Please describe your proposed solution.
To achieve our vision, we will create a multi-chain decentralized protocol whose smart contracts will be running on Cardano with effortless single-click token bridging to host chains such as Ethereum and Polygon. This kind of cross-chain infrastructure allows the protocol to provide more accessible services. For example, Ethereum users will no longer have to set up a Cardano wallet to invest in the Cardano ecosystem.
Cardano Index Token
The Cardano Index Token will be managed by a set of smart contracts on the Cardano blockchain. This set of smart contracts will manage the portfolio of assets that the index represents. It will receive and withdraw funds, buy and sell assets, and mint and burn the Cardano Index tokens. Every Index Token will represent a fraction of a basket of Cardano tokens, meaning your investment is diversified and the value will grow or contract inline with the value of the Index as whole.
Cross-chain Investment
On the host chains, we will build smart contracts that will interact with existing bridges to allow easy purchasing of tokens. For example, an Ethereum investor will be able to buy index tokens on Ethereum network using $ETH, whilst smart contracts will handle the purchasing, bridging and minting. In the reverse, an Ethereum investor can sell their token and receive $ETH in exchange, without needing to worry about bridging and selling multiple tokens.
We have already been working with Life Network on the branding, first version of the Technical Whitepaper and on the first version of the Website.
Please describe how your proposed solution will address the Challenge that you have submitted it in.
Our proposed solution impacts directly in this challenge through the following actions:
1) Providing a diversified portfolio of Cardano Assets that represent the process of wealth creation on Cardano
2) Bringing exposure to non cardano investors, such as crypto investors unfamiliar with the Cardano ecosystem and even non-crypto investors
3) Simplifying the challenges of managing a well-diversified portfolio in a fast-evolving ecosystem.
4) Promoting the Cardano Excosystem and trying to lure users and funds from other blockchains
5) Developing new technical implementations connecting Cardano to other blockchains and vice versa (SDKs, APIs, bridges, etc)
What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
We have identified the following risks that could prevent us from delivering this phase of the project successfully:
-
Oracles: our solution needs reliable oracles in order to provide the most accurate value for each asset. To mitigate this risk we are planning to develop our own and also collaborating with teams that are already working on this endeavour.
-
Bridges: our entire project relies on third pary bridges - there is a strong dependency there. To mitigate this risk we are working in parallel on both paths: developing our own and using bridges already developed.
-
Plutus: although we are developing our product in other chains, great part of the effort will be done in Cardano. To achieve this, we need expertise from Haskell/Plutus devs, which is not easy to find in the market. To mitigate this risk we are having conversations with important developers from the ecosystem, such as MLabs.