Please describe your proposed solution

NexusBridge will focus on an interoperability solution that enables seamless and secure transfers of assets between Bitcoin (UTXO) and Cardano (ADA UTXO). The solution will be designed to maximize security, cost-efficiency, and scalability while ensuring ease of use for end-users.

Key Components of the Solution:

1. UTXO-Based Compatibility:

• Both Bitcoin and Cardano operate on a UTXO (Unspent Transaction Output) model, but they differ in technical implementations.

NexusBridge will focus on researching how to align their UTXO structures and create a shared protocol that allows users to transfer value between these blockchains efficiently.

The research will provide a detailed feasibility report, outlining the technical, security, and cost aspects of developing a robust cross-chain bridge for Cardano. It will serve as the foundation for potential future development, enabling seamless and secure DeFi operations involving Cardano assets across multiple networks.

Future Development

NexusBridge is a modular, secure, and scalable cross-chain bridge that enables seamless interoperability between Cardano and major blockchains like Ethereum (ETH). By converting these assets into native tokens on Cardano, NexusBridge unlocks liquidity, allowing users to participate in DeFi activities such as lending, staking, and trading without cross-chain friction. Utilizing advanced technologies such as zkSync and Chainlink CCIP, NexusBridge ensures that transactions are efficient, secure, and cost-effective, positioning Cardano as a hub for cross-chain DeFi.

Please define the positive impact your project will have on the wider Cardano community

NexusBridge is poised to be the premier solution for cross-chain asset transfers, focusing on enhancing Cardano's DeFi ecosystem. By converting BTC, into native Cardano tokens, and prioritizing modularity, zkSync integration, and security, NexusBridge will establish Cardano as a central hub for cross-chain DeFi. The project’s future expansion will build on this foundation, ensuring that Cardano remains at the forefront of the evolving DeFi landscape. This could potentially bring 25,000 new users to Cardano after launch . This is being conservative as Currently something like this does not exist on Cardano.

Additionally, as of 2024, there are estimated to be over 150 million Bitcoin wallets in existence waiting for lower fees and the Cardanot Blockchain.

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

I am an IT Project Manager working for Honeywell. I have an MBA in Project management and Auditing.

I took into account all the concerns from previous bridges and attempted to mitigate those risks. additionally, BigPey will be strategic advisor and is known for delivering and meeting milestones.

What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Phase 1 (4 Months) - Technical Feasibility:

- Objective: Explore components for secure transfers of Cardano native assets with Bitcoin assets.

Budget: 40,000 ADA

KPIs (Key Performance Indicators)

1. Technical Feasibility: What is possible and how could these two chains work together. Comprehensive report of results.

Milestone 2: Phase 2 (3 Months) - Cost Analysis:

• Objective: Can you use Cardano to reduce costs for BItcoin users?
• additionally, Future potential Evaluate zk-Rollups for cost optimization for Bitcoin users.
• Budget: 40,000 ADA

KPIs (Key Performance Indicators)

Cost Efficiency: Cost analysis report demonstrating the results of how utilizing Cardano can reduce costs for Bitcoin users.

Milestone 3: Phase 3 ( 3 Month) - Security Evaluation:

Security overview:

Is a bitcoin cardano bridge more secure than an ETH bridge?

• Objective: Conduct security assessments of a Cardano/ETH bridge versus a Cardano Bitcoin Bridge.
• Budget: 40,000 ADA

KPIs (Key Performance Indicators)

Security Robustness: Comprehensive security evaluation with detailed reports.

Final Milestone: Phase 4 ( 2 Month) - Final Report & Recommendations:

• Objective: Compile research findings, present a comprehensive feasibility report, and provide a clear roadmap for future development and scaling Bitcoin with Caredano
• Budget: 30,000 ADA

KPIs (Key Performance Indicators)

Comprehensive Feasibility Report: Final document providing insights, recommendations, and a roadmap for future development for scaling Bitcoin with Cardano enabling stakeholders to make informed decisions about the project’s next steps.

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

Marlon Daley, Project Manager

1. Project Planning and Coordination:

- Define the project's scope, goals, and deliverables.

- Develop a timeline with milestones and allocate tasks.

- Coordinate between researchers, developers, and other stakeholders.

2. Resource and Budget Management:

-Assign roles and ensure the team has necessary resources.

-Monitor the project's 150,000 ADA budget and prevent overspending.

Risk and Issue Management:

- Identify potential risks and create mitigation strategies.

- Monitor progress and resolve issues or delays that arise.

4. Communication and Reporting:

- Provide regular updates to stakeholders on project status.

- Document key findings and ensure smooth internal communication.

5. Quality Assurance:

- Ensure thorough testing and that deliverables meet standards.

- Oversee the evaluation of research and prototypes.

6. Final Reporting:

- Compile the final feasibility report with clear recommendations and a roadmap for future phases.

Atrium and Peyton aka Bigpey strategic consulting/advising. They will also help to provide access access to the best Developers in the Cardano space.

Please provide a cost breakdown of the proposed work and resources

Budget Allocation:

1. Phase 1 (40,000 ADA): Explore components for secure transfers of Cardano native assets with Bitcoin assets.
2. Phase 2 (40,000 ADA): Can you use Cardano to reduce costs for BItcoin users.
3. additionally, Future potential Evaluate zk-Rollups for cost optimization for Bitcoin users.
4. Phase 3 (40,000 ADA): Conduct security assessments of a Cardano/ETH bridge versus a Cardano Bitcoin Bridge.
5. Phase 4 (30,000 ADA): Compile findings into a comprehensive feasibility report, detailing recommendations for future development and scalin

No dependencies

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

The Cardano ECOSYSTEM is not known for DEFI what I am trying to bring is based on my research of the failed projects before while implementing measures to not make the same mistakes. NATIVE asset on cardano connecting BTC, and potentially other chains could be the next revolution for Cardano. Provided it is executed correctly with your support and the community.

The cost of this project represents significant value to the Cardano ecosystem by addressing critical gaps and enhancing the overall DeFi landscape. Here’s how:

1. Strengthening Cross-Chain Interoperability

Currently, Cardano's ecosystem is somewhat siloed, with limited options for users to move assets seamlessly between different blockchains. By researching the feasibility of a modular, scalable cross-chain bridge, this project aims to enable Cardano native assets to flow freely across networks like Ethereum and Bitcoin. This will attract more users to Cardano, as they can leverage the benefits of its low fees, scalability, and security without being restricted to a single ecosystem. The cost invested in this feasibility study will provide the necessary groundwork to make this a reality, opening up new opportunities for Cardano’s DeFi projects.

2. Enabling Cost-Efficient Transactions

High transaction fees are a common deterrent for users in the DeFi space, especially on networks like Ethereum. By exploring the integration of zk-Rollups, the project aims to offer cost-efficient solutions, making cross-chain transactions involving Cardano native assets cheaper and faster. This not only benefits users but also helps developers create more affordable and scalable DeFi applications on Cardano. The 150,000 ADA budget is a strategic investment to ensure that the research identifies the most effective ways to minimize fees, thereby increasing Cardano’s appeal as a competitive DeFi hub.

3. Security Enhancements

Security is a cornerstone of user trust in the DeFi ecosystem. The investment in this project will fund detailed security evaluations, ensuring that Cardano native assets can be moved across chains securely. This is particularly important given the history of exploits in existing bridges, which have caused massive financial losses. By proactively researching robust security measures, such as multi-signature wallets and integrating secure cross-chain messaging (via Chainlink CCIP), the project will enhance user confidence in Cardano-based DeFi protocols. This focus on security represents significant value, as it builds a safer, more trusted ecosystem.

4. Facilitating Ecosystem Growth

The insights gained from this feasibility study will set a clear foundation for building a robust cross-chain bridge that can later integrate more blockchains, including upcoming ecosystems. This flexibility is key to ensuring Cardano can scale and remain relevant in a rapidly evolving DeFi market. By investing 150,000 ADA now, the Cardano community will be paving the way for future growth, creating opportunities for new projects, partnerships, and integrations. This has the potential to draw developers, liquidity, and users to the Cardano network, driving overall ecosystem growth.

See below based on this project being fully funded and feasibility becomes actual.

NexusBridge: Estimated New Users to Cardano (ADA) and Income

1. Estimating New Users to Cardano (ADA)

Estimating the number of new users to Cardano (ADA) and the potential income for the NexusBridge project involves making several assumptions about market conditions, transaction volumes, and user adoption rates.

Key Factors for Estimation:

• Cross-Chain Demand: The number of users looking to transfer assets like ETH, BTC, and BNB to Cardano for DeFi activities.
• Current DeFi Market on Cardano: Estimating current user growth in Cardano’s DeFi ecosystem can help gauge the potential for new users.
• Adoption Rate: Projecting a reasonable adoption rate for NexusBridge, based on marketing, partnerships, and ease of use.

MODEST ESTIMATION

Using the assumptions of initial users, adoption growth, and conversion rates, we estimate new user growth as follows:

**Year 1 New Users Estimation**

1. Starting Users: 50,000 active DeFi users interested in cross-chain transfers.

2. Conversion Rate: 10% adoption rate = 5,000 new users in the first quarter.

3. Growth Rate: 15% per quarter.