: Add a simple UI flow with safe defaults and automatic refunds; fix issues found by early users.
Small mainnet pilot: If success and refunds meet targets, expand; if not, we publish blockers and next steps.
Milestone Title
Spec & Prototype
Milestone Outputs
Publish a public swap specification and threat model; produce a feasibility matrix for ADA↔other-chain pairs (hashing, time-locks, fee rules, script limits, signature schemes); build the KDF Cardano adapter, sample scripts ; demonstrate at least one end-to-end testnet atomic swap that either completes or auto-refunds; tag a release with parameters, public tx IDs, and success criteria.
Acceptance Criteria
Spec & threat model published; feasibility matrix (hashes, timelocks, fees, script/size limits) complete; KDF adapter builds in CI; CLI demo executes one end-to-end testnet atomic swap with public tx IDs and documented refund path; tag release v0.1.
Evidence of Completion
Public repo tag v0.1 with swap spec, threat model, and feasibility matrix; CI shows passing build for KDF adapter; CLI demo script and logs link to testnet tx IDs proving an atomic swap and a successful refund; release notes include parameters.
Delivery Month
3
Cost
22000
Progress
40 %
Milestone Title
Wallet Integration
Milestone Outputs
Feature-flagged wallet swap UI integrated with KDF; CLI + UI demos of testnet swaps; SDK examples and developer docs (API, refunds, errors); unit tests and localized strings; release tag v0.2 with binaries/changelog; public testnet tx IDs.
Acceptance Criteria
Wallet build exposes a feature-flagged swap flow (quote→lock→reveal/refund) with state recovery; two testnet pairs achieve ≥98% completion and ≥99% refund success over 7 days; SDK examples and developer docs published; error cases documented; PR reviews resolved. Unit tests added; strings localized.
Evidence of Completion
Release tag v0.2 published with binaries and changelog; merged PRs for wallet swap UI and KDF adapter; testnet swap and refund demonstrated with public tx IDs; unit tests passing in CI; demo video/screenshot links included in release notes.
Delivery Month
6
Cost
20000
Progress
70 %
Milestone Title
Security Review and Mainnet Pilot
Milestone Outputs
Security review report published; remediation PRs merged; test coverage expanded; deterministic signed builds; capped mainnet pilot enabled with feature flag; release tag v1.0 and docs; public mainnet tx IDs; go/no-go and rollback plan documented.
Acceptance Criteria
Security review delivered; all critical/high issues fixed; fuzz tests added; deterministic signed builds produced; feature-flagged mainnet pilot launched with amount/rate caps; public mainnet tx IDs and rollback/go-no-go criteria published.
Evidence of Completion
Security report link in repo; remediation PRs merged with hashes. CI shows expanded property/fuzz tests. v1.0 release signed. Feature-flagged mainnet pilot live; sample mainnet tx IDs included. Go/no-go + rollback docs published.
Delivery Month
9
Cost
20000
Progress
90 %
Milestone Title
Final Milestone: Project Closeout and Video
Milestone Outputs
Final close-out package: 5–7 min video walkthrough (goals, demoed swaps, lessons); final report (deliverables, KPIs, spend, risks); tagged release link; docs index; audit summary/remediations; handover notes; next-steps/issues list; archive of public updates.
Acceptance Criteria
Video clearly shows end-to-end swap and refund; report confirms all milestones met, KPIs achieved/shortfalls explained, and budget reconciled; latest tagged release and docs live and reachable; audit issues resolved or tracked; maintainers for handoff named.
Evidence of Completion
Public links: video URL, final report PDF, tagged release, docs site, and audit summary. Include sample mainnet/testnet tx IDs, changelog and spend table. Close-out ticket opened and approved by reviewers; signed release checksums posted with date.
Delivery Month
12
Cost
13000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Milestone 1 — Spec & Prototype
Core engineering (KDF adapter): 13,500 ADA
Spec, threat model, feasibility matrix: 3,500 ADA
CI/CD + test harness + scripts: 3,000 ADA
Initial docs (parameters, CLI usage): 2,000 ADA
PM & monthly reporting: 500 ADA
Contingency (fees, fixes): 500 ADA
Total: 22,000 ADA
Milestone 2 — Wallet Integration & Testnet Swaps
Wallet backend + UI flow integration: 11,000 ADA
SDK packaging & examples: 3,500 ADA
QA & automation (unit/property tests): 4,000 ADA
Testnet infra (nodes, tx fees, tooling): 3,000 ADA
Developer docs & integration guides: 1,500 ADA
Community beta support & triage: 1,000 ADA
PM & reporting: 1,000 ADA
Total: 20,000 ADA
Milestone 3 — Security Review & Mainnet Pilot
Security review/audit: 10,000 ADA
Remediation engineering: 6,000 ADA
Property/fuzz/adversarial tests: 3,000 ADA
Release eng (deterministic builds, signing, SBOM): 2,000 ADA
Mainnet pilot ops (caps, monitoring, on-call): 2,000 ADA
Final docs, go/no-go report & PM: 1,000 ADA
Contingency: 1,000 ADA
Total: 20,000 ADA
Milestone 4: Project closeout and video
Close-out video production (script, capture, editing, captions, thumbnails) — 3,200 ADA
Final report & KPI analysis (spend reconciliation, metrics write-up, lessons) — 1,800 ADA
Documentation polish (guides, examples, README index, changelog) — 2,200 ADA
Release engineering (deterministic builds, signing packaging) — 1,600 ADA
Audit summary & remediation wrap-up (write-ups, proofs, retests) — 1,300 ADA
Handover & knowledge transfer (maintainer notes, Q&A) — 1,200 ADA
PM & compliance reporting (close-out checklist, approvals, archiving) — 900 ADA
Hosting & archiving (docs site updates, video storage, mirrors) — 400 ADA
Contingency (captioning/localization tweaks, re-cuts) — 400 ADA
Total: 13,000 ADA
Project Total: 75000 ADA
How does the cost of the project represent value for the Cardano ecosystem?
For this budget, the ecosystem gains a high-leverage public good rather than a single app. We deliver a Cardano adapter inside KDF , a wallet integration that proves real swaps end-to-end, and primitives (SDK, tests, docs) any wallet, DEX, treasury, or payment app can reuse. That eliminates duplicative R&D across teams and lowers time-to-market from months to days. Because atomic swaps are zero-custody (no bridges, no wrapped assets), the security surface is smaller and ongoing operating risk is lower—value that compounds over time.
Economic impact is direct: each swap drives on-chain transactions (lock and redeem, plus refunds when needed), increasing activity, fees, and address churn without sacrificing self-custody. By making non-custodial cross-chain routes easy to integrate, we attract external liquidity into ADA pairs and unlock new products (cross-chain DCA, OTC settlement, treasury rebalancing). Milestone-gated funding, open repos, deterministic builds, and an independent review ensure accountability and reduce maintenance for future integrators—turning a modest grant into durable, ecosystem-wide interoperability infrastructure.
Terms and Conditions:
Yes
Daniel Stadelmann - Komodo Platform CTO
Guru Charan Gupta - Komodo Platform QA
Other software developers from the Komodo Platform ecosystem will be brought in ad hoc to complete the proposal.
All developers participating have extensive experience with cross-chain atomic swaps.