Last updated 3 months ago
Cardano DeFi is secure but lacks capital efficiency. Liquidity is fragmented, execution is slow, slippage is high, and institutional trading isn’t supported, limiting volume and TVL growth.
Adavelocity unifies liquidity across DEXs with fast non-custodial execution, arbitrage, and market-making tools, reducing slippage and improving pricing to support HFT trading on Cardano.
Please provide your proposal title
Adavelocity-High Frequency Trading platform for Cardano DeFi
Enter the amount of funding you are requesting in ADA
140000
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?
Cardano DeFi is secure but lacks capital efficiency. Liquidity is fragmented, execution is slow, slippage is high, and institutional trading isn’t supported, limiting volume and TVL growth.
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
Please provide details on the intellectual property (IP) status of your project outputs, including whether they will be released as open source or retained under another licence.
Apache License 2.0
Please choose the most relevant theme and tag related to the outcomes of your proposal
DeFi
Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).
Cardano has strong liquidity providers and several DEXs, yet the ecosystem still behaves like a set of independent markets. Liquidity does not compound across venues, institutional liquidity cannot enter efficiently, and each DEX must acquire, retain, and incentivize liquidity on its own, a costly and unsustainable model.
Adavelocity introduces a new financial model for Cardano DeFi: liquidity that is more valuable because it becomes reusable, coordinated, and high-frequency, rather than fragmented and idle.
What makes the financial model innovative?
1.Liquidity earns more without moving
2. Price accuracy becomes a protocol outcome, not a side effect
3. A fair market that does not depend on whales or farms
4. Institutions become liquidity contributors, not extractors
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
The MVP will demonstrate that Cardano liquidity can operate as a single unified market without requiring new DEXs, custodial aggregation, or liquidity migrations. It will show that a non-custodial routing and execution layer can consistently deliver better pricing and lower slippage than interacting with a single DEX directly.
The MVP will include:
Cross-DEX Smart Order Routing
The system will execute trades across multiple DEXs and automatically select the best execution venue at the time of the transaction. The prototype will show measurable improvement in slippage and pricing outcomes versus executing on individual DEXs.
Automated Price-Convergence Mechanism (Arbitrage Layer)
The MVP will demonstrate how price discrepancies between DEXs can be removed through deterministic arbitrage logic, improving market efficiency without custody or liquidity migration.
Liquidity-Reinforcement Strategies
A subset of market-making functionality will run publicly to demonstrate reduced volatility on execution and higher depth on supported pairs.
Public APIs and SDK Access
Developers will be able to test algorithmic strategies on top of the MVP infrastructure without building execution logic from scratch.
The MVP will be deployed on Cardano Testnet. Access will be available through:
A GitHub repository containing:
After community testing and refinement, the MVP results and performance benchmarks will be published publicly.
Describe realistic measures of success, ideally with on-chain metrics.
Success will be measured by improvements in execution quality and real usage of the protocol. All metrics will be observable on-chain and publicly reported.
Routing & Execution
Users receiving better pricing compared to direct single-DEX execution
Reduction in slippage during trade execution
Usage & Adoption
Number of unique wallets interacting with Adavelocity over time
Returning users rather than one-time usage
Integrations
Working live integrations with Cardano DEXs
Wallets, apps, or developers using the API/SDK
Market Efficiency
Reduction in price divergence between integrated DEXs
Increase in average trade size that can be executed without large price impact
What success means
If users consistently receive better execution, slippage reduces, and more applications integrate with the routing layer over time, then the protocol is improving liquidity efficiency across Cardano, which is the core goal.
Please describe your proposed solution and how it addresses the problem
By nature, Cardano DeFi is highly technically sophisticated yet economically inefficient. Liquidity is fragmented across a set of independent DEXs, which individually serve isolated markets rather than one cohesive trading environment. Each DEX is required to source its own liquidity, maintain its own pricing dynamics, and manage execution risk. This leads to fragmented liquidity, diverging prices across platforms, and larger trades moving the market due to shallow depth. This is the principal friction to the arrival of professional capital and ongoing trading volume onto Cardano.
Adavelocity directly addresses this structural limitation. It doesn't build another DEX, liquidity pool, or liquidity incentive mechanism. Instead, it introduces a non-custodial execution and liquidity routing layer that connects liquidity across DEXs, enabling Cardano to function as a single, deeper, and more efficient market-without merging protocols, changing their autonomy, or taking custody of user funds.
1. Cross-DEX liquidity aggregation and best-venue execution
Adavelocity constantly benchmarks liquidity on every major DEX and routes orders to the venue — or combination of venues — yielding the best execution at that instant. The routing layer considers price, liquidity depth, fee structure, slippage curves, and expected market impact. This results in better pricing, less slippage, and more predictable execution than a user could get from any one DEX alone.
2. Market-wide price convergence
This is today's version: price discrepancies persist across Cardano DEXs because arbitrage is done privately and irregularly, instead of systematically and transparently. The outcome is delayed price discovery and users who are unknowingly trading at a worse price on venue A than venue B.
Adavelocity incorporates controlled arbitrage mechanisms that automatically and continuously remove price gaps between venues. The routing layer executes risk-bounded arbitrage trades when the price of the same asset diverges across exchanges to pull prices back into alignment.
This stabilizes pricing, accelerates price discovery and increases fairness for everyday traders without enabling extractive MEV behavior.
3. Liquidity reinforcement, not liquidity fragmentation
Today, DEXs are racing to entice liquidity through offering incentives or adding new pools. Doing so further expands the number of venues, without expanding depth. Additional pools increase the appearance of liquidity, not its real economic utility.
Adavelocity deploys its liquidity-supporting strategies - limited market-making, controlled backfilling and selective order-balancing - as shared public infrastructure rather than as private bots serving only one participant.
That is to say, liquidity can be utilized more efficiently to support more significant trades with low volatility, instead of pulling liquidity out of existing DEXs.
4. Designed for all user segments: retail to institutional
Adavelocity is not a product catering to the needs of just one category of users. The advantages emanate transparently to all participants:
Retail traders automatically get better execution without changing wallets or having to learn new tools.
Small firms and consistent traders receive predictable fills and pricing stability
Professional traders get an automation infrastructure without having to run their own routing logic.
deterministic execution, low latency, data endpoints and integration-grade APIs for Institutions.
Rather than optimize the system for the most powerful participants, Adavelocity increases efficiency for the whole ecosystem.
5. High-performance execution done the Cardano way
It achieves fast execution without compromising on decentralization.
Hydra Heads enable sub-second execution of routing calculations and optional batching logic while transaction settlement remains fully on Cardano. Mithril allows lightweight state synchronization between the infrastructure components without centralizing control.
Adavelocity turns multiple DEXs into one cooperative liquidity network by providing the following:
a single price for all venues
The result is higher capital efficiency:
It means, simply put, the system scales all existing liquidity, rather than trying to replace it.
By removing the structural inefficiencies holding Cardano DeFi back today, Adavelocity:
Solution Overview
AdaVelocity is a cross-DEX liquidity and execution protocol that transforms Cardano’s fragmented DeFi ecosystem into a coordinated, high-efficiency trading network.
It provides:
The design combines on-chain smart contracts, off-chain routing and simulation engines, and a distributed oracle mesh to deliver high-frequency, low-latency execution.
**Off-Chain Layer **
On-Chain Smart Contracts
Core Components
1 Unified Liquidity Interface (ULI)
2 Virtual Liquidity Pools (VLPs)
3 Routing & Simulation Engine (Off-Chain)
4 Micro-Batching & Settlement Coordinator
5 Arbitrage Executor (“Public Arbitrage Layer”)
6 Institutional API Gateway
7 Price Oracle Mesh
8 Tech:
Smart Contract Design - Modules
A. Liquidity Adapter Module
Connects to individual DEX pools
Normalizes interfaces
Prevents reentrancy attacks
Safe math for AMM calculations
B. Virtual Pool Module
Creates synthetic pool representation
Stores routing metadata
Exposes virtual slippage curves
C. Settlement Module
Validates batches
Executes multi-venue swaps
Enforces deterministic ordering
Emits settlement receipts for accounting
D. Fee & Rewards Module
Collects protocol fees
Redistributes arbitrage profits
Allocates usage-based rewards to LPs
Please define the positive impact your project will have on the wider Cardano community
Adavelocity contributes to the Cardano community by improving the economic efficiency of the entire DeFi ecosystem rather than benefitting a single platform or user group. Today, liquidity sits in separate pools, which limits the trading experience, discourages institutional capital, and forces DEXs into constant competition for incentives. By coordinating liquidity instead of splitting it, the project makes Cardano a more attractive place to trade, build, and deploy capital.
Key positive effects for the Cardano ecosystem:
Higher liquidity productivity
Existing liquidity generates more volume and more fee revenue without requiring new token incentives or farming programs. This reduces the long-term cost of bootstrapping DeFi on Cardano.
Better trading experience for regular users
People no longer need to compare platforms manually or tolerate poor pricing. Fairer execution builds confidence among everyday users, not just experts.
Fairer markets for small traders and small businesses
Reduced slippage and more stable execution remove a hidden disadvantage that small traders currently face compared to automated actors.
A pathway for institutional adoption
Predictable execution and stable pricing are critical requirements for professional capital. Meeting those requirements opens the door to significant new liquidity flows.
More volume and fee generation for DEXs
DEXs do not lose users or liquidity to Adavelocity. Instead, they gain activity and fee revenue without needing to change their design or operate differently.
A more competitive Cardano globally
Faster, cheaper, and fairer execution makes Cardano more attractive compared to other ecosystems, helping retain users and builders long-term.
The impact of Adavelocity is that Cardano becomes a place where trading feels good, works reliably, and supports growth for everyone, not just the biggest players, it brings diverse groups of traders into cardano dex ecosystem.
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?
The core team has direct experience in building low-latency systems, smart contracts, liquidity automation tools, and scalable backend infrastructure. Members have previously delivered production-grade technology, market-data platforms, algorithmic trading systems, and distributed compute environments. This background enables us to build the routing engine, liquidity automation modules, and Hydra-based execution layer in a reliable and secure manner.
To ensure feasibility and accountability, the delivery plan is based on incremental validation rather than large assumptions.
The members have very good understanding of trading and protocols. team members have buid dex connector for open source tool like humming bot to dex like minswap and sundae swap.
The project will demonstrate value step-by-step, proving each core component on testnet before advancing:
Routing engine MVP: verify that best-execution routing consistently outperforms direct single-DEX execution.
Price convergence module: verify that pricing gaps between DEXs are reduced in controlled scenarios.
Liquidity reinforcement module: verify that slippage improves for medium and large trades compared to baseline.
Public API / SDK: verify that external developers and strategies can integrate without custom infrastructure.
Each milestone is measurable, recorded on testnet, and published openly so the community can validate progress. The protocol design is fully non-custodial, and audits and performance testing will be carried out prior to mainnet deployment.
We will report:
Feasibility comes from a combination of:
Together, these ensure the project is not only technically deliverable but delivered with accountability and validation at every stage.
Milestone Title
System Blueprint, Architecture, and Project Foundation
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
2
Cost
40000
Progress
30 %
Milestone Title
Price Aggregation Engine & Routing Logic Research Prototype
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
4
Cost
40000
Progress
60 %
Milestone Title
End-to-End Routing Prototype
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
6
Cost
35000
Progress
90 %
Milestone Title
Documentation, Mainnet Launch & Project Close-Out
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
8
Cost
25000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Milestone 1 – System Blueprint, Architecture, and Project Foundation
Duration: 1 Month
Backend Developer: 30 person-days × ₳400/day = ₳12,000
Smart Contract Developer: 25 person-days × ₳500/day = ₳12,500
Solution Architect: 20 person-days × ₳500/day = ₳10,000
QA / Testing: 10 person-days × ₳300/day = ₳3,000
Infrastructure & tooling = ₳2,500
Total: ₳40,000
Milestone 2 – Price Aggregation Engine & Routing Logic Research Prototype
Duration: 2 Months
Backend Developer: 30 person-days × ₳400/day = ₳12,000
Smart Contract Developer: 25 person-days × ₳500/day = ₳12,500
Integration Engineer: 25 person-days × ₳400/day = ₳10,000
QA / Testing: 10 person-days × ₳300/day = ₳3,000
Infrastructure & tooling = ₳2,500
Total: ₳40,000
Milestone 3 – End-to-End Routing Prototype
Duration: 2 Months
Backend Developer: 25 person-days × ₳400/day = ₳10,000
Smart Contract Developer: 15 person-days × ₳500/day = ₳7,500
Frontend / SDK Developer: 25 person-days × ₳300/day = ₳7,500
QA / Testing: 20 person-days × ₳300/day = ₳6,000
Infrastructure & tooling = ₳4,000
Total: ₳35,000
Milestone 4 –Documentation, Mainnet Launch & Project Close-Out
Duration: 2 Months
Backend Developer: 10 person-days × ₳400/day = ₳4,000
Technical Writer / Documentation: 12 person-days × ₳250/day = ₳3,000
External Audit (security review) = ₳14,000
Infrastructure & monitoring = ₳4,000
Total: ₳25,000
Total Project Budget: ₳140,000 ADA
How does the cost of the project represent value for the Cardano ecosystem?
This project delivers value for money by improving the performance of the entire Cardano DeFi ecosystem rather than benefiting a single application. Adavelocity does not require incentives, liquidity subsidies, or ongoing treasury support. Once developed, the protocol continues to generate value without additional cost to the Cardano community.
Instead of building another DEX or liquidity product that fragments the market further, this project strengthens every DEX and trading venue already live on Cardano. One investment benefits multiple platforms and thousands of users, which makes the cost more efficient than funding multiple isolated tools.
The proposal funds:
Backend execution engine and routing logic
Smart contract development
Hydra integration for performance
Developer-accessible API and SDK
Testing, audits, and documentation
These deliverables create shared infrastructure that can be reused indefinitely by DEXs, wallets, developers, liquidity providers, and institutions, at no additional cost to the ecosystem.
The success of this project increases:
Trading volume across DEXs
Fee revenue for liquidity providers
Retention of DeFi users
Attractiveness of Cardano as a high-performance trading environment
The budget is structured around milestones, and funding is only used to build, test, audit, and deploy the protocol. No part of the budget depends on token incentives or emissions.
I confirm that evidence of prior research, whitepaper, design, or proof-of-concept is provided.
Yes
I confirm that the proposal includes ecosystem research and uses the findings to either (a) justify its uniqueness over existing solutions or (b) demonstrate the value of its novel approach.
Yes
I confirm that the proposal demonstrates technical capability via verifiable in-house talent or a confirmed development partner (GitHub, LinkedIn, portfolio, etc.)
Yes
I confirm that the proposer and all team members are in good standing with prior Catalyst projects.
Yes
I confirm that the proposal clearly defines the problem and the value of the on-chain utility.
Yes
I confirm that the primary goal of the proposal is a working prototype deployed on at least a Cardano testnet.
Yes
I confirm that the proposal outlines a credible and clear technical plan and architecture.
Yes
I confirm that the budget and timeline (≤ 12 months) are realistic for the proposed work.
Yes
I confirm that the proposal includes a community engagement and feedback plan to amplify prototype adoption with the Cardano ecosystem.
Yes
I confirm that the budget is for future development only; excludes retroactive funding, incentives, giveaways, re-granting, or sub-treasuries.
Yes
I Agree
Yes
Team members:
Project Lead: Sutapa Roygupta
Skills: Cardano Developer, AI Engineer and Full Stack Developer, Agile Project Management, Leadership, DevOps, Continuous Integration and Continuous Delivery (CI/CD), Scope Analysis, Market research.
Experience: 15+ years of experience in product development, including Cardano Development Experience, managed multiple projects, from ideation to deployment, using agile methodologies and best practices. Contributed to the growth and improvement of products and services, by partnering with internal and external stakeholders, conducting market research.
https://www.linkedin.com/in/sutapa-roygupta-4a5a0634/
Software Developer: Rayan Ahmad
Skills: Full Stack Developer, Cardano Smart Contract Developer, Web3 & dApp Engineer
Experience: Built production-grade dApps in Cardano ecosystem, including Liquidity pools, with on-chain lending logic and DEX integrations; front-end and back-end development across multiple platforms; strong smart contract development experience in Plutus and Lucid.
LinkedIn: https://www.linkedin.com/in/rayan-ahmad-25nov/
Visual Designer: Avishek Paul
Skills: UI/UX Design, Concept Art, Branding, Digital Illustration, 3D Modeling & Animation
Experience: 5+ years of professional and freelance graphic design experience; previously Creative Designer at AIQUANT Technologies and Visual Designer at InnerKraft Health; strong background in branding, poster and logo design, storyboard creation, and high-quality UI/visual design for web applications.
LinkedIn: https://www.linkedin.com/in/avishek-paul-23735415b
Software Developer: Snehasish Paul
Skills: Full Stack Development (Spring Boot & React), Microservices Architecture, API Engineering, SQL/PostgreSQL, Web3 Integration on Cardano
Experience: 3+ years of full-stack engineering experience building production-grade applications end-to-end. Currently SDE-2 at AIQUANT Technologies working on scalable blockchain-enabled systems, including Cardano-based dApps. Previously contributed to multiple large enterprise products at RankTech Solutions, including AI-based live claim settlement, remote healthcare services, and legacy platform upgrades.