Please describe your proposed solution.

We have a goal of facilitating atomic swaps between Cardano and other blockchains using a protocol that combines signatures and timelocks. Here's an illustration: Alice wants to purchase 1,000 ADA with 1 ETH. Instead of relying on a centralized exchange or bridge, Alice submits an offer on the Ethereum blockchain. Bob, who may want to exchange 1 ETH for ADA, notices the offer and submits a corresponding offer on the Cardano blockchain. They proceed to exchange digital signatures, either on-chain or off-chain, ensuring that only one of two outcomes is possible: a) Alice and Bob both receive their assets, or b) the transaction is fully reverted. In scenario a), Alice receives her ADA on the Cardano blockchain, and Bob receives his ETH on the Ethereum blockchain. In scenario b), no value is transferred between blockchains. It's important to note that the assets being exchanged remain on their respective native blockchains and are not held in custody, thereby minimizing associated risks. Additionally, the assets don't require wrapping or unwrapping, making the process easily understandable for non-technical users. Alice or Bob can choose to become a market maker, eliminating the need for vulnerable bridge liquidity pools. Although this protocol is generic, our plan is to provide a proof of concept implementation for EVM and Plutus, which are familiar to most developers. We have already conceived a few possible variations of this protocol.

How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Benefits to the Cardano ecosystem:

1. Interoperability: The proposed solution will enhance the interoperability of Cardano with other blockchains, allowing for seamless asset transfers and fostering collaboration between different blockchain ecosystems.
2. Accessibility: By enabling atomic cross-chain swaps, the solution will make it easier for users to access and participate in the Cardano ecosystem, attracting a broader user base and increasing adoption.
3. Security: The protocol's design, including the use of signatures and timelocks, ensures secure and trustless transactions, minimizing the risk of fraud or loss of assets during cross-chain swaps.
4. Decentralization: The solution promotes decentralization by eliminating the need for centralized intermediaries or liquidity pools, empowering individuals to directly exchange assets across blockchains.
5. Developer Tools: As part of the proposal, the team plans to provide a proof of concept implementation for EVM and Plutus, which will contribute to the development of tools and software for developers working on Cardano. This will facilitate the creation of decentralized applications (DApps) and smart contracts on the Cardano blockchain.

By addressing the challenge of interoperability and providing efficient cross-chain swaps, the proposed solution will have a positive impact on the Cardano ecosystem, promoting accessibility, security, and collaboration within the DeFi space.

How do you intend to measure the success of your project?

To measure the success of the proposed project, we will track and evaluate the following key metrics:

1. Adoption and Usage: We will monitor the adoption rate of the atomic cross-chain swap protocol among users and projects within the Cardano ecosystem. This will include tracking the number of successful cross-chain swaps executed using the protocol and the volume of assets transferred. Increasing adoption and usage will indicate the value and practicality of the solution.
2. Interoperability: We will assess the level of interoperability achieved by measuring the number of different blockchains that successfully integrate with Cardano through the atomic swap protocol. The more blockchains that can seamlessly interact with Cardano, the greater the level of interoperability and connectivity within the ecosystem.
3. Security and Trust: We will conduct rigorous security analysis and testing to ensure the protocol's resilience against potential vulnerabilities and attacks. The success will be measured by the absence of security breaches and the ability of the protocol to securely facilitate cross-chain swaps without the risk of asset loss or fraudulent transactions.
4. Developer Adoption: We will gauge the interest and adoption of the protocol by developers within the Cardano ecosystem. This will involve tracking the number of projects and developers utilizing the protocol for building decentralized applications and integrating with other blockchains. Increased developer adoption indicates the usefulness and relevance of the solution for expanding the Cardano developer community.
5. Community Feedback: We will actively seek feedback from the Cardano community, including developers, users, and stakeholders. This feedback will provide insights into the user experience, satisfaction, and any areas that may require improvement. Positive community feedback and engagement will reflect the benefits of the project for the Cardano ecosystem.

By tracking and measuring these metrics, we will be able to assess the project's progress, its impact on the Cardano ecosystem, and validate the success of the proposed solution. Regular reporting and sharing of results with the community will ensure transparency and accountability throughout the project's execution.

Please describe your plans to share the outputs and results of your project?

We have a comprehensive plan to share the outputs and results of our project with the Cardano community and beyond. Our goal is to ensure transparency, knowledge dissemination, and engagement with stakeholders. Here are our plans:

1. Documentation: We will prepare detailed documentation that describes the cross-chain swap protocol, its technical specifications, implementation guidelines, and security considerations. This documentation will be made available in a user-friendly format to enable easy understanding and implementation by developers and enthusiasts.
2. Open Source Repository: We will create a dedicated open-source repository on GitHub to host the codebase of the reference implementation of the protocol. This repository will be publicly accessible, allowing developers to explore, review, and contribute to the project. By open-sourcing the code, we aim to foster collaboration and community involvement.
3. Community Engagement: We will actively engage with the Cardano community through various channels, including forums, social media platforms, and developer communities. We will participate in discussions, address questions, and gather feedback to foster a collaborative environment. Community feedback will be valued and considered for future enhancements and iterations of the protocol.
4. Collaboration and Partnerships: We will actively seek collaboration and partnerships with other projects, developers, and organizations within the Cardano ecosystem and the broader blockchain community. Through collaborations, we can leverage synergies, share knowledge, and collectively contribute to the advancement of cross-chain interoperability.

By implementing these strategies, we aim to ensure that the outputs and results of our project are widely accessible, well-documented, and actively shared with the Cardano community. We believe that open communication, collaboration, and knowledge dissemination are vital for the successful adoption and utilization of our proposed atomic cross-chain swap protocol.

What is your capability to deliver your project with high levels of trust and accountability?

Our team, the MuesliSwap Team, has a proven track record of delivering high-tech solutions with a strong reputation for trust and accountability. We have demonstrated our capabilities in the following ways:

1. Pioneering DEX Development: We were the first to launch a decentralized exchange (DEX) on the Cardano blockchain, establishing our position as innovators in the ecosystem. Our hybrid AMM-Orderbook DEX with integrated DEX Aggregator sets us apart from the competition, showcasing our technical expertise and commitment to pushing the boundaries of decentralized finance.
2. Successful Funded Projects: We have already completed two projects funded through Fund 9 of Catalyst, the Cardano project funding platform. One of these projects has been publicly deployed and is accessible to users, highlighting our ability to deliver on our commitments. We have a track record of meeting project timelines and delivering tangible results.
3. Competent and Dedicated Team: Our team consists of a large group of dedicated technologists who are passionate about blockchain and decentralized finance. We have the necessary competence, skills, and capacity to successfully complete this project within the allocated time frame while ensuring high-quality outcomes.
4. Trustworthiness and Accountability: We prioritize trust and accountability in all our endeavors. Our reputation within the community reflects our commitment to transparency, integrity, and delivering on our promises. We understand the importance of maintaining the trust of our stakeholders and strive to exceed expectations in terms of project delivery and outcomes.

Given our experience in pioneering DEX development, successful completion of funded projects, a competent and dedicated team, and our commitment to trust and accountability, we are confident in our capability to deliver this project with high levels of trust and accountability.

What are the main goals for the project and how will you validate if your approach is feasible?

The main goals of the project are to create a scalable protocol for efficient atomic cross-chain swaps between Cardano and other blockchains and to validate the feasibility of this approach. To validate the feasibility of our approach, we will follow these steps:

1. Research and Literature Review: We will conduct an extensive literature review to gather existing knowledge and research on atomic cross-chain swaps and related protocols. This will help us understand the current state of the field, identify potential challenges, and learn from previous work.
2. Design and Architecture: Based on the gathered knowledge, we will design a scalable protocol for atomic cross-chain swaps that takes into account the specific requirements and characteristics of Cardano and other target blockchains. We will focus on aspects such as security, trustlessness, efficiency, and compatibility.
3. Proof of Concept Implementation: We will develop a proof of concept implementation of the protocol, targeting both the Plutus and EVM environments. This implementation will serve as a tangible demonstration of our approach and allow us to assess its functionality and performance. We will thoroughly test and evaluate the implementation to ensure it meets the desired objectives.
4. Security Analysis and Auditing: We will engage in rigorous security analysis and testing of the protocol implementation. This will involve conducting formal verification, vulnerability assessments, and external consultations with security experts. By identifying and addressing potential security vulnerabilities, we will validate the robustness and trustworthiness of our approach.
5. Scalability Testing: To validate the scalability of the protocol, we will conduct comprehensive testing under various load conditions and transaction volumes. We will measure the performance, throughput, and latency of the protocol to ensure it can handle a significant number of cross-chain swaps without compromising efficiency or security.
6. Community Feedback and Review: We will actively seek feedback from the Cardano community, developers, and other stakeholders. This feedback will help us validate the feasibility of our approach by considering different perspectives, addressing concerns, and incorporating valuable insights into the protocol's refinement.

By following this validation process, which includes research, design, implementation, security analysis, scalability testing, and community feedback, we will be able to determine the feasibility of our approach for efficient atomic cross-chain swaps. The successful completion of these steps will demonstrate the viability and potential of our solution, providing confidence in its feasibility within the Cardano ecosystem and beyond.

Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Milestone 1: Research and Design (Estimated Time: 1.5 months)

• Conduct a comprehensive literature review on existing atomic swap protocols and cross-chain trading mechanisms.
• Analyze the specific requirements and challenges related to enabling atomic swaps between Cardano and other blockchains.
• Design a scalable cross-chain swap protocol that can be implemented between Cardano and other blockchains.

Milestone 2: Security Analysis and Testing (Estimated Time: 2 months)

• Perform formal verification and security analysis of the proposed protocol to identify potential vulnerabilities and ensure its robustness.
• Conduct scalability testing to assess the protocol's performance under various network conditions.
• Document the findings and write a research paper.
• Seek external consultation and auditing to gain insights and recommendations for improving the security and efficiency of the protocol.
• Implement necessary updates and improvements based on the feedback received.

Milestone 3: Proof of Concept Implementation (Estimated Time: 1.5 months)

• Develop a proof of concept implementation of the cross-chain swap protocol.
• Implement the protocol in both Plutus (Cardano) and EVM (Ethereum Virtual Machine) environments to demonstrate its interoperability.
• Conduct extensive testing to ensure the functionality and reliability of the implementation.
• Deploy the proof of concept implementation on the respective testnets.

Milestone 4: Community Feedback and Iteration (Estimated Time: 1 month)

• Share the proof of concept implementation and research findings with the Cardano and blockchain communities.
• Collect feedback from the community, developers, and experts to gather insights and identify areas for improvement.
• Iterate on the protocol and implementation based on the feedback received.
• Update the documentation and research paper accordingly.

Milestone 5: Finalization and Documentation (Estimated Time: 0.5 months)

• Finalize the cross-chain swap protocol based on the iterations and feedback.
• Prepare detailed documentation and technical specifications for the protocol.
• Publish a final research paper summarizing the protocol, its implementation, and the security analysis conducted.
• Make the documentation, code, and research paper publicly available on GitHub and other relevant platforms.

Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1: Research and Design

• Deliverables:Comprehensive literature review on existing atomic swap protocols and cross-chain trading mechanisms.
• Analysis of requirements and challenges for enabling atomic swaps between Cardano and other blockchains.
• Design of a scalable cross-chain swap protocol that can be implemented between Cardano and other blockchains.
• Research paper documenting the findings, design, and potential improvements.

Milestone 2: Security Analysis and Testing

• Deliverables:Formal verification and security analysis report of the proposed protocol, identifying vulnerabilities and suggesting improvements.
• Scalability testing results, assessing the performance of the protocol under various network conditions.
• External consultation report, incorporating feedback and recommendations from experts in the field.
• Updated protocol design based on the analysis and feedback.

Milestone 3: Proof of Concept Implementation

• Deliverables:Proof of concept implementation of the cross-chain swap protocol in both Plutus (Cardano) and EVM (Ethereum Virtual Machine) environments.
• Functional and tested implementation of the protocol on respective testnets.
• Detailed documentation of the implementation, including technical specifications and usage instructions.

Milestone 4: Community Feedback and Iteration

• Deliverables:Community feedback collected from Cardano and blockchain communities, developers, and experts.
• Iterations and improvements made to the protocol and implementation based on the feedback received.
• Updated documentation and technical specifications reflecting the changes made.
• Revised research paper incorporating community feedback and improvements.

Milestone 5: Finalization and Documentation

• Deliverables:Finalized cross-chain swap protocol based on iterations and feedback.
• Comprehensive documentation, including detailed technical specifications and usage guidelines.
• Research paper summarizing the protocol, its implementation, and the security analysis conducted.
• Open-source code repository with the final implementation of the protocol.

Intended outcomes:

• A well-researched, scalable cross-chain swap protocol between Cardano and other blockchains.
• Security analysis and testing to ensure the robustness and reliability of the protocol.
• Proof of concept implementation demonstrating the functionality and interoperability of the protocol.
• Community feedback and iterations to improve the protocol based on real-world insights.
• Comprehensive documentation, technical specifications, and research paper for transparency and future reference.
• Project evaluation and reporting to share the outcomes and lessons learned with the Catalyst community.

Please provide a detailed budget breakdown of the proposed work and resources.

Requested budget 180,000 ADA ~ $ 54,000

Research & Development: $24,000 (300 hours)

• Literature review on atomic swap protocols and cross-chain trading mechanisms.
• Designing a scalable cross-chain swap protocol for Cardano.
• Publishing research findings.

Security Analysis & Testing: $10,000

• Formal verification and security analysis: $5,000 (100 hours)
• Scalability testing: $5,000

Reference Implementation: $20,000 (250 hours)

• Developing a proof of concept implementation of the cross-chain swap protocol.
• Implementing the protocol in both Plutus (Cardano) and EVM (Ethereum Virtual Machine) environments.
• Testing and quality assurance of the implementation.

Please note that the budget allocation for research and development, security analysis, and reference implementation is based on the estimated number of hours required for each task. The hourly rates and the specific breakdown of costs may vary depending on the expertise and rates of the team members involved in the project.

It's important to mention that the MuesliSwap team plans to cover the remaining costs of development, ensuring that the project is efficiently funded and resources are utilized effectively.

This budget breakdown aims to cover research, development, formal verification and testing to deliver a high-quality cross-chain swap protocol for the Cardano ecosystem while providing value for money and a strong return on investment for the Cardano community.

Who is in the project team and what are their roles?

Our team, the MuesliSwap Team, has a proven track record of delivering high-tech solutions with a strong reputation for trust and accountability. We have demonstrated our capabilities in the following ways:

1. Pioneering DEX Development: We were the first to launch a decentralized exchange (DEX) on the Cardano blockchain, establishing our position as innovators in the ecosystem. Our hybrid AMM-Orderbook DEX with integrated DEX Aggregator sets us apart from the competition, showcasing our technical expertise and commitment to pushing the boundaries of decentralized finance.
2. Successful Funded Projects: We have already completed two projects funded through Fund 9 of Catalyst, the Cardano project funding platform. One of these projects has been publicly deployed and is accessible to users, highlighting our ability to deliver on our commitments. We have a track record of meeting project timelines and delivering tangible results.
3. Competent and Dedicated Team: Our team consists of a large group of dedicated technologists who are passionate about blockchain and decentralized finance. We have the necessary competence, skills, and capacity to successfully complete this project within the allocated time frame while ensuring high-quality outcomes.
4. Trustworthiness and Accountability: We prioritize trust and accountability in all our endeavors. Our reputation within the community reflects our commitment to transparency, integrity, and delivering on our promises. We understand the importance of maintaining the trust of our stakeholders and strive to exceed expectations in terms of project delivery and outcomes.

Given our experience in pioneering DEX development, successful completion of funded projects, a competent and dedicated team, and our commitment to trust and accountability, we are confident in our capability to deliver this project with high levels of trust and accountability.

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

The cost of the project represents value for money for the Cardano ecosystem in several ways:

1. Interoperability and Accessibility: By enabling efficient atomic cross-chain swaps between Cardano and other blockchains, the project enhances the interoperability of the Cardano ecosystem. This allows users to access and trade assets on different blockchains without the need for centralized intermediaries or bridges. The proposed protocol promotes a more inclusive and accessible DeFi ecosystem on Cardano, attracting more users and expanding the reach of the platform.
2. Minimizing Redundant Bridges: The project aims to provide a protocol that eliminates the need for traditional bridges, which often introduce complexities and limitations. By utilizing atomic swaps, the protocol allows assets to be exchanged between blockchains without leaving their native chains. This reduces the reliance on redundant bridged tokens and enhances the efficiency and security of cross-chain transactions.
3. Developer Familiarity: The proposed proof of concept implementation of the protocol in both Plutus (Cardano) and EVM (Ethereum Virtual Machine) environments caters to the familiarity of developers. This lowers the barriers for developers to adopt and contribute to the cross-chain swap protocol, promoting innovation and collaboration within the Cardano ecosystem.
4. Research, Security, and Auditing: The allocated budget for research, security analysis, and auditing ensures a thorough examination of the proposed protocol. By investing in formal verification, scalability testing, and external consultation, the project mitigates risks, identifies vulnerabilities, and enhances the overall security and reliability of the protocol. This helps build trust among users, developers, and stakeholders in the Cardano ecosystem.
5. Open-Source and Transparency: The project's commitment to open-source development and sharing the outcomes with the community ensures transparency and allows for peer review and collaboration. The documentation, technical specifications, and research paper produced as part of the project will serve as valuable resources for the Cardano community, facilitating further research, development, and adoption.

Considering these factors, the cost of the project aligns with the value it brings to the Cardano ecosystem in terms of interoperability, accessibility, security, developer engagement, and transparency. The proposed protocol and its implementation have the potential to unlock new opportunities, increase liquidity, and foster innovation within the Cardano blockchain and the broader DeFi landscape.