Last updated 3 weeks ago
Cardano's DeFi liquidity fragmentation causes high slippage and hidden risk for LPs. Protocols are unable to manage crises. TVL often collapses unpredictably. Cascade failures stop ecosystem adoption.
A modular real-time liquidity health monitoring layer with public panels that detects depth depletion, routes swaps intelligently, and activates countermeasures in advance to prevent cascading crises.
Please provide your proposal title
LiquiZone: The Liquidity Health Layer Cardano DeFi Needs.
Enter the amount of funding you are requesting in ADA
200000
Please specify how many months you expect your project to last
10
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Cardano's DeFi liquidity fragmentation causes high slippage and hidden risk for LPs. Protocols are unable to manage crises. TVL often collapses unpredictably. Cascade failures stop ecosystem adoption.
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?
No
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.
LiquiZone's core technology, innovations and methodologies are protected intellectual property. The public panel with pool health data (200+ pools at MVP. 1400+ by month 6) will be offered for free to the Cardano Community. The Swap Routing Optimization service for slippage savings and MEV protection will be available for a small fee. Protocol's Panels and countermeasures will be licensed to protocols, ensuring sustainable development and profitability while maximizing ecosystem benefit.
Please choose the most relevant theme and tag related to the outcomes of your proposal
Infrastructure
Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).
LiquiZone introduces a unified liquidity health layer that makes pool health visible, predictable, and actionable across Cardano DeFi.
Today's reality:
LiquiZone introduces: A standardized, real-time liquidity intelligence framework accessible across all Cardano DeFi protocols, DEXs, lending systems, and AMMs.
Impact: Creates ecosystem-wide transparency and clarity. Enables cross-protocol coordination for the first time.
Today's reality:
LiquiZone introduces: Predictive intelligence with the ability to detect depletion signals hours or even days before crises cascade, providing protocols with advance warning to activate preventive measures.
Impact: Detect crises building up to enable prevention instead of just reacting when the damage has been done. Gives protocols time to coordinate response before contagion spreads. Prevention with LiquiZone becomes a possibility.
Today's reality:
LiquiZone introduces: Activation of protocol-defined responses enabling ecosystem stabilization when crises warnings are detected.
Impact: Transforms monitoring from passive reporting into active ecosystem stabilization.
No equivalent exists:
Ethereum has aggregators (not crisis prevention).
Solana has MEV solutions (not liquidity health).
LiquiZone is first-mover infrastructure for Cardano providing:
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
LiquiZone will prove that Cardano DeFi can be:
LiquiZone will demonstrate that high slippage, liquidity crises, and extreme price collapses are not inherent DeFi problems, they are preventable with proper infrastructure.
Describe realistic measures of success, ideally with on-chain metrics.
Please describe your proposed solution and how it addresses the problem
Cardano DeFi faces a transparency and reliability crisis that prevents the ecosystem growth and adoption.
The Cardano’s DeFi ecosystem is constrained by operational reliability. Institutions cannot allocate capital where liquidity are treated as inevitable market dynamics rather than preventable infrastructure failures.
When a pool enters crisis without advance warning:
The crypto market experienced a cascade failure triggered by macroeconomic shocks (US trade war tariffs). In just 12 hours, over $2 billion in liquidations occurred. Cardano (ADA) dropped 21%, Ethereum plunged 27% in a flash crash before partially recovering, and altcoins suffered severe losses. The underlying issue: liquidity fragmentation meant no advance warning systems existed to detect pool degradation before panic selling cascaded across protocols.
Following broader market stress from geopolitical developments, ADA crashed from the $0.82 region as whales dumped 350 million ADA in coordinated selling. The lack of real-time pool health monitoring meant traders, LPs, and protocols had no advance visibility into the liquidity exodus building hours before the price collapsed to $0.27 in some pools even lower. Without early-warning systems, countermeasures (LP incentives, treasury injection, governance alerts) could not activate in time to prevent the cascade.
Real-Time Liquidity Transparency for the whole community.
Standard classification system universal across all Cardano pools, replaces scattered individual monitoring efforts, and provides every trader, protocol founder, and LP with the same ground truth.
Crisis Prevention Capability (4-24 Hour Advance Warning).
Counter-measures (LP incentives, treasury injection, routing adjustment) activate before crisis manifests
Capital Preservation Through Intelligent Routing (Substantial Slippage Reduction).Ecosystem Impact: Millions in community capital preserved annually through reduced slippage.
Standardized Infrastructure (Network Effect)
A clean dashboard that shows you exactly which pools are healthy, which are degrading, and which need caution.
What traders see:
While traders need visibility and the Swap Route Optimizer, DeFi projects need intelligence, control, prevention and mitigation . The Protocol Admin Dashboard gives project what they need to prevent crises before they cascade.
What protocols see:
Countermeasure activation framework:
Problem 1: Fragmented Liquidity Visibility
Problem 2: Cascading Crises
Problem 3: Predatory Exploitation
Problem 4: Trader Losses from Slippage
Problem 5: Project Failure from Liquidity Collapse
Please define the positive impact your project will have on the wider Cardano community
Result: Millions in capital preservation
Result: Higher protocols survive rate
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?
LiquiZone has pre-selected Sotatek a leading blockchain development agency with a high degree of specialisation on Cardano infrastructure and DeFi systems.
Before committing to this proposal, a comprehensive technical feasibility assessment was conducted, including:
To ensure delivery and community trust:
Milestone Title
Foundation & Architecture
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
2
Cost
20000
Milestone Title
Core Backend Development
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
4
Cost
45000
Milestone Title
Smart Contracts & Public Dashboard
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
6
Cost
50000
Milestone Title
Protocol Admin Dashboard & Integration Testing
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
8
Cost
30000
Milestone Title
Revenue Dashboard, Security & Hardening
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
9
Cost
25000
Milestone Title
Mainnet Readiness & Launch
Milestone Outputs
Acceptance Criteria
Evidence of Completion
Delivery Month
10
Cost
30000
Please provide a cost breakdown of the proposed work and resources
We obtained detailed quotations from specialized Cardano development agencies. Development proposals range from $70,000 to $100,000 USD depending on scope, timeline, and quality standards. Our 200,000 ADA budget is in line with the quotations received as far as ADA price holds. We are confident that our structured 6-Milestone approach of 10 months with clear deliverables, testing gates, and security audits, will deliver the production grade liquidity infrastructure the Cardano DeFi ecosystem requires.
LiquiZone is an strategic, focused investment to solve one of the most critical problems constraining DeFi growth, the liquidity visibility and crisis prevention gap. While ambitious in scope and technical complexity, this budget demonstrates disciplined resource allocation.
The cost allocation reflects disciplined investment in the highest-value components:
Backend development, smart contracts, and API infrastructure represent the technical foundation. This substantial allocation ensures LiquiZone's core intelligence engine is built to production-grade standards with security, performance, and reliability baked in from the beginning, not retrofitted later.
Public dashboard and protocol admin dashboard allocations ensure end-users (traders, protocols, LPs) can access LiquiZone's innovations through intuitive, real-time interfaces. Without this investment, LiquiZone's technical excellence would remain hidden from users who need it most.
Testing, security audits, performance optimization, monitoring systems, and documentation. This allocation reflects the reality that enterprise-grade infrastructure requires rigorous quality gates, not rushed deployment followed by crisis management.
CI/CD, testnet environment, mainnet deployment preparation, and go-live support. These enable efficient execution across all other development phases.
This investment delivers:
How does the cost of the project represent value for the Cardano ecosystem?
1. Solves the Biggest Unsolved Problem
Of all constraints limiting Cardano DeFi growth, the liquidity visibility and crisis prevention gap is the most fundamental:
2. Creates Network Effects
As more projects adpot LiquiZone and we integrate with more DEXs:
3. Differentiates Cardano Competitively
Nothing equivalent exists anywhere:
LiquiZone is the first-mover infrastructure advantage. Once deployed on Cardano, it becomes the DeFi standard. Replication on other chains is theoretically possible but architecturally complex.
Cardano achieves institutional-grade differentiation that translates to market share and adoption.
4. Foundation for Innovation
5. User Confidence & Adoption
6. Institutional Access
7. Protocol Quality Improvement
8. Long-Term Ecosystem Health
LiquiZone enables an ecosystem transformation that provides:
LiquiZone is the infrastructure layer Cardano DeFi needs to succeed.
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
With 20 years of expertise in technology sales, channel development, and territory expansion, Santiago brings strategic vision execution and business development acumen to LiquiZone. His experience spans alliance building, partnership development, and go-to-market strategy deployment across enterprise environments.
Santiago has built and nurtured during his career relationships with System Integrators, Development Agencies, VARs and Technology Consultants and has the experience on how innovation ecosystems work and how to deliver complex projects to fruition.
Additionally Santiago has been a technical trader and market analyst for 8 years from with more than 6 years trading and studying cryptos. Santiago understands in depth:
As the visionary driving LiquiZone's creation, Santiago is responsible for overall project direction, strategic partnerships, and ensuring seamless coordination between technical development and community engagement initiatives. His track record demonstrates the ability to scale complex technology initiatives from concept to market-ready platforms.
LinkedIn: https://www.linkedin.com/in/santiagoblasco/
Andreea brings 10+ years of operational excellence from high-pressure, mission-critical environments including roles as Financial Ombudsman and Ground Operations Manager at Heathrow for United Airlines. Her background in complex process management, quality control, and multi-stakeholder coordination directly translates to managing LiquiZone's ambitious ten-month development timeline and delivery requirements. Andreea ensures daily operations flow smoothly, maintains execution standards, manages internal communications across distributed teams, and serves as the critical quality control checkpoint ensuring all deliverables meet technical and community specifications. Her experience brings essential discipline to the project's delivery framework.
Sotatek Hanoi, has been pre-selected as LiquiZone's primary development partner based on their demonstrable expertise in Cardano infrastructure, proven blockchain development track record, and commitment to quality and innovation.
Bryan leads Sotatek's Web3 Division and brings strategic oversight of blockchain development initiatives. His role encompasses technology strategy, architecture validation, and ensuring alignment between project requirements and Sotatek's technical execution framework. Bryan's division leadership ensures LiquiZone receives enterprise-grade development practices and senior-level technical governance throughout the project lifecycle.
LinkedIn: https://www.linkedin.com/in/bryan-du-6aab2715a/
As Head of Blockchain Division, Carter oversees all Cardano-focused development initiatives and smart contract deployment strategies. With specialized expertise in Plutus and Aiken smart contract languages, Carter is the principal architect for LiquiZone's on-chain components and ensures technical decisions align with Cardano's design principles and security best practices. His division manages the blockchain engineering teams responsible for delivering the core protocol layer.
LinkedIn: https://www.linkedin.com/in/dao-van-thuong-64477ba0/
The Sotatek team dedicated to LiquiZone comprises:
Blockchain Engineers | Smart Contract Developers | Full-Stack Engineers | Backend Developers | Frontend Developers |DevOps Engineers | Quality Control Engineers| Business Analyst | Project Manager
LiquiZone remains fully independent as the sole owner of all intellectual property, code, and methodologies developed throughout this project. While Sotatek provides essential development services, all deliverables, smart contracts, infrastructure code, and system designs are the exclusive intellectual property of LiquiZone. This ensures complete strategic independence and full control over the platform's evolution, future deployment decisions, and commercial partnerships.
The modular architecture of LiquiZone's components further ensures that individual elements (Liquidity Health Monitoring Layer, Swap Routing Optimization, admin panel, public dashboard) can be evolved, improved, or redeployed independently, protecting the project's ability to iterate rapidly based on community feedback and market developments.