Liquidity Aggregator for Cardano

[IMPACT]

Plan in Detail:

If growth in DeFi has so far proved to be the key to success on any blockchain, then DEXs would be the fundamental vehicles, while liquidity would be the fuel, and aggregation is the glue tying it all together.

In order to jump-start the overall DeFi growth of the entire Cardano ecosystem, it will be crucial to have all these elements present and functioning in a holistic manner.

Otherwise, Cardano risks falling further behind despite its large market cap, as other chains become more well-rounded and interoperable.

Simply put, another Uniswap clone or stand-alone DEX will not be enough to keep Cardano relevant in the DeFi race amid all the daily innovations happening across the space.

What Cardano needs is something that will put it on the map and place it head and shoulders above any other products in the marketplace.

Smartdex 2.0 is that product.

It has several innovative core functions: liquidity aggregation, cross-chain bridge aggregation, smartpools, adding together to provide one of the most comprehensive experiences among DEXs in the DeFi industry.

Our 0x protocol infrastructure will allow us to scale the Cardano ecosystem with an off-chain trading and on-chain settlement system.

Meanwhile, an instant bridge enables seamless asset transfer across multiple blockchains, which Cardano is being integrated into as we speak.

Smart pools on Smartdex 2.0 provide an intelligent risk-adjusted way to invest through AI agents to generate sustainable yields. A staking contract for single-asset Cardano vaults is already in the works and nearly ready to be utilized as a smartpool.

Further down the line, a liquidity super mesh dealing with overall cross-chain liquidity aggregation will let Smartdex 2.0 become the focal point of all assets flowing in and out of the Cardano ecosystem.

DEXs and Lending/Borrowing protocols are the keys to a growth of a blockchain ecosystem and having a Liquidity Aggregator is an important and necessary layer on top of existing DEXs to support users in getting the best price and output amount for their desired token swap. Yield aggregation and Liquidity Farming are also important factors in the growth of an ecosystem and as the Cardano ecosystem is very early at this time it lacks some of the key platforms that are necessary in order for users to stick with or move to the Cardano network. 

DEX aggregators on other networks are built in a way that it is not easy to scale them to other non EVM chains, but we have designed and are currently building our aggregator to solve the scalability challenges. We have developed our liquidity aggregation system in a way that is scalable and expandable to any chain or network and to support any DEX while only requiring on-chain data such as available pairs, tokens, and reserves, all of which are stored in our database from where it performs the calculations using the integration of their invariant equation. The calculations to find the best route based on the least price impact takes place off-chain. We will require close collaboration with the DEXs that we will support in our aggregator and will most likely have partnerships with them to engage in cross-marketing activities when we launch our aggregator solution.

Main challenges:

• Create Plutus-based contracts, creating a staking contract that has on-chain rewards calculation and validation of the staked amount of users.

• Create an Aggregator contract that overcomes the underlying issue of inconsistency faced by several DEXs on AMMs

• To formulate the solution for the consumption of UTXOs from multiple AMM contracts in a single transaction. 

[ Note: We are already working on addressing these issues. ]

[FEASIBILITY]

Quarter 1 2022 [ Already achieved milestones]

• Launch of Cardano bridge on testnet.
• Launch of staking contract on testnet.

Link to bridge and staking contract: https://cardano-bridge.autonio.io/

Quarter 2 2022:

• Mainnet launch of Token Bridge
• Mainnet launch of single asset smartpool
• Partnerships with Sundaeswap and Mirqur.

Quarter 3 2022:

• Integrate Cardano based AMMs into Pool explorer service to collect on-chain data for liquidity aggregation
• Integrate Cardano based AMMs into Aggregator service
• Create a global token list for Cardano based tokens
• Create plutus based Aggregator contracts to route user orders into several DEXs
• Conduct security audit of Aggregator contracts
• Integrate Yoroi and Nami wallet into Smartdex
• Integrate the top AMMs on Cardano such as Sundaeswap, Mirpur, adaswap, and others. 

Quarter 4 2022:

• Deploy contracts on mainnet
• Integrate Aggregator API on Smartdex
• Launch liquidity aggregation on Cardano

We require a total of $76,440 to build our product, which will be used to cover the salaries of the developers, managers, and paying contract auditors:

• Write Token bridge contract in solidity.............................................................................................40hrs
• Write Token Bridge plutus script.......................................................................................................56hrs
• Write Staking Plutus script.................................................................................................................56hrs
• Create Cardano GraphQL for historical data collection..................................................................160hrs
• Integrate GraphQL solution into Pool explorer service for data collection.....................................64hrs
• Extend token list to support Cardano network tokens.....................................................................40hrs
• Implement event listeners on Sundaeswap pairs..............................................................................32hrs
• Implement event listeners on Mirqur and Minswap pairs............................................................... .40hrs
• Audit preparations – refactoring, refining......................................................................................... 40hrs
• Create Aggregator Router plutus script.............................................................................................56hrs
• Create Aggregator AMM interface plutus script for each supported AMM................................... 32hrs
• Integrate Yoroi wallet........................................................................................................................... 40hrs
• Integrate Nami wallet........................................................................................................................... 40hrs
• Mainnet contracts deployment.............................................................................................................8hrs
• Extend Aggregator API to support Cardano.......................................................................................32hrs
• Integrate Aggregator API on Smartdex interface...............................................................................32hrs

Total Developer hours: 768 hours

• Total Developer cost: 61440
• Security Audit cost: 10000
• Design: 5000

Total budget: 76440

Autonio Foundation is a decentralized autonomous organization built around developing accessible, easy-to-use, and affordable trading tools. These tools make it easier for crypto traders to conduct trading analysis, deploy trading algorithms, exchange cryptocurrencies, sell their strategies.

Website: www.autonio.foundation

we have successfully launched three products for the crypto ecosystem.

1. Smartdex [ www.smartdex.app ]
2. NIOX maker [ https://www.maker.autonio.foundation]
3. NIOX swarm [ https://www.swarm.autonio.io ]

Team member information:

Gergely Hegyközi [ Head of development ]

LinkedIn: https://www.linkedin.com/in/gergely-hegyközi-79114767/

Ikram Ansari [ Head of products ]

Linkedin: https://www.linkedin.com/in/ikram-ansari-a9683214a/

Rajat lonare [ Product manager]

Linkedin: https://www.linkedin.com/in/rajat-lonare-810770168/

Vadiraj kulkarni [Developer]

Linkedin: https://www.linkedin.com/in/vadiraj-kulkarni

[AUDITABILITY]

3 Months

• Deploy NIOX token contract on Cardano Mainnet
• Launch NIOX token bridge with the support of Ethereum, Polygon, and Cardano
• Creation of a Single Asset Smartpool contract with rewards calculation and staked amount validation
• Launch NIOX single asset Smartpool
• Integrate token bridge and Smartpool in Smartdex
• Partner with 5 Cardano based projects for liquidity aggregation such as Sundaeswap and Mirqur

6 Months

• Create NIOX-ADA pool on Sundaeswap
• Integrate NIOX-ADA pool on Smartdex invest section
• Start on-chain data collection from Cardano based AMMs
• Create a global token list for Cardano based tokens
• 
  

9 Months

• Deploy Aggregator contracts on Cardano
• Integration of most of the DEXs on the Cardano ecosystem

Expected product public launch date:

• Testnet Beta: Sep 20th, 2022

• Mainnet Beta: Nov 20th, 2022

This proposal is a continuation of the previous proposal. Here is the link to our previous proposal posted: https://cardano.ideascale.com/c/idea/384922