Open Source Fungify

[IMPACT]

The Cardano ecosystem is sparse with dApps, largely due to limited dev tooling and example code. SundaeSwap and other DEXs worked tirelessly to produce performant contracts but have kept their contracts closed source to ensure they realize the fruits of their labor. The ability to keep contracts closed source, which is not an option on Ethereum, will stifle further ecosystem growth if this practice becomes the norm. Working from examples is massively important in the development process. The open sourcing of complete dApps will be a catalyst for exponentially accelerating developer activity on Cardano.

The first open sourced Plutus code will likely be used by many others as the basis for their projects so it’s crucial it’s of high quality and audited. In the early days of computer programming there was a book that contained the only example for creating a windows driver. The sample code snippet was directly copied by every developer but it had a critical bug that caused major outages.

Fungify is an NFT-FT pooling protocol, akin to NFTX on Ethereum, with multiple intricate and optimized contracts. There are contracts for the NFT-FT exchange protocol, an emission redirector, and a fee farm. Fungify, a homegrown project developed throughout the past year, is one of the most advanced dApps currently being built on Cardano - all without VC funding. It would be massively beneficial for the ecosystem if the code was made open source, but we don’t feel comfortable making the code publicly available until it’s been thoroughly tested and audited. This proposal is for funding a third-party audit and a bug bounty program so we can confidently open source the Fungify contracts.

The price of a full security audit is determined on a case by case basis, based on the size and complexity of the code. We estimate that a comprehensive security audit will cost around $50k. The funds remaining after the audit, which we expect to be around $25k, will be used to launch an initial whitehat bug bounty program. 

To learn more about Fungify, check out our docs: https://sicks0sicks.gitbook.io/fungify/

To keep track of progress and participate in the discussion, hop into our discord: https://discord.gg/78grvnM4na

Open sourcing Fungify will provide a foundation for plutus developers to build upon. The high quality and audited dApp code can be used as scaffolding for other developers to kickstart their projects. The knowledge acquired in building a performant protocol on the eUTxO model will be shared. Open source code is under appreciated in accelerating developer activity on a chain and we believe this to be a catalyst for growth in the coming months.

The first open sourced code on Cardano is likely to be copied and built upon by many, if there’s a bug in the base open source code this could be a systematic danger. We believe heavily testing the code, acquiring a comprehensive security audit, as well as a whitehat bounty program, will minimize this risk. This stringent approach to security will not only ensure the safety of the Fungify protocol, but countless dApps that will be built using our code base as a reference.

[FEASIBILITY]

In the next 0-3 Months

• Fungify V1 testnet
• Extensive tests written
• Code audit started

In the next 3-6 Months

• Code audit completed
• Fungify V1 launch
• Supporting documentation written
• Contracts are open sourced

Audit = $50k

Bug Bounty = $25k

Total = $75k

Ben - Co-founder Fungify, Haskell Dev, First Cohort Plutus Pioneer

Chris - Co-founder Fungify, Haskell Dev, First Cohort Plutus Pioneer

First Cohort Plutus Pioneer Program class photos:

https://pool.pm/asset1yvdd8q7pw0jt5tfj00zuddmxvy44fzcfqzms5n

https://pool.pm/asset124yw3yvrty84wmxcvcp6lfkj2056hl7at0pzql

[AUDITABILITY]

Progress of open sourcing Fungify can be measured through the number of forks and clones of the open source repo. 

Progress of Fungify development can be measured through routine updates and the expansion of Fungify NFT-FT pools.

The success of open sourcing Fungify will include accelerated developer activity on Cardano and the spread of best practices being implemented by new projects. It would be a success if at least 3 projects are able to use our open source code as a starting point and 0 vulnerabilities are exploited.

The success of the Fungify protocol will include increased liquidity and yield for NFTs on Cardano. The success of the Fungify protocol can be measured through the yield generated for liquidity providers - yield is a direct correlation to the sustainability of pools.

We we're funded in the previous Fund 7 to seed initial liquidity pools: https://cardano.ideascale.com/c/idea/384377