Concentrated Liquidity Pools (CLP) for Cardano

[Proposal setup] Proposal title

Please provide your proposal title

Concentrated Liquidity Pools (CLP) for Cardano

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

182000

[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 DEX liquidity is fragmented and capital-inefficient, traders face high slippage and LPs earn poor returns due to lack of a reusable concentrated liquidity primitive.

[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.

We will make the smart contract source code public

[Theme Selection] Theme

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

DeFi

[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).

On Cardano, most DEXs use the standard AMM model, there is currently no DEX using a Concentrated Liquidity Pool (CLP) model

CLP focuses on capital efficiency for liquidity providers: It allows providers to choose a clear price range for their liquidity instead of spreading capital across the entire curve like existing AMM pools. With the same amount of capital, liquidity becomes thicker around the most actively traded price range.

CLP is designed as an open pool type: It can be integrated by other projects and aggregators, not locked inside a single DEX implementation.

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

The Prototype / MVP will include:

A web interface on testnet where users can select token pairs, set price ranges, and manage the list of pools they have created.

Public smart contracts on testnet for CLP.

The community will be able to access:

A testnet dApp link, using a testnet wallet to interact with CLP.

A GitHub repository containing the CLP smart contracts deployed on testnet.

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

Successfully deployed and running on testnet.

• At least 10 pools are created.
• At least 1,000 transactions are executed on testnet.
• At least 100 user join incentized testnet program

Successfully launching on Mainnet.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Most DEXs on Cardano currently use full-range AMM models. Liquidity from providers is spread across the entire price range, so when there are large trades, traders easily experience high slippage, and liquidity providers earn relatively low fees compared to the capital they lock.

Approach

• Build a Concentrated Liquidity Pool (CLP) on Cardano, where providers can choose a price range for their capital instead of supplying full-range, so liquidity is more concentrated.
• Design CLP as a standard pool type, allowing third parties to integrate it easily.

Major Features:

• Providers can choose a price range around the most actively traded prices to increase capital efficiency.
• Support multiple fee tiers for the same pair, matching different financial strategies and risk profiles of proiders.
• Providers can easily manage their capital by withdrawing liquidity and opening new positions in other pools or price ranges.

[Your Project and Solution] Impact

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

Deliverables to Impact outputs:

• Providers: They can allocate capital into price ranges where trading actually happens, earning more fees per unit of capital and managing their exposure more actively.
• Traders: Deeper liquidity around the market price reduces slippage on key pairs, improving trading experience and making Cardano more competitive as a DeFi base layer.

[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?

Team Capability:

Our team has hands-on experience building and deploying Cardano DeFi protocols, including

• Danogo Fixed-rate Lending – A lending protocol with fixed terms and predictable rates.
• Nio-App – A DeFi application integrating multiple financial services on Cardano.

We have expertise in smart contracts, off-chain infrastructure, and API services.

[Milestones] Project Milestones

Milestone Title

Architecture Design

Milestone Outputs

Outputs

• System architecture documents and flow diagrams for the CLP protocol
  • Complete architecture design how the Concentrated Liquidity Pool works.
• Complete on-chain specification
  • Finalized specification of all smart contract, including datums, redeemers, script parameters.

Acceptance Criteria

Acceptance Criteria:

• Finalize system architecture and technical design
  • Architecture must be fully documented and approved.
    • Smart Contract
    • Backend Service
• Build backend for
  • Pool creation
  • Supply/withdraw.

Evidence of Completion

Evidence of milestone completion:

• Technical design document: system architecture, data flow, logic (github link)

Delivery Month

2

Cost

22000

Progress

20 %

Milestone Title

Smart Contract deployment on testnet and mockup UI design

Milestone Outputs

Outputs

• Development of CLP smart contracts implementing:
  • Create Pool : on-chain logic to initialize a new CLP pool with its token pair, fee.
  • Supply/Withdraw: Allow liquidity providers to deposit funds into an existing pool and withdraw their share.
• UI prototype in Figma full flows
  • Figma prototype will be created to visualize CLP full flows
    • Create Pool
    • Supply/Withdraw

Acceptance Criteria

Acceptance Criteria:

• Deploy CLP smart contracts on Cardano testnet ccording to architecture
  • New pool can be created on testnet with expected parameters
  • Successfully supply liquidity to an existing pool and withdraw on testnet
• Mockup UI for Create Pool, Supply/Withdraw
  • Create Pool screens: select token pair, configure basic parameters, sign.
  • Supply/Withdraw screens: input liquidity amounts, see price range, sign

Evidence of Completion

Evidence of milestone completion:

• Public smart contracts on testnet (tx hash)
• Prototype UI display (Figma Link)

Delivery Month

4

Cost

40000

Progress

40 %

Milestone Title

Off-chain integration and complete frontend

Milestone Outputs

Outputs

• Development full off-chain flows on testnet
  • Create Pool
  • Add Liquidity
  • Withdraw Liquidity
• Complete frontend implementation based on the approved UI prototype
  • Fully integrated with off-chain and smart contract

Acceptance Criteria

Acceptance Criteria

• Off-chain can build and submit transactions for all flows (Create Pool, Add Liquidity, Withdraw Liquidity) on testnet without critical errors.
• Frontend can complete the full flows:
  • Connect wallet → Create pool → Add liquidity → Withdraw liquidity, with states correctly synced to on-chain results.

Evidence of Completion

Evidence of milestone completion:

• Deployed testnet web app (whilelist wallet) demonstrating full flows.
• Testnet transaction hash showing Create Pool, Supply/Withdraw Liquidity executed via dApp.

Delivery Month

8

Cost

60000

Progress

60 %

Milestone Title

Publish Testnet & Audit

Milestone Outputs

Output

• Launch a public testnet dApp, open to all users (no whitelist required)
• Collect community feedback and bug report.
• Finalize smart contract documentation and deliver to third-party to audit.

Acceptance Criteria

Acceptance Criteria

• Testnet dApp is publish accessible with all features (Create/Join Pool, Withdraw Liquidity).
• Community feedback and bug reports are collected
• Smart contract specs are frozen for audit scope.
• All high and critical security vulnerabilities identified during audit are fixed

Evidence of Completion

Evidence of milestone completion:

• Public URL testnet dApp on public channels (Website and X)
• Off-chain stats dashboard - number of transaction and wallets during testnet period (google sheet link)
• Public document collected feedback/bugs (google sheet link)
• Public audit report (github link).

Delivery Month

10

Cost

40000

Progress

80 %

Milestone Title

Close testnet & launch Mainnet

Milestone Outputs

Output

• Announcement close testnet
• Publish mainnet version including all fixed bugs, community feedback (where applicable), and audit results .
• Catalyst close-out report and video presentation .

Acceptance Criteria

Acceptance Criteria

• Public announcement close testnet on public channel ( X channel )
• Smart contracts are deployed on Cardano mainnet with full flows
• Mainnet dApp is live and functional for public users with all features (Create/Join Pool, Withdraw Liquidity).

Evidence of Completion

Evidence of milestone completion:

• Mainnet Smart contract is published ( tx hash)

• Public audit report (github link)

• Public mainnet dApp URL.

• Link to the Catalyst close-out report and link to the final video presentation.

Delivery Month

12

Cost

20000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Estimated Project Duration: 12 months – Total Budget: ₳182,000 (ADA/USD ≈ 0.4, updated 26 Nov 2025)

1/ Product Research (₳20,000)

• Research & specification phase to make sure the CLP design is realistic and clear before development
• Define data flow between smart contracts, off-chain services, frontend.
• Design system architecture: pool structure, LP positions, fee, price range
• high-level UX flows (create pool, Supply/Withdraw liquidity) to guide UI/UX and development.

2/ Project Management (₳17,000)

• Coordinate tasks, track milestones, maintain Catalyst reports, manage resources.

3/ Project Development (₳112,000)

• Build backend services and off-chain layer (transaction builder, indexer, APIs).
• Develop and maintain smart contracts
• Frontend UI implementation and integration according to milestones.
• Infrastructure costs

4/ Project Testing & Audit (₳33,000)

• Functional tests, deploy on testnet and mainnet, and prepare final reports and documentation.

[Final Pitch] Value for Money

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

Output is not a single app, but a reusable protocol primitive (open-source smart contracts )

Project includes public testnet and external audit, reducing future duplicate spending on “fix and rebuild” phases.

Taken together, scope, team size, regional cost base, and open-source nature of deliverables mean the requested ₳182,000 represents a reasonable and efficient investment for wider Cardano ecosystem.

[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