Please describe your proposed solution
While Cardano DeFi offers immense potential, the current DeFi ecosystem lacks full compatibility with advanced token types ("smart tokens") that enable new usecases such as stablecoins with similar functionality such as USDT/USDC. This unreadiness can hinder adoption of the Cardano blockchain on a mass scale.
This challenge is addressed by CIP-113, a groundbreaking proposal introducing programmable token-like assets to Cardano. These tokens maintain true ownership while offering the same level of programmability as other ecosystems. This innovation addresses Cardano Problem Statement 3 (CPS-0003), enabling control over a token's life cycle beyond minting and burning. CIP-113 empowers developers with features like:
- Programmable token transfers: Define custom rules for token behavior.
- Lifecycle control: Manage a token's existence beyond the minting stage.
- Native smart asset integration: Seamlessly integrate assets like USDC and USDT.
This paves the way for a world of possibilities and exciting use cases, from enforcing NFT royalties to enabling native stablecoin integration (USDC/USDT) and advanced liquidity management features. CIP-113 also prioritizes wallet compatibility, co-existence with existing tokens, and computational efficiency.
<u>Our Solution:</u> A Collaborative DEX Built for CIP-113
Minswap Labs and Fluid Tokens together propose a collaborative solution: a DEX fully compatible with CIP-113 programmable tokens. This DEX will feature a custom-built AMM (Automated Market Maker) v2.1 contract, specifically designed to seamlessly integrate these smart assets within Cardano's DeFi landscape.
Our partnership with Fluid Tokens brings unparalleled expertise. Matteo Coppola, Fluid Token's lead developer, a certified Cloud Architect and also the author of this proposal, has been one of the three key contributors to CIP-113, guaranteeing a deep understanding of the technical requirements and the potential of this innovation.
By building this CIP-113 compatible DEX, we aim to:
- Unlock the potential of programmable tokens: Empower developers and usher in a new era of DeFi on Cardano.
- Enable seamless stablecoin integration: Facilitate the native integration of USDC, USDT, and other regulated stablecoins.
- Foster a thriving DeFi ecosystem: Provide the foundation for a robust and innovative DeFi landscape on Cardano.
This collaborative effort positions Cardano at the forefront of DeFi evolution. By embracing programmable tokens, we envision a future filled with innovative financial possibilities.