Cardano Smart Contract Benchmarking & Testing Tool

[Proposal setup] Proposal title

Please provide your proposal title

Cardano Smart Contract Benchmarking & Testing Tool

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

87050

[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?

Cardano smart contracts lack tools to evaluate performance using proven metrics, making it hard for developers to test, compare, & optimize their designs for scalability, reliability, and concurrency.

[Proposal Summary] Supporting Documentation

Supporting links

• https://docs.google.com/presentation/d/1RcJ5SSG4tIfQLPDXSLxGcP_MQ9EuTCmkHX_D-51XxZ8/present?slide=id.p
,
• https://www.ajol.info/index.php/zj/article/view/216947
,
• https://sites.google.com/view/yenatfantashifferaw/home

[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

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.

Yes. All code, benchmarks, documentation, and example contracts will be fully open source under the Apache-2.0 license.

[Theme Selection] Theme

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

Smart Contracts

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).

Existing tools in the Cardano ecosystem offer partial support for benchmarking or script cost analysis, but none provide a simple, combined way for developers to test how their contracts behave under real load or when many users interact at the same time. Current utilities can measure script size or estimate execution cost, but they do not focus on practical issues like UTxO contention, concurrency limits, or how specific state-machine steps fail during heavy usage.

This project is innovative because it brings all of these pieces together in one unified tool. Developers can run realistic load tests, identify repeated failures or hotspot UTxOs, and receive clear optimization guidance based on proven patterns. Instead of relying on separate research papers or isolated utilities, this tool gives a complete, developer-friendly workflow for testing, understanding, and improving smart contract performance, something that does not currently exist in the Cardano market.

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

Our MVP will show a basic end-to-end version of the benchmarking process. It will include example smart contracts, a script that sends many transactions to simulate multiple users, and a dashboard that displays success rates, failure types, and where UTxO conflicts happen.

Developers will be able to run the MVP on a local Cardano test environment or preprod and see how a real contract behaves under load. The prototype will be published on GitHub (Apache-2.0).

Describe realistic measures of success, ideally with on-chain metrics.

Success will be measured by the tool’s ability to run load tests on a sample contracts and produce clear metrics from the local cluster or preprod, including:

• Validation success rate
• Failure types (e.g., SpentUTxO, ScriptFailure)
• How often UTxO contention happens

If the dashboard correctly displays these results and developers can reproduce them on-chain using testnet data, the MVP is considered successful.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Our vision: “Helping Developers Build Faster, More Reliable dApps”

Introduction:

Cardano’s Extended UTxO (EUTxO) model offers determinism, security, and predictable fees, making it one of the most robust smart contract models in the blockchain space. However, this design also introduces unique performance considerations, especially when multiple users try to interact with the same on-chain state at the same time.

In our earlier research comparing Cardano’s EUTxO model with Ethereum’s account model, we used a structured set of performance metrics to measure speed, reliability, concurrency, validation success rate, and transparency. The results confirmed both the strengths and limitations of EUTxO.

Now, we aim to extend this research into a developer-focused benchmarking and optimization tool so that every Cardano smart contract can be evaluated and improved before mainnet deployment.

Problem Statement

Cardano smart contracts currently lack an accessible, standardized way to evaluate performance using proven metrics.

• Developers have no dedicated tool to simulate real-world loads and detect concurrency bottlenecks (e.g., UTxO contention).
• Performance issues are often discovered after deployment, leading to failed transactions, delays, and costly re-engineering.
• There is no shared performance baseline across the ecosystem, making it difficult to compare and optimize smart contract designs.

This gap slows adoption, reduces user trust, and makes it harder for developers to design scalable, reliable dApps.

Proposed Solution

We will create an open-source benchmarking and optimization tool that stress-tests Cardano smart contracts using proven evaluation metrics, detects UTxO contention, and provides actionable fixes before mainnet launch.

What the tool will do

Benchmark contracts using proven metrics

• Speed (transactions per second)
• Validation success rate (%)
• Reliability under repeated execution
• Concurrency handling (UTxO contention detection)
• Transparency and data integrity

Simulate realistic high-load conditions

• Run on local or preprod networks.
• Simulate many concurrent users performing contract actions (e.g., bids in auctions, escrow releases, token sales).
• Create scenarios that intentionally trigger UTxO contention to test scalability.

Analyze and classify failures

• Identify causes such as SpentUTxO, ScriptFailure, insufficient collateral, or node backpressure.
• Pinpoint “hotspot” UTxOs where contention occurs most often.

Provide actionable optimization suggestions

• Recommend proven fixes like:
• State sharding across multiple UTxOs
• Datum versioning to reduce conflicts
• Dedicated collateral UTxOs per wallet
• Off-chain batching for certain operations
• Redeemer usage b/c if redeemer is not used correctly it will create a backdoor.
• Include code patterns and examples for developers to apply immediately.

Deliver results

• dashboard showing throughput, latency, conflict breakdowns, and improvement after optimization.

Key features:

• Benchmarking using research-backed metrics : speed, validation rate, reliability, concurrency, transparency.
• High-load simulation : transaction patterns with configurable users, actions, and test durations.
• Failure classification : identify causes like SpentUTxO, ScriptFailure, insufficient collateral, node backpressure.
• Optimization guidance : suggest fixes.
• reporting : dashboard with results.

Methodology & Tools

Methodology

• Define metrics : speed, validation success rate, reliability, concurrency, transparency.
• Select test contracts : English auction, escrow, token sale, minting...
• Set up environment : deploy contracts to local or preprod testnet.
• Simulate load : run transaction volumes to replicate real-world and peak scenarios.
• Collect data : log performance metrics, transaction outcomes, and error classifications.
• Analyze and optimize.
• Deliver outputs : publish results in a report, release the open-source tool, and onboard developers with guides.

Tools:

• Blockchain Infrastructure: Cardano-node (local , preprod testnet)
• Contract Development: Plutus/ Aiken
• Blockchain Interaction: off-chain tools like lucid, mesh
• Simulation and API: Python , pycardano, FastAPI
• Data Storage: PostgreSQL/ other DBs
• Frontend Dashboard: Next.js, TypeScript, ECharts/D3 for visualization
• Reporting: PDF export or json
• Version Control and CI/CD: GitHub, GitHub Actions

Conclusion

This project bridges the gap between academic performance research and practical developer tools for Cardano. By combining benchmarking, stress testing, and optimization in one open-source platform, we empower developers to detect and resolve concurrency bottlenecks before mainnet deployment.

The result will be:

• A shared performance baseline for Cardano smart contracts.
• A repeatable process for testing and improving contract designs.
• Higher-quality, more reliable dApps that improve the Cardano user experience and strengthen the ecosystem.

By moving performance validation earlier in the development lifecycle, we reduce risks, lower costs, and help ensure Cardano is seen as a scalable, developer-friendly blockchain for the long term.

[Your Project and Solution] Impact

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

This project strengthens the Cardano ecosystem by giving developers an easy, open-source tool to test how their smart contracts perform under real-world conditions. Today, many performance issues are only discovered after deployment. Our tool helps developers find these problems early, leading to more stable and reliable dApps.

Key impacts:

• Better-quality dApps: Developers can spot bottlenecks, UTxO conflicts, and failure patterns before going to mainnet, improving overall reliability.
• Fewer failed transactions: Early testing reduces unexpected issues like contention, delays, and costly fixes after users are already interacting with the dApp.
• Shared performance standards: Using simple, consistent metrics helps the community compare designs and learn best practices.
• Faster development cycles: Developers get quick feedback on how their contracts behave under load, allowing faster iteration and innovation.
• Stronger trust in Cardano: More stable and user-friendly dApps improve the experience for end users and make Cardano more attractive to new builders.
• Open-source contribution: All tools, metrics, and results will be released under Apache-2.0 so anyone can use, modify, or extend the work.

By turning research insights into a practical tool, this project directly supports Cardano’s goal of being a scalable, developer-friendly blockchain.

[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?

Our team has strong experience in Cardano smart contract development, Plutus programming, and blockchain performance testing. We previously authored the research paper ** “Validation on Metrics for State Machine Performance in Account-Based and EUTxO-Based Smart Contracts”** , where we benchmarked Cardano and Ethereum using proven metrics. This shows our ability to deliver technical, research-driven projects with measurable results.

How we ensure trust and accountability

• Open-source delivery: All code, data, and documentation will be released under Apache-2.0.
• Transparent progress: Milestones, GitHub commits, and demo videos will be shared publicly.
• Community involvement: Cardano developers will be invited to test the tool and provide feedback throughout development.

How we validate feasibility

• Proven methodology: We will use the same metrics and testing approach that we validated in our published research.
• Pilot benchmarks: Initial tests will run on known Plutus/Aiken contracts (e.g., auction, minting) in a local cluster to confirm that metrics are captured correctly.
• Preprod stress testing: Experiments on the preprod testnet will verify concurrency behavior and contention detection.
• Beta testing: Community developers will test the tool on their own contracts to confirm accuracy, usefulness, and reproducibility.

Team Experience

• Eyasu Birhanu – Certified Cardano smart contract developer with hands-on experience in Plutus , concurrency patterns, testnet deployments, and developer tooling.
• Yenatfanta Shifferaw – Former researcher at IOG. Co-author of performance metrics research now applied in this project.

Together, we bring a strong combination of protocol research and practical engineering.

Track Record

• Delivered multiple Catalyst-funded projects with measurable outcomes.
• Built Cardano developer tools and deployed decentralized systems on testnet/mainnet.
• Conducted Cardano-focused training at AAU, AASTU, and Dilla University.
• Active contributors in the Cardano developer community.

Summary

Our research background, technical experience, and community involvement give us a solid foundation to deliver a reliable benchmarking and optimization tool. The project is feasible, realistic, and aligned with our team’s proven capabilities.

[Milestones] Project Milestones

Milestone Title

Research Finalization & Frontend Setup

Milestone Outputs

• Defined list of performance metrics (validation success rate, speed, reliability, basic concurrency signals).
• Finalized example contracts for testing (auction + minting).
• Initial dashboard with placeholder charts and sample test data.
• Basic configuration UI where users can select parameters such as number of users and test duration.

Acceptance Criteria

• The list of metrics is documented and agreed upon by the team.
• Example contracts compile
• The dashboard loads, displays sample charts, and shows test configuration options.
• The configuration UI allows selecting test parameters and saves them in local state.

Evidence of Completion

GitHub repository with:

• metrics documentation
• example contracts
• dashboard code
• configuration UI code

Short demo video showing:

• dashboard opening
• sample charts
• configuration screen functioning

Milestone report summarizing decisions, setup steps, and screenshots.

Delivery Month

2

Cost

15550

Progress

20 %

Milestone Title

Backend Development & Environment Setup

Milestone Outputs

• Working local Cardano setup and preprod connection.
• A Python/FastAPI load simulation engine that can send configurable batches of transactions.
• Metrics storage using PostgreSQL/DB (basic tables for logging results).
• API endpoints to send test parameters and retrieve logged metrics.
• Basic error classification system (e.g., SpentUTxO, ScriptFailure, CollateralFailure).

Acceptance Criteria

• The simulation engine can send transactions to the example contract on a local.
• The system logs success/failure outcomes into PostgreSQL/DB.
• API endpoints return stored metrics to the frontend without errors.
• Error types are correctly identified and labeled using the basic taxonomy.
• Preprod test transactions confirm connectivity and logging.

Evidence of Completion

GitHub repo updates including:

• Python/FastAPI simulation engine
• Cardano-node scripts/config
• PostgreSQL schema
• API documentation

Demo video showing:

• simulation engine running
• transactions sent
• metrics logged and fetched via API

Screenshots of local /preprod connectivity.

Milestone report summarizing backend progress and test results.

Delivery Month

6

Cost

29750

Progress

50 %

Milestone Title

Benchmark Execution & Optimization Module

Milestone Outputs

• Load tests executed on all example contracts (auction + Escrow, minting) under different load levels.
• Detection of hotspot UTxOs and classification of concurrency-related failures.
• A simple rule-based suggestion module that provides clear optimization tips (e.g., state splitting, batching, datum changes).
• Integration of real benchmark results into the dashboard, showing success/failure rates and contention patterns.

Acceptance Criteria

• Load tests successfully run with low, medium, and high transaction volumes.
• Dashboard displays data from the backend, including success rate, failure classifications, and repeated UTxO conflicts.
• The suggestion module produces basic, deterministic recommendations based on the logged metrics.

Evidence of Completion

GitHub updates containing:

• load-test scripts
• suggestion rules engine
• dashboard integration code

Demo video showing:

• load tests running
• metrics appearing on the dashboard
• optimization suggestions displayed

Milestone report summarizing:

• test conditions
• observed bottlenecks
• sample optimization outputs
• screenshots of dashboard

Delivery Month

9

Cost

24400

Progress

80 %

Milestone Title

Public MVP & Final Release

Milestone Outputs

• Full open-source release of the tool on GitHub (Apache-2.0).
• Short research summary showing benchmark charts and key findings.
• recorded video tutorial demonstrating how to run tests.
• Feedback collected from early testers and simple improvements made.
• Project closeout report and video

Acceptance Criteria

• The GitHub repository contains all code, documentation, and installation steps.
• The dashboard can display benchmark data from the backend.
• The research summary includes charts for success rate, failures, and UTxO conflict patterns.
• Recording is published and accessible to the community.
• Project closeout report and video delivered according to Catalyst rules.

Evidence of Completion

• GitHub release link.
• Screenshots or charts from the final benchmark report.
• A short report summarizing tester feedback and improvements made.
• Milestone report submitted with links to all deliverables.
• Public links to the closeout report and video available as required by Catalyst.

Delivery Month

12

Cost

17350

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Milestone 1: Research, Metrics Definition, and Frontend UI

Project Management & Architecture:

Project Lead: 2,900 ADA × 1.5 (months) = 4,350 ADA

Cardano Smart Contract Developer / Blockchain Architect: 2,900 ADA × 1.5 (months) = 4,350 ADA

Infrastructure & Tools:

Research tools, benchmarking references, API access = 1,500 ADA

Documentation & Reporting = 750 ADA

Design:

Web Designer (Dashboard UI/UX): 2,400 ADA × 1.5 (months) = 3,600 ADA

Miscellaneous:

Contingency Fund = 1,000 ADA

Grand Total (Milestone 1): 15,550 ADA

Milestone 2: Backend Simulation Engine, Load Testing & Metrics Storage

Backend & Simulation Development:

Project Lead: 2,900 ADA × 2 (months) = 5,800 ADA

Simulation Engine Developer (Python/FastAPI): 2,900 ADA × 2 (months) = 5,800 ADA

Data Engineer (PostgreSQL & Metrics API): 2,900 ADA × 2 (months) = 5,800 ADA

Web Development:

Web Developer (Frontend integration with backend APIs): 2,800 ADA × 2 (months) = 5,600 ADA

Infrastructure:

Test cluster setup (Cardano-node, Lucid) = 2,500 ADA

Cloud hosting & compute = 2,000 ADA

Miscellaneous:

Contingency Fund = 1,250 ADA

Documentation & Reporting = 1,000 ADA

Grand Total (Milestone 2): 29,750 ADA

Milestone 3: Benchmarking Execution, Conflict Analysis & Optimization Engine

Benchmarking & Analysis:

Project Lead: 2,900 ADA × 1.75 (months) = 5,075 ADA

Data Analyst (Performance metrics & visualization): 2,900 ADA × 1.75 (months) = 5,075 ADA

Blockchain Developer (Contract deployment & testing): 2,900 ADA × 1.75 (months) = 5,075 ADA

Optimization Rules Engine:

EUTxO Optimization Developer: 2,900 ADA × 1.75 (months) = 5,075 ADA

Infrastructure:

Additional test servers & simulation tools = 2,000 ADA

Miscellaneous:

Contingency Fund = 1,100 ADA

Documentation & Reporting = 1,000 ADA

Grand Total (Milestone 3): 24,400 ADA

Milestone 4: Integration, MVP , and Developer Onboarding

Integration & Finalization:

Project Lead: 2,900 ADA × 1.5 (months) = 4,350 ADA

Plutus/Aiken Developer (contract examples): 2,900 ADA × 1.5 (months) = 4,350 ADA

Full-Stack Developer (Final UI + Backend integration): 2,900 ADA × 1.5 (months) = 4,350 ADA

Outreach:

Testing = 2,500 ADA

Miscellaneous:

Contingency Fund = 1,000 ADA

Documentation, Final Report & Workshop Material = 800 ADA

Grand Total (Milestone 4): 17,350 ADA

**TOTAL REQUESTED BUDGET: 87,050 ADA **

[Final Pitch] Value for Money

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

This project delivers two high-impact outcomes for the Cardano ecosystem within a single budget:

• A research-backed performance benchmarking framework to establish a shared, objective baseline for smart contract performance.
• A practical, open-source optimization tool that enables developers to detect and fix concurrency bottlenecks before mainnet deployment.

By combining a proven research methodology with hands-on developer tooling, the project directly addresses one of Cardano’s most pressing scalability and performance challenges.

For a modest budget of 87,050 ADA, the Cardano community will gain:

• A fully open-source benchmarking & optimization tool to measure and improve dApp performance before launch.
• Proven performance metrics adapted from prior academic research, enabling reproducible evaluation of scalability, reliability, and concurrency handling.
• Actionable optimization patterns to resolve UTxO contention issues, increasing transaction success rates and improving user experience.
• A public research report detailing methodology, benchmarks, and results, a lasting educational resource.
• Example Plutus contracts and integration guides to make performance testing accessible to all developers.
• Developer onboarding and workshops to ensure adoption and long-term ecosystem impact.

All code will be released under Apache-2.0, ensuring the tool remains free, reusable, and continuously improvable by the community, multiplying the return on investment over time.

This combination of measurable impact, open-source sustainability, and direct alignment with Cardano’s developer growth goals ensures exceptional value for money.

[Self-Assessment] Self-Assessment Checklist

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

[Required Acknowledgements] Consent & Confirmation

I Agree

Yes