[Proposal setup] Proposal title
Please provide your proposal title
LayerZero Support on Cardano Testnets
[Proposal Summary] Budget Information
Enter the amount of funding you are requesting in ADA
400000
[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?
Cardano lacks a tier-1 omnichain messaging layer (LayerZero), limiting cross‑chain app deployment & stablecoin/RWA liquidity (eg via Stargate). Low liquidity + limited cross-chain = Isolated Ecosystem
[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
MIT License
[Theme Selection] Theme
Please choose the most relevant theme and tag related to the outcomes of your proposal
Cross-chain
[Campaign Category] Category Questions
Describe your established collaborations.
Over 4000 environments are created leveraging our open-source stack every day
- Most active:Ethereum Foundation, OP Labs, and Polygon Labs
- Libre Capital, Zoniqx, Nomyx, Tokeny, Alluvial Finance, Blockdaemon
Significant partnerships:
Describe funding commitments.
Funding will be used almost exclusively to offset our developer resources. We will have a team of 5 developers supervised directly by the founders
- Team size: 5 developers (full-time) + Founders (Til)
- Monthly allocation per resource: 10,000 ADA + 5,000 each for founders
- Duration: 6 months
- Budget: (5 x 10000 x 6) + (2 x 5000) = 400,000 ADA
Describe your key performance metrics.
- Fully functioning, tested and reviewed LayerZero v2 implementation on Cardano testnet
- =99% uptime across a 30 day window
- Final documentation and videos published for developers to deploy cross-chain dApps (OApps) and bring cross-chain liquidity (via stablecoins, RWAs and other OFT tokens) to Cardano
- At least on independent project successfully deploys and tests an OApp / OFT on our integration
[Your Project and Solution] Solution
Please describe your proposed solution and how it addresses the problem
Launch a LayerZero v2 integration for Cardano testnet that developers can use immediately to bridge cross-chain liquidity, build multi-chain applications or OApps and deploy OFTs/ONFTs tokens on Cardano. Foundation teams can evaluate this for mainnet promotion.
Concretely, we will deliver:
- Cardano Endpoint & Message Library (Plutus): The on‑chain core that sends/receives LayerZero messages, adapted to EUTXO execution, with clear fee/quote semantics and replay protection.
- DVN Integration (Cardano adapter): A pluggable verification client that consumes DVN attestations and validates message finality on Cardano; designed to work with predicate‑style DVNs used in v2.
- Cardano Executor: An execution component that bundles calldata for target contracts, estimates fees, handles queueing/retries, and submits deliveries with reference inputs/inline datums/reference scripts for efficiency.
- Kurtosis‑based dev environments: Fully automated, reproducible devnets that spin up Cardano + an EVM testnet, provision endpoints, DVNs/Executors, explorers, and example OApps/OFTs.
- Live testnet route: A working Sepolia - Cardano (Pre‑prod) path that application teams can try end‑to‑end (ping‑pong, and OFT sample).
- Documentation & examples: Tutorials for OApp/OFT patterns on Cardano, including fee quoting and safe receive handlers.
Architecture and Technical Approach
On‑chain (Cardano):
- Endpoint & MessageLib (Plutus)
- Send path: Encode packet + options (gas/compute limits, executor hints), lock fee UTXOs, emit event for DVN observation
- Receive path: Verify DVN attestations, enforce nonce/order, dispatch to target contract with bounded execution & clear failure semantics
- EUTXO‑aware design: Use reference inputs/inline datums/reference scripts to minimise size & cost; deterministic state updates and idempotent receipts
- Security: Configurable DVN set per peer chain; easy rotation; replay/ACK channels and blocking/unblocking per app.
Off‑chain:
- DVN adapter: Consumes DVN attestations (predicate signatures, quorum rules) and exposes a verification result consumable by the Cardano Endpoint.
- Ships with mocks for local devnets and reference integration with at least two DVN providers for testnet use.
- Executor (Cardano): Listens for deliverable messages, computes fees, constructs transactions (including collateral and redeemers), and submits with automatic retries.
- Integrates with an Oracle/price‑quote microservice for predictable user fees.
- Observability: Logs, metrics, and tracing (Prometheus/Grafana) across DVN/Executor/Endpoint; failure dashboards and runbooks
Development environments (Kurtosis)
We will ship Kurtosis packages for one‑command spin‑up of Cardano + EVM testnets with LayerZero v2 components (Endpoint, MessageLib, DVN, Executor) and sample OApps.
This mirrors our existing, public packages (LayerZero, Chainlink CCIP, Cosmos, Arbitrum, Babylon) and enables reproducible CI/CD. Kurtosis is already widely used by Ethereum client/devnet teams (ethPandaOps), OP Labs, and Polygon CDK - so Cardano builders get mature tooling from day one.
Here are some of the most widely used Kurtosis Packages:
How this differs from existing Cardano bridges
Cardano today has bridges such as Wanchain, cBridge (Celer), and MicroChains that move assets, often with lock‑and‑mint and various validator/trust models.
LayerZero v2 is a generalised messaging layer with configurable security (DVNs) and a rich app/asset standard ecosystem (OFT/ONFT), plus deep integrations (e.g., Stargate routes). This unlocks application‑level cross‑chain use cases (governance, intent settlement, oracle callbacks, OFTs, Defi) beyond token transfers. Moreover, LayerZero is leading the charge in RWA tokenisation, with a majority of tokenised assets (including PayPal’s PYUSD) using their OFT standard for native cross-chain liquidity. Having a LayerZero implementation on Cardano will enable native deployments of stablecoins and real-world assets, bringing liquidity to Cardano. This will bootstrap Cardano’s interoperable ecosystem growth and make it easy for applications already using LayerZero to add Cardano as a chain.
Open‑source, docs, and hand‑off
All code and Kurtosis packages will be open‑sourced (MIT). We’ll publish:
- “Deploy your natively cross-chain OFT token on Cardano” tutorial;
- “Port your EVM OApp to Cardano (defi, perps dex, lending protocol,s etc.)” guide;
- “Run LayerZero v2 locally” quickstart
[Your Project and Solution] Impact
Please define the positive impact your project will have on the wider Cardano community
Deploy natively cross-chain tokens and unlock liquidity assets
- OFTs on Cardano: Projects can launch omnichain tokens with a single global supply and unify liquidity across Cardano and EVM ecosystems, accelerating DEX, payments, and gaming use cases.
- RWAs and Stablecoins on Cardano: LayerZero is leading the charge in RWA tokenisation, with a majority of tokenised assets (including PayPal’s PYUSD) using their OFT standard for native cross-chain liquidity. Having a LayerZero implementation on Cardano will allow liquidity to flood into the ecosystem
- Composability with Stargate and other LZ‑ecosystem apps: Cardano dApps tap into a broad, established cross‑chain user base and tooling (routing, APIs, analytics).
Build cross-chain defi applications and trading solutions on Cardano
- A full LayerZero implementation on Cardano testnet will allow developers to build their dApps, DEXes and protocols on Cardano and fully test them on Cardano testnet. This will bootstrap the developer ecosystem and provide a strong incentive for LayerZero to deploy its native DVN on Cardano
- One‑command testnets: Kurtosis packages let Cardano teams spin up a full stack: nodes, explorers, DVNs/Executors, and examples in minutes, enabling CI/CD and realistic simulations.Clear docs for porting EVM OApps to Cardano with minimal rewrites (adapter libraries and reference handlers).
- Ecosystem signalling: Parity with top chains: Many leading ecosystems integrate LayerZero v2, bringing it to Cardano, signalling readiness for omnichain apps and partners. Better interop reduces isolation, brings users/liquidity, and increases the surface for wallets, oracles, data providers, and infra operators.
Why big‑name protocols matter here
Bridges like Wanchain, cBridge, and MicroChains serve real needs, but LayerZero v2 delivers generalised messaging + app standards + configurable security that the largest cross‑chain developer ecosystems rally around. LayerZero is already the standard adopted by the largest stablecoins, DEXes, RWA assets and DeFi protocols. Deploying it on Cardano is the only sure-shot way to bring tier-1 projects to the Cardano ecosystem.
[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?
Who we are (Bloctopus)
- We maintain and build Kurtosis packages used across ecosystems (LayerZero, Chainlink CCIP, Cosmos/Coreum, Arbitrum, Babylon). Public repos include: layerzero‑package, cardano‑package, ccip‑package, arbitrum‑package, babylon‑package: https://github.com/LZeroAnalytics
- Our LayerKit project won two LayerZero prizes at ETHGlobal San Francisco 2024 - https://ethglobal.com/showcase/layerkit-ksqw0
- Our CCTUP project won first‑prize tracks from Chainlink, The Graph, and Hedera at ETHGlobal Cannes - https://ethglobal.com/showcase/cctup-cp7sa
- We actively contribute to the Kurtosis ecosystem and operate production‑grade cloud infra for long‑lived, reproducible devnets
Feasibility Approach
- Start from our existing Cardano Kurtosis package (local networks already spin up; early smart contracts exist) and LayerZero v2 patterns we’ve implemented on EVM. Cardano: https://github.com/LZeroAnalytics/cardano-package LayerZero: https://github.com/LZeroAnalytics/layerzero-package
- Validate systematically: unit/property tests devnet fault‑injection
- Preview public tests; Pre‑prod go‑live with Sepolia
- Publish weekly updates, pass/fail dashboards, and reproducible enclaves so Catalyst voters and the community can verify progress in real time.
[Milestones] Project Milestones
Milestone Title
Cardano Endpoint & Message Library (LZ v2 Core)
Milestone Outputs
- Fully implemented Plutus Endpoint & MessageLib contracts supporting send/receive of LayerZero packets
- Fee quoting and message options (gas limits, executor hints) adapted to the EUTXO model
- Local devnet deployment via Kurtosis package, including demo of successful deployment
Acceptance Criteria
- Contracts compile, deploy, and pass unit + property tests
- All contract functions can be successfully called (send/receive/configs)
- Documentation published covering implementation details for the contracts
Evidence of Completion
- Public GitHub repo with code, tests, and CI pipelines passing
- Kurtosis enclave scripts and successful deployment of contracts
- Demo video walkthrough
Delivery Month
2
Cost
75000
Progress
30 %
Milestone Title
DVN Adaptor
Milestone Outputs
- Implementation of the DVN contract in Plutus
- Implementation of an off-chain DVN component that verifies attestations
- Kurtosis package updated with DVN components and sample configurations
- Documentation on implementation details
Acceptance Criteria
- Messages are picked up by the off-chain component correctly
- Only the DVN component can attest to the messages on the destination chain
- Documentation includes the DVN configuration guide and example integration
Evidence of Completion
- Public GitHub repo with DVN code and test scripts
- Kurtosis scripts that can be reproduced by the community to show successful deployment
- Recorded walkthrough of implementation
Delivery Month
3
Cost
85000
Progress
50 %
Milestone Title
Executor Implementation
Milestone Outputs
- Implementation of executor contract in Plutus
- Implementation of off-chain executor service that listens for messages, computes delivery fees, and submits transactions on the destination chain
- Integration with price oracle adapter
Acceptance Criteria
- Executor can successfully deliver messages on devnets once they have been attested by sufficient DVNs
- Delivery costs predictions are accurate within 5%
- Documentation includes the executor deployment guide and runbooks
Evidence of Completion
- GitHub repo with executor code, and test results
- Recorded demo of executor delivering OApp messages across devnets
Delivery Month
4
Cost
85000
Progress
80 %
Milestone Title
Sepolia <-> Cardano PreProd Deployment
Milestone Outputs
- Deployment of all the LayerZero v2 components on Cardano and Ethereum testnets
- Fully working OFT and OApp demo (token and message transfers)
- Documentation for dApps integrating with LayerZero on Cardano
Acceptance Criteria
- 24 hours up-time of DVN and Executor and successful delivery of 99% of messages
- Docs cover integration steps, fee quoting and best practices
- Community devs can test and confirm transfers indepdendently
Evidence of Completion
- Explorer links to successful transactions
- Kurtosis package updated with testnet configs
- Demo video of OFT transfer on testnets
Delivery Month
5
Cost
85000
Progress
90 %
Milestone Title
Complete implementation with monitoring and dev tooling
Milestone Outputs
- Dashboard to monitor transfers and infrastructure
- 30 day continuous uptime of the testnet route between Sepolia and Cardano testnet
- Final documentation updates including "known issues and next steps for mainnet
Acceptance Criteria
- Public dashboards show >=99% uptime across a 30-day window
- At least one independent project successfully deploys and tests an OApp / OFT on our integration
- Final docs and demo videos are published
Evidence of Completion
- Uptime/monitoring logs and dashboard screenshots for the 30-day period
- Published explorer that shows transfers of community OApps
- Published documentation
Delivery Month
6
Cost
70000
Progress
100 %
[Final Pitch] Budget & Costs
Please provide a cost breakdown of the proposed work and resources
Budget: 400,000 ADA
Funding will be used almost exclusively to offset our developer resources. We will have a team of 5 developers supervised directly by the founders
- Team size: 5 developers (full-time) + Founders (Til & Anisha)
- Monthly allocation per resource: 10,000 ADA + 5,000 each for founders
- Duration: 6 months
- Budget: (5 x 10000 x 6) + (2 x 5000) = 400,000 ADA
[Final Pitch] Value for Money
How does the cost of the project represent value for the Cardano ecosystem?
- Unlock Liquidity & Cross-Chain Assets
- Omnichain tokens: Projects can launch tokens with a single global supply across Cardano and EVM ecosystems, unifying liquidity for DEX, payments, and gaming.
- RWAs & stablecoins: LayerZero powers tokenized assets like PayPal’s PYUSD. With Cardano support, these assets and their liquidity can flow directly into the ecosystem.
- Plug into LayerZero apps: Cardano dApps gain immediate access to a wide cross-chain user base, routing protocols, and liquidity through Stargate and other LayerZero apps.
- Supercharge Developers & DeFi
- Cross-chain DeFi: A full LayerZero stack on Cardano testnet lets developers build and test DEXes, protocols, and trading solutions natively, accelerating ecosystem adoption.
- Developer experience: One-command devnets spin up nodes, explorers, DVNs, executors, and examples in minutes, with clear guides to port EVM apps to Cardano.
- Ecosystem signal: Matching top chains like Ethereum and Polygon shows Cardano is ready for omnichain apps, partners, and liquidity.
3**. Attract Tier-1 Protocols**
- Beyond bridges: Current solutions focus on asset transfer. LayerZero v2 is the industry standard for cross-chain messaging, security, and composable apps.
- Adopted by leaders: The biggest stablecoins, DEXes, and RWA protocols already use LayerZero. Bringing it to Cardano is the surest way to attract tier-1 projects.
- High-Leverage, Transparent Delivery
- Immediate utility: Developers get working examples and infrastructure on Cardano testnet now, not years down the road.
- One integration, many use cases: From tokens to governance and oracle callbacks, a single LayerZero deployment unlocks it all.
- Lower ops cost: Reproducible Kurtosis environments cut debugging time and build confidence.
- Full transparency: Public repos, CI pipelines, dashboards, and audits ensure accountability and trust.
In short: LayerZero v2 on Cardano is the gateway for stablecoins, RWAs, DeFi protocols, and liquidity to enter the ecosystem. It puts Cardano on par with leading chains and gives developers the tools they need to build the next generation of omnichain apps.
[Required Acknowledgements] Consent & Confirmation
Terms and Conditions:
Yes