Please describe your proposed solution

As the cryptocurrency landscape continues to evolve, the diversity in investors, developers, and projects has increased substantially. This diversification is reflected in the myriad ways portfolios are structured, with individuals and entities spreading their investments across various digital assets, blockchain networks, and decentralized finance (DeFi) platforms. One of the critical advancements driving this diversification is the development of bridges, such as the Rosen Bridge, that enhance the liquidity and transmissibility of digital assets across different blockchain systems. These bridges benefit all parties involved by fostering a more integrated and efficient market ecosystem.

At the core of the benefits provided by Rosen Bridge is the enhancement of market access and liquidity. Rosen Bridge enables the seamless transfer of digital assets between otherwise siloed blockchain networks, specifically connecting Solana to Cardano. This interoperability ensures that liquidity is not trapped within a single blockchain but can flow freely across multiple networks.

Consequently, this increases the overall liquidity of digital assets, making it easier for investors to enter and exit positions, and for projects to access funding and resources across different ecosystems.

Stablecoins play a crucial role in the crypto economy by providing a stable medium of exchange and a store of value, especially important during periods of high volatility. The ability to move stablecoins across different blockchain networks via Rosen Bridge supports their wider adoption and use. For instance, stablecoins on the Solana network can be transferred to the Cardano network, enabling users to leverage Cardano's unique features and capabilities.

This cross-chain compatibility is essential for the growth of DeFi applications, which rely on stablecoins for lending, borrowing, and other financial services. By making stablecoins more accessible across different networks, Rosen Bridge ensures a more resilient and interconnected DeFi ecosystem.

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

For investors, the ability to diversify their portfolios across multiple blockchain networks without friction is a significant advantage. Rosen Bridge allows investors to hold and trade a wide variety of assets from different blockchains, enabling them to hedge risks and optimize returns. This diversification is not only beneficial for individual investors but also attracts institutional investors who seek to mitigate risks through a diversified portfolio. The ease of transferring assets across networks encourages more investment and participation in the crypto markets, driving overall growth and maturity.

Rosen Bridge also fosters innovation by enabling collaboration between different blockchain communities. Developers can leverage the strengths of both Solana and Cardano to create hybrid solutions that are more robust and feature-rich. For example, a decentralized application (dApp) might use the smart contract capabilities of Cardano combined with the high throughput of Solana to offer superior performance and functionality. Such collaborative efforts lead to the development of new and innovative products and services, pushing the boundaries of what is possible in the blockchain space.

The growth of blockchain communities is closely linked to the ability to interact and engage with other networks. Rosen Bridge facilitates this interaction by enabling users, developers, and projects from Solana and Cardano to collaborate and share resources. This cross-pollination of ideas and technologies enriches the community, leading to a more vibrant and dynamic ecosystem. As more users and developers participate in these interconnected networks, the overall community grows, attracting even more participants and fostering a positive feedback loop of growth and innovation.

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?

Rosen bridge has a history of delivering open source code creating a unique bridge standard. Members of this proposal and advisory team have strong experience in the blockchain sector and have delivered (and delivering) a number of successful products for the Ergo and Cardano ecosystems. The team are strong advocates of open-source technology and have examples to show for this. As such, they will continue leveraging their experience to ensure timelines and milestones are met.

• Delivery of the Rosen Bridge framework in previous funds - Bridge is Live now (Check Github)

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

Milestone 1: Research:

• In-depth analysis of existing Solana bridge solutions
• Identifying potential security risks for Solana bridging
• Understanding the unique requirements of the Cardano and Solana ecosystems for Rosen Bridge to be deployed.

Preparation:

• Setting up the necessary infrastructure and tools for development, including software licenses, server costs, and other technical resources.

Design:

• Development of architectural plans and protocols for the bridge, ensuring robust security and efficient functionality.
• This includes the creation of technical specifications and design documents.

Milestone 2: - Module Development: Building core components such as scanners, verification methods, and communication channels. This involves coding, debugging, and initial unit testing.

• Integration Testing: Ensuring that individual modules work seamlessly together. This includes the allocation of resources for comprehensive testing environments.

• Quality Assurance: Rigorous testing to identify and fix bugs, and to validate the functionality of the modules against the design specifications.

Milestone 3: - Development of Multisig Mechanism: Creating a secure multi-signature system for both hot and cold wallets, crucial for enhancing the security of cross-chain transactions.

• Security Testing: Extensive testing of the multisig system to ensure it is hack-proof and meets high-security standards.

• Integration: Seamlessly integrating the multisig system with the existing bridge infrastructure.

Milestone 4: - Code Integration: Merging the developed modules with the existing Rosen Bridge codebase. This includes ensuring compatibility and efficient performance.

• UI/UX Development: Designing and implementing user interfaces and user experiences for both watchers and guards, enhancing usability and accessibility.
• Final Testing: Conducting end-to-end tests to ensure all components work harmoniously.

Milestone 5: - Testnet Deployment: Launching the bridge on testnets to simulate real-world usage and identify any unforeseen issues.

• Community Testing: Engaging with the community for beta testing, gathering feedback, and making necessary adjustments.

Final Milestone: - Documentation: Preparing comprehensive documentation for developers and users, detailing the bridge's functionality and usage

• Mainnet Launch: Rolling out the bridge on the Cardano and Solana mainnets, marking the project's culmination.

• Monitoring Tools: Setting up systems to monitor the bridge's performance and security in real-time.

• Post-Launch Support: Allocating resources for immediate support and maintenance post-launch to ensure smooth operation.

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

<u>Core team:</u>

• Mohammad Hasan Samadani (Lead Developer): Lead developer for the Rosen Bridge project + SuSy Bridge (Wormhole). Holds a PhD in computer science and has over 12 years experience in security, software development, and team management. Designed various applications for the Ergo ecosystem.

• Joseph Armeanio (Project Lead): Currently a Board Member and Manager of Business Development of the Ergo Foundation.

• Daniel Friedman (Education and User Onboarding Lead): Currently an advisor to the Ergo Foundation and Co-Founder of zenGate Global. Previously, he was part of the IOHK early-founding team that helped launch the Cardano blockchain.

• Theodore Morisis (SPO and Watchers Coordination Lead): Operator of the Chef Stake Pool, community educator and Cardano Ambassador. Theodore also works as a community manager for zenGate Global.

<u>Subject Matter Experts:</u>

• Alexander Chepurnoy (Code Auditing Support): Co-founder of the Ergo Blockchain and smartcontract.com (now Chainlink). One of the first employees at IOHK, as a researcher fellow and manager for the Scorex Project. Active in blockchain since 2011 and has 20+ academic papers contributed to the industry.

• Sam Lambert (Project Management and User Onboarding Support): Co-Founder of zenGate Global. Previously, worked as a management consultant at Oliver Wyman and helped set up the Global Digital Assets practice. Worked with some of the largest banks, insurance and telecommunications companies around the world.

Please provide a cost breakdown of the proposed work and resources

Milestone 1: Research, Preparation, and Design - 150,000 ADA

Milestone 2: Implementation and Testing of Modules - 100,000 ADA

Milestone 3: Implementation of Multisig Signatures - 100,000 ADA

Milestone 4: Integration of Modules into Current Code Base - 50,000 ADA

Milestone 5: Testing and Deployment on Testnets - 50,000 ADA

Milestone 6: Deployment on Mainnet - 50,000 ADA

No Dependencies

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

The investment in Rosen Bridge represents a commitment to broadening the horizons of Cardano, enabling it to seamlessly interact with other major blockchain networks. This interconnectivity is crucial for several reasons:

• Increased Liquidity: By connecting with Solana Cardano native tokens gain access to a much larger pool of liquidity. This is vital for the growth of DeFi projects within the Cardano ecosystem, as it allows for more fluid and dynamic financial interactions.
• Enhanced Accessibility: The bridge reduces the barriers to entry for users and developers from other ecosystems. This inclusivity fosters a more diverse and robust community, leading to innovative projects and collaborations.
• Ecosystem Growth: With greater liquidity and accessibility, the Cardano ecosystem is poised for accelerated growth. It opens up new avenues for developers, entrepreneurs, and users to explore, experiment, and create value within the Cardano framework.