Hydra Playground – Codespaces, UI Guide and AI Assist System

[Proposal setup] Proposal title

Please provide your proposal title

Hydra Playground – Codespaces, UI Guide and AI Assist System

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

107160

[Proposal Summary] Time

Please specify how many months you expect your project to last

10

[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?

Learning and experimenting with Hydra Heads on Cardano is difficult due to steep learning curves, fragmented resources, lack of hands on environments, and cryptic errors that slow developer adoption.

[Proposal Summary] Supporting Documentation

Supporting links

• https://hydra-pact.vercel.app
,
• https://hydra-tipjar.vercel.app
,
• https://github.com/independenceee/playground

[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.

All project outputs will be fully open source. Key details include:

• Code Repository: Hydra Playground, templates, and demo tools hosted publicly on GitHub.
• License: MIT License, allowing free use, modification, and redistribution with attribution.
• IP Status: No proprietary restrictions; fully open for community use and contribution.
• Accessibility: Developers can access, study, and build upon the project for educational or commercial purposes.

[Theme Selection] Theme

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

Layer2

[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).

Hydra Playground is the first fully integrated, hands-on educational and prototyping platform for Hydra Layer-2 on Cardano. Unlike existing documentation, tutorials, or isolated workshops, our project combines:

• Interactive Codespaces – A ready-to-use development environment where users can launch Hydra nodes and Heads directly, test multi-party transactions, and experiment with Layer-2 features.
• Practical, reusable Templates – Includes multiple Hydra Head setups (basic head, tip-jar, pact, and more) that users can modify or deploy immediately.
• Step-by-Step UI Workflow – Guides developers through every stage of Hydra Head creation and DApp deployment without requiring prior advanced expertise.
• AI-Powered Error Detection & Guidance – Automatically identifies misconfigurations, missing participants, incorrect UTxO handling, or commit errors, offering real-time suggestions and corrections.

This integration of interactive environment + reusable templates + workflow UI + AI assistant is unique. Previous solutions are either theoretical, fragmented, or one-off tutorials. Hydra Playground lowers the learning curve, accelerates Hydra adoption, and creates open-source resources for developers globally.

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

The Hydra Playground MVP will demonstrate:

• Full Hydra DApp Lifecycle: Users can create a Hydra Head, commit UTxOs, open the Head, perform on-chain/off-chain transactions, and close the Head.
• Interactive Templates: Deploy pre-built examples such as tip-jar, poll, and multi-signer Heads. Users can also build a Head from scratch.
• Step-by-Step Visual Workflow: Walks users through participant selection, UTxO preparation, transaction submission, and closing the Head.
• AI Error Detection: Highlights mistakes in configuration or transaction steps and provides corrections or code snippets.

Access:

• Web platform: Accessible publicly at a sandbox URL for testing (to be deployed on Cardano testnet).
• Open-source repository: All templates, code, and documentation will be hosted on GitHub, enabling full reuse and contribution by the community.
• Demo Videos & Guides: Step-by-step tutorials for users who cannot immediately access the Codespaces environment.

The prototype demonstrates both technical feasibility and educational impact, allowing learners to deploy working Hydra DApps without needing advanced infrastructure knowledge.

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

Technical and Educational Metrics:

• Hydra Head Deployments: Number of Heads created and transactions executed on the Cardano testnet.
• User Engagement: 30+ active learners using the platform within the first 3 months. Completion of at least 1 Hydra DApp by 75% of users.
• AI Guidance Effectiveness: Reduction in user errors when deploying Heads compared to unaided attempts.
• Open-Source Contributions: Number of forks, pull requests, or new templates contributed by community developers.

Community & Ecosystem Impact:

• Increase in Layer-2 DApps launched using Hydra, tracked via testnet deployment data.
• Feedback and surveys showing ≥80% confidence among learners to deploy working Hydra DApps independently.
• Engagement in developer channels (Discord/Telegram), including Q&A, source code sharing, and mentorship.

These measurable outcomes ensure that the prototype is not just a demo, but a functional, scalable, and reusable platform contributing to Hydra adoption and the wider Cardano ecosystem.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Current Problems

1. Lack of practical documentation and guides: Official Hydra documentation is mostly theoretical or fragmented, making it difficult for developers to follow. Few real-world examples or step-by-step workflows exist for beginners to quickly apply Hydra concepts. Developers often have to figure out how to build Heads, configure multi-party setups, and run test nodes on their own.
2. Lack of developer-ready tools: There is no centralized environment to deploy, run, and test Hydra Heads efficiently. Running nodes and heads outside tutorials requires server or CLI skills. Limited ready-made DApp templates make it difficult for learners to experiment with multiple use cases.
3. High learning curve for Hydra Layer-2: Hydra Layer-2 workflows are complex, with multiple conditional steps. Beginners frequently encounter errors such as missing participants, incorrect commit formats, insufficient UTxOs, or invalid transaction schemas. Without visual guidance, the learning curve is steep, slowing adoption.
4. Lack of intelligent error detection and support: Developers have no tool to automatically analyze logs and detect mistakes. Troubleshooting requires manual debugging or consulting scattered documentation. Common errors slow learning, increase frustration, and discourage new users.
5. Unsustainable and non-reusable learning resources: One-time workshops or courses do not produce reusable templates or open-source resources. The community cannot contribute new templates or improve workflows. This limits scalability and long-term growth of the Hydra ecosystem.
6. Adoption barriers for Hydra and Cardano Layer-2: The shortage of developers skilled in Hydra Layer-2 slows DApp deployment. Lack of easy-to-access test environments reduces Layer-2 adoption. A limited developer community hinders ecosystem growth and the onboarding of new projects.

Solution

Hydra Playground is a practical, hands-on platform addressing these challenges by combining interactive templates, step-by-step UI workflows, AI-assisted guidance, and reusable open-source resources to help learners become capable Hydra developers.

1. Interactive Codespaces for Direct Development: VSCode-like cloud environment for deploying Hydra nodes and Heads in a containerized sandbox. 3–5 ready-made templates (Basic Head, Tip Jar, Multi-Signer, Pact, Custom Head) for immediate use or customization. Supports building custom Hydra Heads, configuring multi-party settings, and interacting via CLI or API. Allows exporting Heads to external environments for realistic Layer-2 testing. Reduces setup complexity so learners focus on DApp development rather than infrastructure.
2. Step-by-Step Workflow UI: Visual workflow guides users through every step of Hydra Head creation: participant selection → UTxO preparation → Head initialization → commit → open → send transactions → close. Real-time validation prevents missing data or incorrect steps. Public IP sandbox allows external testing. Shortens the learning curve, enabling hands-on experience without coding expertise.
3. AI-Powered Error Detection and Guidance: Monitors user actions and node/head logs to detect common mistakes. Provides step-by-step explanations, suggested commands, and optional auto-fixes with user confirmation. Reduces frustration, accelerates learning, and supports continuous skill development.
4. Reusable, Open-Source Templates and Resources: All templates, workflow engines, and guides are editable and open-source. Community contributions are supported for new templates, improved workflows, and extended AI rules. Creates sustainable learning resources with long-term impact, maximizing value for the ecosystem.
5. Accelerating Hydra Adoption and Ecosystem Growth: Equips developers with practical skills to deploy Hydra Heads and Layer-2 DApps. Supports rapid onboarding of new developers globally. Encourages creation of mini-DApps, smart contracts, and public resources.

Reason for Building

The Hydra Playground project addresses critical barriers in adopting Hydra Layer-2 on Cardano by providing an interactive, hands-on, AI-assisted learning and development platform.

1. Bridging the Gap Between Research and Real-World Application: Translates Hydra’s theoretical documentation into practical experience, enabling developers to experiment and deploy real Layer-2 DApps.
2. Empowering Global Blockchain Talent: Trains developers to build, deploy, and test Hydra Layer-2 DApps, strengthening the worldwide pool of skilled Hydra-capable developers.
3. Promoting Hydra Adoption and Layer-2 Growth: Ready-to-use templates, sandboxed testing environments, and AI guidance reduce the learning curve and accelerate real-world Hydra Head deployments.
4. Strengthening the Cardano Layer-2 Ecosystem: Practical tools and high-quality learning resources enable scalable and performant DApps, improving Cardano’s competitive advantage in Layer-2 solutions.
5. Building a Sustainable, Open-Source Developer Community: All templates, workflows, and AI-assisted tools are open-source, allowing the community to contribute, extend, and continuously improve the platform, ensuring long-term impact beyond the initial project.

Key Ecosystem Benefits

1. Addresses the global shortage of Hydra-skilled developers.
2. Provides practical, accessible resources for learning and deploying Layer-2 DApps.
3. Accelerates Hydra adoption via ready-to-use templates, visual workflows, and AI-assisted support.
4. Produces reusable, open-source learning assets that foster innovation and continuous ecosystem growth.

[Your Project and Solution] Impact

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

Positive Impact

The Hydra Playground – Codespaces, UI Guide and AI Assist System is designed to create a strong and lasting positive impact on the wider Cardano community by providing an interactive, practical, and AI-assisted environment for learning and developing Hydra Layer-2 applications. Its benefits go beyond tutorials, offering reusable resources, fostering a global developer community, and accelerating Hydra adoption across the ecosystem:

• Accessibility and Inclusive Learning: Developers worldwide can interact with cloud-based Codespaces, ready-to-use Hydra templates, step-by-step UI workflows, and AI-assisted guidance without complex local setup.
• Hands-On Learning: Users are guided from environment setup, node and head deployment, to smart contract integration, gaining immediate practical experience in Layer-2 development.
• AI-Powered Assistance: Integrated AI monitors workflows, analyzes node/head logs, detects mistakes, and provides real-time guidance, helping learners complete complex Layer-2 tasks efficiently.
• Open-Source and Community-Driven: All templates, workflows, and AI modules are fully open-source, enabling community contributions, improvements, and expansions.
• Accelerating Hydra Adoption: By equipping developers with practical skills and ready-to-use resources, the platform drives real Hydra Layer-2 DApp deployment on Cardano.

Immediate Quantitative Impact

The measurable impact of Hydra Playground can be demonstrated through direct user engagement and ecosystem contribution:

• Active Users: ≥30 developers interacting with Codespaces and UI workflows.
• Hydra Head Deployments: ≥50 Heads created and tested in sandboxed environments.
• Layer-2 DApps Deployed: ≥20 mini-DApps built using templates (Tip Jar, Multi-Signer, Pact, Poll, Custom Heads).
• Open-Source Contributions: ≥10 pull requests submitted by the community to improve templates, workflows, and AI modules.
• Workflow Completion Rate: ≥80% of users successfully complete full Hydra Head creation workflows without critical errors.
• User Confidence: ≥90% of users feel capable of deploying functional Hydra DApps after using the platform.

Benefits for Cardano

Hydra Playground provides multiple strategic benefits for the Cardano ecosystem:

• Expanding Hydra Layer-2 Developer Base: More developers gain practical experience building DApps.
• Accelerating Hydra Adoption: Ready-to-use templates, UI workflows, and AI assistance shorten the learning curve and increase Layer-2 deployment.
• Promoting Open-Source Knowledge: Templates, workflows, and AI modules are freely available for replication, adaptation, and community improvement.
• Encouraging Innovation and Diversity: Developers can create new DApp projects using pre-built templates.
• Strengthening Cardano’s Layer-2 Competitiveness: Supports development of scalable, high-performance applications for real-world use cases.
• Building a Sustainable Developer Community: Encourages collaboration, mentorship, and long-term contributions to Hydra development.

Project Results and Achievements Sharing Plan

Hydra Playground ensures transparency, accessibility, and long-term impact through:

• Public Resource Availability: All templates, UI workflows, and AI Assist modules are hosted on GitHub and the Hydra Playground website, accessible globally.
• Open-Source Learning Assets: Community members can download, modify, and extend templates and workflows.
• Transparent Reporting: Progress is tracked and reported via Statements of Milestones (SoM) and Proof of Achievement (PoA) for verification by the Cardano Catalyst community.
• Community Engagement: Updates, technical guides, and best practices shared on Cardano Forum, Discord, and Telegram.
• Encouraging Contributions: Developers can submit code, suggest new templates, or expand AI modules for continuous improvement.
• Long-Term Sustainability: All content is archived for ongoing use, improvement, and expansion, ensuring lasting benefits for Hydra Layer-2 adoption on 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?

The Hydra Playground project is designed and executed by a highly experienced team with a proven track record in building, deploying, and scaling Cardano DApps. We combine deep blockchain expertise, software development capabilities, AI integration experience, and strong project management skills to deliver a reliable, fully functional platform for learning and experimenting with Hydra Layer-2.

Team Skills and Expertise

• Blockchain and Hydra Experts: Our team includes developers, pool operators, and engineers with hands-on experience building Cardano DApps and Layer-2 solutions. We understand the architecture, protocols, and operational requirements of Hydra, ensuring that the Playground meets real-world developer needs.
• Catalyst Project Experience: We have successfully delivered multiple funded projects on Cardano Catalyst, demonstrating both technical execution and community impact. This includes NFT marketplaces, DeFi bots, token/NFT generators, and advanced Cardano courses.
• Educational Platform Development: We have built and maintained Cardano learning portals, such as C2VN LMS enabling us to structure complex content and deliver step-by-step learning experiences effectively.
• Cross-Disciplinary Expertise: The team’s skills cover frontend/backend development, API integration, AI-assisted systems, UI/UX design, DevOps (CI/CD), and containerized deployment critical for building the Hydra Playground.

Proven Track Record

We have successfully completed projects, each of which has been endorsed by the Cardano community:

• Vietnam Cardano Catalyst NFT Exchange – Provided a testing and development environment for NFT-based projects, helping newcomers explore Web3 and Cardano.
• Dualtarget Platform – A DeFi solution for ADA holders integrating staking and automated trading bots.
• Open-Source Dynamic Assets Generator (CIP68) – Tools for creating and managing Cardano tokens and NFTs efficiently.
• The Complete Aiken Course: Cardano from Zero to Expert – Comprehensive educational program for building smart contracts.

These projects demonstrate both technical feasibility and the ability to deliver functional, user-ready tools for the Cardano ecosystem.

Products and Tools

Our existing infrastructure and tools:

• Cardano2vn: https://cardano2vn.io
• LMS C2VN: https://lms.cardano2vn.io
• Cardano Tool: https://cardano-tool.vercel.app
• Demarket: https://demarket-frontend.vercel.app
• Dualtarget: https://dualtarget.duckdns.org
• CIP68Generator: https://cip68.cardano2vn.io

Project Management Capabilities

Our team excels in:

• Strategic Planning & Execution: Breaking down complex milestones (Codespaces, Templates, UI workflows, AI integration) into actionable tasks with clear deliverables.
• Budget & Risk Management: Allocating resources effectively, mitigating potential technical or operational risks, and ensuring cost-efficient delivery.
• Stakeholder Communication: Transparent updates to funders, community participants, and collaborators at every stage.
• Timeline Management: Delivering milestones on schedule while maintaining quality and community engagement.

Financial Management & Transparency

• Detailed Budget Planning: Each ADA is allocated to development, documentation, AI integration, testing, and deployment to maximize ecosystem impact.
• Transparent Cost Tracking: All expenditures are recorded and auditable, aligned with Catalyst funding expectations.
• Regular Reporting: We will provide Statements of Milestones (SoM) and Proof of Achievement (PoA) at each stage to validate outputs and ensure accountability.
• Cost Efficiency: With an estimated rate of 60 ADA/hour, every hour of work directly produces developer-ready templates, AI modules, and open-source resources, ensuring maximal return on investment for the Cardano ecosystem.

Feasibility Validation

• We intend to validate our approach using a combination of technical, community, and iterative testing methods:
• Prototype Testing – Deploy initial Hydra Playground modules on Cardano testnet to confirm functionality of Codespaces, templates, and AI guidance.
• Step-by-Step Workflow Validation – Test each UI-guided process for creating Hydra Heads and executing transactions to ensure accessibility for beginners.
• Community Feedback – Engage early adopters and developers to collect usage data, identify bottlenecks, and refine features.
• AI Accuracy Assessment – Evaluate AI suggestions and auto-fix recommendations to ensure correct error detection and learning guidance.
• Open-Source Audit – Ensure all templates, code, and documentation are fully reusable, maintainable, and secure, meeting industry standards.

[Milestones] Project Milestones

Milestone Title

Project Setup, Codespaces & Hydra Playground Design

Milestone Outputs

• Completed technical architecture documentation and developer setup guide.
• Functional frontend prototype integrated with backend foundation.
• Containerized environment capable of running Hydra Node and Hydra Head.
• Established Git repository with CI/CD pipeline for automated deployment.
• Implemented backend foundation for Hydra Playground (API, WebSocket layer).
• Project management (organizing, and controlling resources, tasks)

Acceptance Criteria

• Developers can install and run the environment using the provided setup guide.
• Containerized Hydra Node/Head starts successfully via the Playground backend.
• Frontend communicates with backend without breaking flow.
• CI/CD pipeline deploys builds automatically to a staging environment.
• All components pass initial end-to-end smoke tests.
• Reviewing all pendings and planning, assigning tasks to members, Resolve roadblocks if any.

Evidence of Completion

• Architecture diagrams and documentation stored in the GitHub repository.
• Running Hydra Node/Head demo accessible via staging deployment.
• CI/CD logs showing successful automated pipeline runs.
• Backend + frontend integration demo video.
• Public GitHub commits showing completed setup and implementation.
• A copy of meeting minutes uploaded to github

Delivery Month

2

Cost

17160

Progress

20 %

Milestone Title

Deployment of Hydra Templates, Node and Head Systems (Month 2–3)

Milestone Outputs

• Delivery of 3 Hydra templates: Basic Head, Pact Head, Tip-Jar Head, Poll Head.
• Template selection module with “Build from Scratch” option.
• Fully functional CLI and API for node/head interaction.
• Comprehensive logging system for node/head activity with UI log viewer.
• Documentation for using and extending all Hydra templates.
• Project management (organizing, and controlling resources, tasks).

Acceptance Criteria

• Users can instantiate any template and run Hydra Node/Head successfully.
• CLI/API commands function correctly (init, commit, open, close, tx).
• Node/head logs appear in real time inside the UI logging panel.
• “Build from Scratch” starts with an empty config that users can edit.
• Documentation covers templates, commands, and troubleshooting.
• Reviewing all pendings and planning, assigning tasks to members, Resolve roadblocks if any.

Evidence of Completion

• Live demo video showing each template being deployed and executed.
• CLI/API test logs verifying correct Hydra protocol interactions.
• Log viewer interface demonstration with real-time output.
• Documentation hosted in GitHub Pages or README with examples.
• Template configuration files stored in the repository.
• A copy of meeting minutes uploaded to github.

Delivery Month

2

Cost

22200

Progress

40 %

Milestone Title

Step-by-Step Workflow UI for Hydra Head Creation

Milestone Outputs

• Fully interactive UI guiding users through Hydra Head creation.
• Complete workflow: participant selection → UTxO prep → init → commit → open → tx → close → fanout.
• Public IP sandbox for external testing of transactions.
• Basic validation preventing incorrect steps or missing fields.
• Beginner-friendly documentation for completing the workflow.
• Project management (organizing, and controlling resources, tasks).

Acceptance Criteria

• Users can create a Hydra Head end-to-end without writing code.
• UI blocks invalid actions (e.g., commit before open).
• UI sends correct RPC calls to the Hydra backend.
• Public sandbox head is accessible externally and responds to tx requests.
• Documentation covers each step with screenshots and common issues.
• Reviewing all pendings and planning, assigning tasks to members, Resolve roadblocks if any.

Evidence of Completion

• Public demo link of the workflow UI.
• Recorded video showing full workflow from start to close.
• RPC logs proving correct interaction with Hydra protocol.
• Documentation uploaded to repository or project website.
• Sample test results from sandbox head transactions.
• A copy of meeting minutes uploaded to github.

Delivery Month

2

Cost

24000

Progress

60 %

Milestone Title

Integration of AI Assist System for Error Detection.

Milestone Outputs

• AI system monitoring user actions in Codespaces and Workflow UI.
• Log analysis engine detecting Hydra error patterns from node/head logs.
• AI chatbox providing explanations, suggestions, and fixes.
• Auto-suggest and optional auto-fix mechanism requiring user confirmation.
• Documentation of AI workflows, supported errors, and use cases.
• Project management (organizing, and controlling resources, tasks).

Acceptance Criteria

• AI can detect at least 20 common Hydra misconfigurations or errors.
• Chatbox returns clear explanations and step-by-step fixes.
• AI highlights incorrect config/code lines in the editor.
• Auto-fix updates project files correctly with user confirmation.
• Documentation includes examples and supported error categories.
• Reviewing all pendings and planning, assigning tasks to members, Resolve roadblocks if any.

Evidence of Completion

• Demonstration video of AI detecting errors and fixing them.
• Dataset of detected error types with explanation samples.
• AI chat logs showing user interactions and corrections.
• Code commits showing AI integration into the system.
• Documentation describing AI architecture and capabilities.
• A copy of meeting minutes uploaded to github.

Delivery Month

3

Cost

27000

Progress

80 %

Milestone Title

Prototype Launch, Community Testing and Feedback

Milestone Outputs

• Fully deployed Hydra Playground prototype on public Cardano testnet.
• Fully integrated environment combining Codespaces, UI workflow, and AI Assist.
• Built-in feedback system (survey, logs, user issue reporting).
• Stress testing + performance benchmarking (throughput, latency).
• Final Project Close-Out Report and Project Close-Out Video.
• Project management (organizing, and controlling resources, tasks).

Acceptance Criteria

• Public users can access the prototype and deploy Hydra Heads.
• All three systems (Codespaces, Workflow UI, AI) operate seamlessly together.
• Feedback system successfully records and stores user input.
• Stress test results meet minimum performance benchmarks.
• Project Close-Out Report – Completed in PDF format, including project objectives, outcomes, metrics, and lessons learned; reviewed and approved by project lead.
• Reviewing all pendings and planning, assigning tasks to members, Resolve roadblocks if any.

Evidence of Completion

• Public testnet URL of the Hydra Playground.
• Logs/screenshots of community interactions and feedback submitted.
• Stress test report including TPS/latency metrics.
• A copy of the Project Close-Out Report will be published on public Google Drive
• Final demonstration video submitted.
• A copy of meeting minutes uploaded to github.

Delivery Month

2

Cost

16800

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

1- Project Overview

• Total Budget: 107,160₳.
• Duration: 10 months - 5 milestones.
• Team size: 5 people.

2- Milestone by Milestone Cose Analysis

Milestone 1: Project Setup, Codespaces & Hydra Playground Design (Month 1–2)

• Total Cost: 17,160 ₳ (16.01%).
• Team: 5 people.
• Key Deliverables: (Architecture documentation and setup guide completed. Frontend implementation and integration with backend. Containerized environment capable of running Hydra Node and Head. Git repository with CI/CD pipeline. Backend implementation for Hydra Playground. Project management and coordination.)

Milestone 2: Deployment of Hydra Templates, Node and Head Systems (Month 3–4)

• Total Cost: 22,200 ₳ (20.72%)
• Team: 5 people.
• Key Deliverables: Delivery of 3 Hydra templates: basic head, pact, tip-jar, poll. Template selection or "build from scratch" option. Functional CLI and API for Node/Head interaction. Logging system for tracking Node/Head activity. Documentation for all Hydra templates. Project management and coordination.

Milestone 3: Step-by-Step Workflow UI for Hydra Head Creation (Month 5–6)

• Total Cost: 24,000 ₳ (22.40%)
• Team: 5 people.
• Key Deliverables: Interactive UI guiding users step-by-step through Hydra Head creation. Full workflow: participant selection → UTxO preparation → init → commit → open → transaction sending → close.Public IP sandbox for external transaction testing. Basic UI validation for incorrect steps or missing data. Beginner documentation for workflow completion. Project management and coordination.

Milestone 4: Integration of AI Assist System for Error Detection (Month 7–8)

• Total Cost: 27,000 ₳ (25.20%).
• Team: 5 people.
• Key Deliverables: AI system monitoring user actions in Codespaces and UI. AI engine analyzing Hydra Node/Head logs for error patterns. AI chatbox providing explanations, corrections, and suggestions. Auto-suggest and optional auto-fix features with user confirmation. Documentation of AI workflow and supported use cases. Project management and coordination.

Milestone 5: Prototype Launch with Community Testing and Feedback (Month 9–10)

• Total Cost: 16,800 ₳ (15.68%)
• Team: 5 people.
• Key Deliverables: Fully deployed Hydra Playground prototype on public Cardano testnet. Integrated environment where Codespaces, UI workflow, and AI support operate together. Built-in feedback system for collecting user insights. Stress testing and performance benchmarking (throughput, latency). Project Close-Out Report and Video. Project management and coordination.

3- Budget Breakdown by Category

Development (Frontend + Backend + Blockchain + AI) - 84,620 ₳ (88.3%)

Covers all technical work required to build the Hydra Playground: UI/UX development for the step-by-step Hydra workflow, backend services, implementation of Hydra Node/Head modules, development of interactive templates (basic head, pact, tip-jar, poll), creation of the AI Assist system (error detection, log analysis, auto-fix suggestions), CI/CD integration, containerized Codespaces setup, performance optimization, and overall platform engineering. This category represents the core technical workload and therefore accounts for the largest share of the budget.

Documentation & Tutorials - 11,400 ₳ (10.6%)

Includes all written and visual learning materials: architecture documentation, setup guides, Codespaces instructions, step-by-step Hydra workflow tutorials (init → commit → open → close), template usage documentation, AI Assist user manual, and final project close-out materials such as summary reports and video walkthroughs. These resources ensure accessibility and usability for both developers and new learners.

Project Management - 11,140 ₳ (10.1%)

Covers coordination and oversight across the 10-month project: milestone tracking, progress reporting, QA supervision, risk management, team communication, community engagement, AMA sessions, user feedback collection, and ensuring deliverables are completed on time and aligned with the project scope. This category ensures smooth execution and high-quality outcomes across all milestones.

4- Project budget details here

https://docs.google.com/spreadsheets/d/1h_c9I4xaEGVaisO6ebYFrlAIVwWSAfmNc_IYi6AP6nY/edit?gid=0#gid=0

[Final Pitch] Value for Money

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

The Hydra Playground delivers exceptional value for the cost by directly addressing one of Cardano’s most urgent needs: practical, accessible, and developer-ready tooling for Layer-2 Hydra. Every ADA spent accelerates the creation of real Hydra-capable builders, improves developer productivity, and expands the ecosystem’s capacity to build scalable DApps.

1- High ROI for the Cardano ecosystem through developer enablement

The budget is allocated toward building an end-to-end practical environment: Codespaces, interactive templates, step-by-step workflows, and AI guidance, that dramatically reduces the barrier to building Hydra applications. Instead of theoretical documents, the community receives a fully functional, ready-to-use development suite. This creates a long-term multiplier effect: once developers learn Hydra through the Playground, they can continue building scalable DApps long after the project concludes.

2- Direct investment into Hydra adoption and Layer-2 growth

Hydra is essential for Cardano’s scaling roadmap, yet adoption has been slow due to limited documentation and lack of hands-on tools. This project solves that gap by providing:

• Practical templates for real DApps (tip-jar, poll system, pact system, etc.)
• A visual workflow that teaches Hydra step-by-step.
• An AI assistant that reduces learning friction.

Each feature drastically shortens the learning curve and increases Hydra head deployments across the ecosystem. Every ADA spent directly accelerates Hydra adoption.

3- Cost-effective production of reusable ecosystem assets

The result is not a one-time training but a reusable, open-source platform with:

• Editable templates
• Public documentation
• A no-code Hydra workflow engine
• AI support for ongoing developer assistance

These assets will continue to educate, support, and empower developers indefinitely, making the budget extremely cost-effective compared to workshops or one-time training initiatives.

4- Sustainability through community reuse, contributions, and scalability

Because the Hydra Playground is fully open-source, the community can:

• Contribute new templates
• Improve workflows
• Localize documentation
• Extend AI rules and error-detection models

This creates ongoing contributions without additional Catalyst funding, enabling a sustainable developer ecosystem around Hydra.

5- Transparent, efficient use of funds with minimal overhead

The budget is directly tied to development output: architecture, backend, frontend, Hydra engine integration, AI logic, testing, deployment, and documentation. There are no unnecessary administrative or overhead expenses.

The entire cost is allocated to productive technical work that produces tangible, open-source deliverables for the Cardano ecosystem.

Detailed Budget Planning: Each ADA is allocated to development, documentation, AI integration, testing, and deployment to maximize ecosystem impact.

Transparent Cost Tracking: All expenditures are recorded and auditable, aligned with Catalyst funding expectations.

Regular Reporting: We will provide Statements of Milestones (SoM) and Proof of Achievement (PoA) at each stage to validate outputs and ensure accountability.

Cost Efficiency: With an estimated rate of 60 ADA/hour, every hour of work directly produces developer-ready templates, AI modules, and open-source resources, ensuring maximal return on investment for the 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