Last updated 3 months ago
There is currently no open source lending solution for multicollateral AMM lending pools and dynamic interest rates.
Flow V2 is an open-source lending protocol that introduces multicollateral AMM lending pools and dynamic interest rates to Cardano.
This is the total amount allocated to Flow V2 - Open Source Multi Collateral AMM Lending Pools.
Please provide your proposal title
Flow V2 - Open Source Multi Collateral AMM Lending Pools
Enter the amount of funding you are requesting in ADA
408000
Please specify how many months you expect your project to last
8
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
There is currently no open source lending solution for multicollateral AMM lending pools and dynamic interest rates.
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
MIT License
Please choose the most relevant theme and tag related to the outcomes of your proposal
DeFi
Describe your established collaborations.
We have no established collaborations relevant to the completion of Flow V2. Our team consists entirely of in-house developers who will be building this protocol. We will ensure that the code is audited, but those costs will be covered out of pocket. We are still finalizing audit partners for Flow V2; however, Flow V1 is currently being audited by Anastasia Labs and has already been audited by Christian Schwartz, the founder of the Helios smart contract programming language on Cardano.
Describe funding commitments.
We have no current funding commitments. Funding will go to our developers to build Flow V2, if this proposal were to be approved. We currently have no financial debt or future financial obligations currently set in stone relevant to Flow V2.
Describe your key performance metrics.
#1 - Total Value Locked.
Currently at 10M ADA, we would consider this protocol a success if it adds at least an additional 50M ADA.
#2 - Volume
We should at least be bringing is an additional $5 million in volume every month, within 3 months of the launch of Flow V2.
#3 - Active Users
We currently have 350 active users. A key KPI for Flow V2 would be having 1,000 daily active users within 3 months of launching on mainnet.
Please describe your proposed solution and how it addresses the problem
Our proposed solution is Flow V2, an open source lending protocol that introduces multicollateral lending pools and dynamic interest rate models to Cardano.
It provides a transparent, community owned foundation that can grow and adapt with the needs of users. For the Cardano community this means access to the same type of advanced lending tools that have driven adoption on other chains, while still benefiting from Cardano’s security, low fees, and reliability.
Flow V2 also has the potential to attract new users and liquidity from outside of Cardano who are looking for efficient and trustworthy lending options. By filling this gap and raising the standard of what is possible on Cardano, Flow V2 helps take the ecosystem to the next level and makes it a more complete and competitive home for decentralized finance.
Please define the positive impact your project will have on the wider Cardano community
Flow V2 can have a significant impact on the Cardano community because it delivers something the ecosystem doesn’t yet have: an open-source lending protocol that supports multiple types of collateral and uses dynamic interest rates. Lending and borrowing are basic building blocks of any financial system, and by making this possible natively on Cardano, Flow V2 helps unlock a wider range of use cases for ADA and other native tokens.
The protocol is designed to make capital work harder. With dynamic interest rates, liquidity adjusts automatically to match supply and demand, which means lenders get fair returns and borrowers can access credit at sustainable rates. This makes Cardano’s DeFi more efficient, ensuring that value isn’t just sitting idle but is actively circulating through the network.
The benefits go beyond just the protocol itself. A strong lending platform helps attract new users and liquidity to Cardano, including larger players who see lending as a core financial service. As activity grows, other parts of the ecosystem—DEXs, stablecoins, staking pools—also benefit, creating a healthier and more connected DeFi environment.
Because Flow V2 is open source, it can also serve as a foundation for future projects. Developers will be free to build on top of it, fork it, or adapt it for new ideas, which means the value of the protocol extends far beyond its initial launch. In this way, Flow V2 acts not just as a product but as shared infrastructure that strengthens the entire community.
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 delivered and open sourced isolated pooled lending from scratch at a confident pace.
We are currently one of the fastest growing defi protocols on Cardano with over 10 million ADA in TVL since launching 1 month ago.
We currently have the 8th highest TVL on Cardano.
We've displayed our ability to write aiken code and build a high-quality product that Cardano DeFi users want to use daily.
We will validate Flow V2 feasibility by putting together a detailed design architecture that will be public for community consumption.
Milestone Title
Protocol & Architecture Design
Milestone Outputs
Deliverables: Finalized specifications for multicollateral lending pools, dynamic interest rate models, and liquidation framework.
Outputs: Protocol documentation, UTxO flow diagrams, risk parameters, and rate models.
Acceptance Criteria
A finalized design document is published, reviewed by the team, and confirmed as technically feasible. All lending, borrowing, and liquidation flows must be defined end-to-end with no gaps before implementation begins.
Evidence of Completion
All design documentation and draft contract interfaces published in Flow’s public GitHub repository.
Delivery Month
1
Cost
28500
Progress
10 %
Milestone Title
Smart Contract Development
Milestone Outputs
Core Aiken contracts implementing lending, borrowing, collateral management, liquidations, and fee distribution. The codebase will include detailed inline documentation, reference scripts for transaction building, and clear interfaces for off-chain components to connect seamlessly with the contracts.
Acceptance Criteria
Contracts compile successfully, pass all unit tests, and demonstrate stable execution of core functions including supply, borrow, repay, withdraw, and liquidation. Peer reviews must confirm the code is secure, efficient, and functional.
Evidence of Completion
Evidence of completion will be if the smart contracts are available in the flow github which is publicly available.
Delivery Month
2
Cost
122500
Progress
30 %
Milestone Title
Off-Chain Code Development
Milestone Outputs
Off-chain code responsible for coordinating transactions between users and smart contracts, including the matcher/relayer logic for orders, collateral checks, and liquidation triggers. A functional frontend dApp will be delivered, enabling users to interact with Flow V2 directly to supply assets, borrow against collateral, repay loans, and withdraw liquidity.
Acceptance Criteria
End-to-end interaction between off-chain code, frontend, and smart contracts works reliably. A user must be able to deposit collateral, borrow assets, repay debt, and withdraw liquidity in a controlled environment. Internal stress tests confirm liquidation logic behaves as designed.
Evidence of Completion
Off-chain services and dApp frontend code published and maintained in Flow’s public GitHub repository.
Delivery Month
2
Cost
122500
Progress
30 %
Milestone Title
Public Testnet
Milestone Outputs
Deployment of Flow V2 to the Cardano testnet, with at least one live lending pool (e.g., ADA and a stablecoin). All core functions will be enabled, allowing real users to deposit, borrow, repay, and liquidate positions in a public environment.
Acceptance Criteria
Testnet users can successfully interact with all major protocol functions. Liquidation events must trigger automatically under expected conditions. Community feedback will be collected and logged for improvements before mainnet deployment.
Evidence of Completion
Public testnet deployment, contracts, and supporting code made available in Flow’s GitHub repository.
Delivery Month
2
Cost
81500
Progress
20 %
Milestone Title
Mainnet Launch
Milestone Outputs
Deliverables: Final audit, production deployment. We will deploy Flow V2 to Cardano mainnet. Prior to launch to mainnet we will conduct an audit that we will pay for out of pocket. Flow V2 will launch with multi-collateral and dynamic interest rates.
Acceptance Criteria
Acceptance Criteria:
Flow Lending V2 contracts and dApp deployed on Cardano mainnet.
We will pay for the audit out of pocket. Flow V2 will be launched with multi-collateral and dynamic interest rates.
Evidence of Completion
Evidence of completion will be our tweet saying Flow V2 is now live along with sharing the github and dapp link.
Delivery Month
1
Cost
53000
Progress
10 %
Please provide a cost breakdown of the proposed work and resources
We are requesting ₳408,000 to support the full-time Flow V2 team over an eight-month development period. This funding is fully dedicated to salaries for a lean but highly capable team of six, ensuring that all resources go directly toward building and delivering the protocol. The team is composed of one frontend engineer, one smart contract developer, two backend engineers, one QA engineer, and one project manager. Together, this group represents the full range of skills required to design, develop, test, and launch Flow V2 on Cardano.
1x frontend
2x backend
1x smart contract developer
1x QA engineer
1x project manager
The frontend engineer will focus on building the user-facing dApp, handling wallet integrations, the collateral management interface, and lending dashboards, while ensuring a smooth experience across both desktop and mobile devices.
The smart contract developer will design and implement the Aiken contracts that power multicollateral lending pools, dynamic interest rate models, and liquidation logic, working closely with the backend and QA engineers to guarantee deterministic and secure execution.
The two backend engineers will be responsible for the matcher and relayer systems, along with the off-chain logic that coordinates transactions, manages collateral, and processes liquidations. Their work will ensure that the protocol is scalable, reliable, and able to integrate smoothly with other parts of the Cardano DeFi ecosystem.
Supporting this development effort, the QA engineer will design test harnesses and simulations, run determinism and load tests, and lead security reviews to make sure Flow V2 remains stable before and after launch. Overseeing the entire effort, the project manager will coordinate timelines, keep communication clear across all roles, and ensure milestones are delivered on schedule while preparing regular updates for Catalyst and the broader community.
By structuring the team this way, we are dedicating the entire budget to 48 person-months of specialized, full-time work, averaging about ₳8,500 per person per month. This allocation reflects a direct investment into technical delivery and accountability, giving Flow V2 the focused resources it needs to launch successfully and strengthen Cardano’s DeFi ecosystem.
How does the cost of the project represent value for the Cardano ecosystem?
Flow has quickly become the fastest-growing dApp on Cardano, reaching over 10 million ADA in TVL within just 30 days of launch. The next set of features in Flow V2 are designed to significantly expand this growth, with the potential to help attract the next 100 million ADA in TVL to the ecosystem. This represents a direct increase in liquidity, user adoption, and overall activity on Cardano, creating lasting value for the entire community.
Terms and Conditions:
Yes
Flow is backed by a seasoned global team of over six developers and project managers with a strong track record of delivery on Cardano, having successfully built and launched Flow V1 from the ground up to mainnet in less than 6 months: including audits, public testnet, and open sourcing our smart contracts.