MLabs - Feesaswap: Decentralized Fee Trading on Cardano

[Proposal setup] Proposal title

Please provide your proposal title

MLabs - Feesaswap: Decentralized Fee Trading on Cardano

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

415529

[Proposal Summary] Time

Please specify how many months you expect your project to last

12

[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?

Most Cardano dApps require minADA fees, forcing token swaps and discouraging transaction usage. Liquidity providers also lack production-ready infrastructure for decentralized fee swaps at scale.

[Proposal Summary] Supporting Documentation

Supporting links

• https://mlabs-haskell.github.io/pisa-fees/pisa-api/web-socket-api.html
,
• https://mlabs-haskell.github.io/pisa-fees/
,
• https://mlabs-haskell.github.io/pisa-fees/pisa-api/integration-guide.html

[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?

No

License and Additional Information

NA

[Theme Selection] Theme

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

DEX

[Campaign Category] Category Questions

Describe your established collaborations.

MLabs has forged impactful collaborations across the blockchain space and has assisted multiple ecosystem projects such as SundaeSwap, Minswap, Optim, Liqwid Finance, and IO through development and tooling contributions as part of broader Cardano community work. MLabs is well possitioned to take FeesaSwap's unique proposal to the next stage of development to scale out the remainder of work.

MLabs is already working with several DApps and Wallets who will be integrating with FeesaSwap.

Describe funding commitments.

We have invested significant resources into building Feesaswap, both financially and through extensive developer hours. This investment covers early infrastructure, backend orchestration, indexing, and the integration of Pisa Fees into a production-ready platform. Our strong commitment to the project’s success, ensures alignment between our team, the Cardano community, and future ecosystem partners. Additional funding will allow us to complete the final development stages to expand integrations with token providers and swap platforms, and drive adoption through outreach and events.

Describe your key performance metrics.

MLabs has delivered on a Catalyst for FeesaSwap (PisaFees) from the concept round, now bringing Feesaswap live on Cardano mainnet. This includes deployment of the core protocol, integration of Pisa Fees for non-ADA transactions, and a functioning production platform. Our progress can measured by delivering a working product that is live, tested, and usable today, validating both technical feasibility and community value. These achievements demonstrate execution capacity and strong alignment with ecosystem needs. We are seeking to bring FeesaSwap to scale with this round of funding.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Feesaswap (Feesaswap.io formally Pisa-Fees) delivers a complete, production-grade platform for decentralized fee trading on Cardano. Its fully integrated, mainnet connected, frontend and developer-focused APIs enable seamless integration into existing protocols, allowing users to pay transaction fees directly in the tokens they hold, eliminating the need for ADA conversions. This proposal seeks to help support and establish strategic partnerships with a wide range of token issuers and swap platforms while finalizing the remaining development components of the project. Significant prior investment and ongoing commitment ensure our team is deeply aligned with the project’s success. Through targeted marketing, event participation, and community outreach, Feesaswap will drive ecosystem-wide adoption, increase transaction volume, and lower barriers for new users across Cardano.

[Your Project and Solution] Impact

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

With FeesaSwap APIs and off-chain framework in place, more Cardano protocols can integrate non-Ada fee features into their services. Number of protocols that support non-Ada transaction fees will be a good measure of Pisa Fees’ impact on the Cardano community. With wider adaptation of Pisa Fees, regular users of Cardano network will enjoy more protocols that require less preparation like buying Ada, for using decentralized protocols. This will open the door new dApps and functionality to the wider ecosystem while increasing the ease of usage of Cardano.

[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?

To ensure fund management, we have created transparent budgeting and milestone-based funding releases. Additionally, our team members have a history of responsible financial management and adhere to best practices in project governance. We are dedicated to upholding the trust of the Cardano community and delivering impactful results.

Multiple layers of testing suites and demonstrations written by our developers who have profound experiences in Cardano decentralized protocols will ensure most if not all aspects of the protocol are tested with different magnitudes of testing, such as unit tests, property tests, end-to-end tests, benchmarking, and more.

Having FeesaSwap externally audited through CertiK, we can ensure that the final product is a secure and safe environment for all users of the contract.

[Milestones] Project Milestones

Milestone Title

Infrastructure & Monitoring Setup

Milestone Outputs

1. Production safety tool deployed
2. Liquidation bot implemented and tested.
3. Token price bulk update system operational.
4. Telemetry instrumentation for demo server, off-chain code, indexer, and bots.
5. Prometheus/Grafana telemetry collection and dashboards set up.

Acceptance Criteria

1. Safety tool and liquidation bot execute successfully in preprod and mainnet environments.
2. Bulk token price update runs without error and updates on schedule.
3. Telemetry captures performance/resource metrics from all key services.
4. Grafana dashboards present live, accurate system data.

Evidence of Completion

1. GitHub commit safety tool, liquidation bot, and telemetry instrumentation code.
2. Deployment logs for preprod and mainnet.
3. Screenshots of live Grafana dashboards with telemetry data.
4. Written summary of monitoring configuration and test results.

Delivery Month

2

Cost

83059

Progress

20 %

Milestone Title

Node & Database Operations

Milestone Outputs

1. Operational Cardano node deployed via Demeter or Cardanow.
2. Database migration scripts and monitoring setup complete.
3. Database schema designed for optimal position selection and management.
4. Verified testnet deployment with integration tests executed.

Acceptance Criteria

1. Node syncs fully and serves queries without interruption.
2. Schema supports required queries for position selection with expected performance.
3. All migration scripts run without error and preserve data integrity.
4. Testnet deployment passes integration tests without critical issues.

Evidence of Completion

1. Screenshots/logs showing synced and operational node.
2. SQL migration scripts in the repository.
3. GitHub commits for schema design and implementation.
4. Integration test reports with pass/fail breakdown.

Delivery Month

4

Cost

97882

Progress

20 %

Milestone Title

Backend Orchestration

Milestone Outputs

1. SQL layer in Haskell to communicate with database and support frontend needs.
2. LRU algorithm for selecting available positions.
3. Lock/unlock position mechanism with failure handling.
4. Unit and integration test coverage for all new backend features.

Acceptance Criteria

1. SQL layer handles create, read, update, delete operations correctly.
2. LRU selection algorithm returns expected results in test scenarios.
3. Locking mechanism prevents race conditions and unlocks on tx build failure.
4. Test suites pass 100% for implemented features.

Evidence of Completion

1. GitHub commits showing SQL layer, LRU, and locking code merged.
2. Test reports showing all related tests passing.
3. Documentation of API functions for frontend integration.

Delivery Month

1

Cost

99058

Progress

20 %

Milestone Title

Indexer & Oracle Updates

Milestone Outputs

1. Indexer processes position changes from raw block data (add, update, rollback, unlock, remove).
2. Oracle service updates token prices continuously.
3. Configurable alert/notification system for liquidity events.

Acceptance Criteria

1. Indexer correctly processes all position change scenarios during test runs.
2. Oracle updates prices within the target refresh interval.
3. Alerts trigger correctly when configured liquidity thresholds are met.

Evidence of Completion

1. Logs of indexer operations demonstrating correct processing.
2. Oracle update logs showing recent token price changes.
3. Screenshots or video of alert notifications in action.

Delivery Month

6

Cost

30824

Progress

10 %

Milestone Title

Frontend Improvements

Milestone Outputs

1. Professionally styled frontend using prepared graphics.
2. Layout and UI finalized and deployed to staging.
3. Functional integration with backend APIs for FeesaSwap.
4. Instructional video how to use site and walkthough demo

Acceptance Criteria

1. UI matches approved designs and renders correctly across supported browsers/devices.
2. All FeesaSwap API calls from frontend return expected data.
3. End-to-end user flow from frontend to backend works without error.

Evidence of Completion

1. Staging environment URL for functional review.
2. Screenshots of final UI/UX.
3. GitHub commits for frontend integration code.
4. Recorded walkthrough of frontend interactions with live data.

Delivery Month

2

Cost

21882

Progress

10 %

Milestone Title

Marketing, Outreach & Event Participation

Milestone Outputs

1. Booth presence at Rare Evo (10x20) with MLabs-branded signage, table cloth, posters, and swag.
2. Attendance at targeted events (Rare Evo, Consensus, Impact Summit, Socious in Japan) by key team members.
3. Execution of biweekly Twitter campaign and community outreach activities.
4. Participation in up to 5 industry events/podcasts for ecosystem exposure.
5. Direct engagement with regional communities, including Japanese Cardano ecosystem promotion.

Acceptance Criteria

1. All planned event booths, signage, and materials are produced and used at events.
2. At least 2 MLabs representatives to attend each key event, engaging with attendees and potential partners.
3. Twitter campaign produces consistent biweekly posts for the full milestone duration.
4. Minimum of 5 podcasts or industry events attended, with active participation recorded.
5. Evidence of targeted regional outreach in Japan, including promotional content.
   1. Photos posted to X/Twitter for Socious and Impact Summit

Evidence of Completion

1. Event invoices and receipts for booth rental, signage, tickets, and travel.
2. Photos/videos of MLabs booth setups and team presence at events.
3. Screenshots and analytics from Twitter campaign posts.
4. Links to podcasts participation when available.
   1. This is contingent on the podcaster to posting publically in a timely manner within the 1 year scope of this Catalyst project.
   2. List of social media engagement for the year
5. Documentation of outreach efforts in Japan (meeting notes, media coverage, social posts).

Delivery Month

12

Cost

82824

Progress

20 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Budget/cost breakdown:

M1 – Production Safety Tool & Deployment (353 in Hours)

Production safety tool (Liquidation Bot) – 93

Manual bulk token price update – 32

Deploy on mainnet & integration tests – 80

Create initial mainnet token pools – 124

Instrument bots – 24

M2 – Observability & Telemetry (416 in Hours)

Instrument demo server – 31

Instrument off‑chain code – 62

Instrument indexer – 31

OT collector/Prometheus setup – 75

Telemetry collection from instrumented code – 62

Resource usage collection – 62

Grafana telemetry UI – 93

M3 – Cardano Node & Database Layer (421 in Hours)

Deploy Cardano node (Demeter/Cardanow) – 75

DB schema for position selection – 16

SQL layer in Haskell – 124

Fundamental SQL tests – 93

Advanced SQL tests – 62

Deploy Prometheus – 20

DB monitoring & migration setup – 31

M4 – Position Mgmt & Processing (131 in Hours)

LRU position selection – 6

Lock/unlock positions – 16

Parse position changes – 6

Add / Update / Rollback / Unlock / Remove positions – 28

Liquidity alert notifications – 75

M5 – Frontend Integration & UX (93 in Hours)

Pro styling & graphics – 31

Layout & staging – 31

Frontend integration with Pisa Fees API – 31

M6 – Outreach (Digital‑first, limited in‑person) (352 in Hours)

Biweekly Twitter content and marketing – 62

Community outreach & podcast appearances – 40

Impact Summit and Socius Team Attendance - 100

Consensus attendance - 50

RareEvo booth, Team attendance, and signage - 100

Subtotal: 1766 hours @120 USD/hour = 211,920 USD

Total (@ rate $0.51 USD / ADA): 415529 ADA

[Final Pitch] Value for Money

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

Feesaswap is a live protocol on Cardano mainnet that enables fee payments in non-ADA tokens. This significantly improves user experience by reducing friction for both users and dApps. Unlike conceptual approaches such as Babel Fees has yet to be implemented, our solution is production-ready and usable today. Developers can integrate seamlessly through provided APIs, SDKs, and a web frontend, with an open architecture that supports interoperability and composability across Cardano applications. By simplifying onboarding and allowing users to transact without ADA, Feesaswap lowers barriers to entry, attracts new users, and drives greater transaction volume. With this next round, we aim to scale integrations, expand token support, and grow adoption across the ecosystem.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes