Please describe your proposed solution
A month ago, Charles Hoskinson did a video about “Liquidity and Value”, in which he explains some of the things Cardano could do to improve its liquidity. One the ways that Cardano has is to develop decentralized Index protocols. Indexes can bring value into Cardano Native tokens, creating demand for Cardano Native Tokens. According to his vision, a Cardano Vending Machine is necessary. Users of all networks can deposit Ada and other tokens in one or multiple smart contracts and that will be automatically converted to Cardano tokens.
Our Escrow Smart Contract is part of that set of smart contracts that allows users to invest in Cardano Native Tokens in an easy and decentralized way.
<https://www.youtube.com/watch?v=Iu3eiX7lJyA>MAYZ smart contracts
We're building upon the existing framework of the MAYZ Protocol, enhancing its functionality, robustness, and user-friendliness
We aim to optimize user engagement by integrating novel functionalities, specifically the Escrow Contract, into the MAYZ Protocol. This enhances the potential of the existing protocol and pathways to acquire Fund Tokens (FT), which represents a share of the diversified portfolio in a fund created by the MAYZ Protocol
Our project seeks to facilitate a more inclusive and dynamic interaction with the protocol. It is designed to engage various participants in the Cardano ecosystem. We aspire to streamline their interaction with the protocol and provide them access to a diversified portfolio of Cardano native tokens.
The importance of this proposal to Cardano is manifold. It resonates with Cardano's ethos of decentralization and community engagement. It brings a novel, user-centric perspective to the ecosystem's growth and is a potential blueprint for future developments within the Cardano blockchain. Ultimately, it aims to position Cardano as a more appealing option within the DeFi sector, driving its adoption and reinforcing its place as a critical player in decentralized finance.
The solution
At the core of our proposal are the Escrow Contracts. They will offer an alternative and efficient way to acquire Fund Tokens (FT). They are designed to aid users who may not possess all the necessary tokens to deposit into the fund directly. This facilitates broader user participation within the fund.
The users will be able to create an Order in the contract and send any amount of some of the tokens that make up the index they are trying to acquire. The community plays a crucial role in our system. Those who create Escrow Orders will leave a fee that can be claimed by others in the community who fulfill these orders, either partially or entirely, giving back their own FT in exchange of the locked Tokens and the Fee. This fosters a spirit of cooperation and incentivizes active participation within the ecosystem.
By the time of fulfilling an order the user doing so will sell its FT tokens at market price, and will get the Tokens offered, at market place, at the moment of the realization of this conversion/trade. For this Oracle prices will be fetched. The creator of the order will be also able to set a minimum acceptable price in ADA that he is willing to accept for the sale. We'll design this contract to interact with a robust and existing oracle data feed that we developed for the Mayz Protocol, providing the accuracy necessary for users to make informed trading decisions.
The escrow orders will create a new pathway for users to participate in Mayz’s Funds. It will complement the existing Swap Offers that are already implemented, which allows users to trade FT by ADA and vice versa.
By making acquiring Fund Tokens more accessible and creating an array of trading opportunities, we anticipate that our system will stimulate a community effort to maintain an adequate supply of orders to meet demand. The vibrant exchange environment thus created will foster a sense of community, drive user participation, and underpin the success of our proposal. This holistic, community-focused approach is a crucial feature of our project, reflecting our commitment to building a truly inclusive and engaging ecosystem.
Our implementation strategy for incorporating Escrow Contracts within the MAYZ Protocol is highly detailed, from oracle integration to contract versioning. In the technical realm, implementing Escrow Contracts within the MAYZ Protocol will involve significant work in both backend smart contract development and frontend user interface (UI) design.
Regarding the REST API, we'll build a robust interface to facilitate smooth communication between the front end, the smart contracts, and the oracle data feeds. This will involve developing a comprehensive set of endpoints that allow for secure and efficient interactions with the contracts. Each endpoint will be designed with a specific function in mind, ensuring that every aspect of the user experience, from creating an order to filling one, is handled seamlessly.
An innovative aspect of our approach is the focus on contract versioning. Unlike traditional version control systems that primarily deal with source code, our versioning system caters to smart contracts. This means we'll be creating an ecosystem where multiple versions of the contracts can coexist, and the user interface and the API can interact with any of these versions in a specific, controlled manner. This unique capability provides flexibility and ensures the long-term sustainability of the platform, even as enhancements and changes are made to the contracts over time.