Please describe your proposed solution

We propose to develop and open-source a comprehensive frontend and backend framework for an orderbook-based decentralized exchange (DEX) on Cardano. Recognizing that on Cardano, a significant portion of DApp logic occurs off-chain due to the eUTxO model, we understand that only open-sourcing smart contracts is insufficient for making a DApp easily accessible for modifications and deployment. Actions such as order submission and cancellation need to be built into the frontend, enabling users to interact seamlessly with the orderbook via their browser wallets. Additionally, order matching and other critical operations need to be handled in the backend.

Our solution includes a newly designed, generic frontend that is easily customizable, allowing users to replace marketing images and names while retaining a disclaimer acknowledging the use of MuesliSwap's technology. Importantly, the frontend is not just about UI components; it also plays a crucial role in constructing transactions for order placement and cancellation. This ensures that users can interact directly with the DEX in a secure and intuitive manner.

The backend will be a "batteries-included" solution, requiring minimal configuration to set up and run an instance of the DEX. It consists of multiple components that need to interact seamlessly with each other:

• Querying On-Chain Orderbook State: Continuously retrieve the current state of the orderbook from the blockchain.
• Maintaining a Database of Open Orders: Keep a real-time database of open orders, essential for providing up-to-date information to users.
• API Services for Frontend Access: Provide APIs that make the orderbook state easily accessible to the frontend, ensuring efficient data retrieval and display.
• Matchmakers: Include matchmakers that scan the orderbook, find and optimize potential matches, and construct and submit matching transactions to the chain.

By providing both components, we aim to empower developers and entrepreneurs to launch their own orderbook DEX interfaces, fostering innovation and diversity within the Cardano DeFi ecosystem. Our backend requires minimal configuration to set up and run an instance of the DEX, lowering the technical barriers for deployment.

Our approach addresses the current gap in available open-source orderbook DEX frameworks on Cardano, as most existing solutions are liquidity pool-based and lack open-source frontend and backend infrastructure. By sharing our expertise and proven technology, we will lower the barrier to entry and stimulate the growth of decentralized trading platforms on Cardano.

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

Our project will significantly enhance the Cardano DeFi ecosystem by providing the first fully open-source framework for orderbook-based DEXes. This will enable developers and businesses to create their own exchanges, promoting decentralization and competition. By lowering technical barriers, we encourage innovation and diversity in decentralized trading platforms.

We plan to measure our impact quantitatively by tracking the number of forks and deployments of our codebase, as well as qualitatively through community feedback and engagement. We will share our outputs through public repositories on GitHub and actively engage with the community via forums and social media to support and collaborate with other projects building on our framework.

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?

Our team has extensive experience in building functional and fast DEXes, as demonstrated by our successful launch of the first orderbook DEX on Cardano. With a strong background in frontend and backend development, orderbook mechanisms, and analytics, we are well-equipped to deliver this project effectively.

To ensure trust and accountability, we will manage funds transparently and adhere to best practices in project management and code development. We intend to validate our approach by leveraging our existing technology, adapting it into a generic, open-source framework, and conducting thorough testing to ensure its reliability and usability.

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

Milestone 1: Milestone 1: Develop Prototype Frontend with Placeholder Data

A: Milestone Outputs

• Frontend Development:
• Design User Interface (UI):
• Create a visually appealing and intuitive UI layout for the orderbook DEX.
• Develop UI components such as navigation menus, order forms, orderbook displays, trade history, and account management sections.
• Implement Placeholder Data:
• Populate the frontend with fake data to simulate orderbook activity.
• Ensure that all UI components display data correctly and respond to user interactions.
• Wallet Integration Preparation:
• Begin setting up wallet connectivity interfaces to prepare for transaction signing via browser wallets (e.g., Nami, Yoroi).
• Customization Features:
• Incorporate the ability for users to easily customize branding elements like logos, color schemes, and images while maintaining necessary disclaimers.

B: Acceptance Criteria

• Functional prototype frontend with navigable UI components displaying placeholder data.
• UI is responsive and works across common browsers and devices.
• Customization options are documented and functional.
• Code is structured to accommodate future integration with backend and blockchain interactions.

C: Evidence of Milestone Completion

• Publicly accessible code repository with the prototype frontend.
• Hosted demo of the frontend available for stakeholders to test and provide feedback.
• Documentation outlining the frontend structure and customization instructions.

Milestone 2: Milestone 2: Backend Infrastructure Development Initiation

A: Milestone Outputs

• Backend Development:
• Architecture Design:
• Outline the backend architecture, detailing how components will interact.
• Define modules for data handling, APIs, database management, and blockchain interaction.
• Blockchain Data Querying:
• Develop modules to query on-chain orderbook state from the Cardano blockchain.
• Set up connections to Cardano nodes or APIs for reliable data retrieval.
• Database Setup:
• Implement a database system to store and manage open orders and trade history.
• Ensure the database can handle real-time updates and maintain data integrity.
• API Development:
• Create initial API endpoints to serve orderbook data to the frontend.
• Document API specifications for ease of integration.

B: Acceptance Criteria

• Backend architecture is designed with clear documentation.
• Modules for on-chain data querying and database management are implemented and tested with sample data.
• APIs are operational, allowing retrieval of orderbook data (currently with test data).

C: Evidence of Milestone Completion

• Backend code available in the repository with architectural diagrams and module descriptions.
• Initial API documentation provided.
• Test results demonstrating successful data retrieval and storage.

Milestone 3: Milestone 3: Integration of Backend with Frontend

A: Milestone Outputs

• Frontend Updates:
• API Integration:
• Modify the frontend to fetch real orderbook data from the backend APIs.
• Update UI components to display live data from the database.
• Transaction Construction:
• Implement logic for constructing transactions for order submission and cancellation.
• Integrate wallet connectivity to allow users to sign transactions via their browser wallets.
• Backend Enhancements:
• Real-Time Data Handling:
• Ensure the backend provides up-to-date orderbook data to the frontend.
• API Expansion:
• Enhance APIs to support transaction-related requests from the frontend.

B: Acceptance Criteria

• Frontend successfully communicates with the backend, displaying real-time orderbook data.
• Users can submit and cancel orders through the frontend, with transactions properly constructed and sent to the blockchain (on testnet).
• Wallet integration is functional, allowing users to sign transactions.
• Data synchronization between frontend and backend is reliable and efficient.

C: Evidence of Milestone Completion

• Working demo showcasing live data interaction and transaction processes.
• Updated repositories with integrated frontend and backend code.
• User testing reports confirming functionality of order submission and cancellation.

Milestone 4: Milestone 4: Implement Matchmaking and Order Matching Logic in Backend

A: Milestone Outputs

• Backend Development:
• Matchmaker Module:
• Develop the matchmaking engine to scan the orderbook, identify matching buy and sell orders, and optimize trade execution.
• Implement algorithms to handle order matching efficiently and fairly.
• Transaction Construction and Submission:
• Build functionality to construct matching transactions based on identified order pairs.
• Enable automatic submission of these transactions to the Cardano blockchain.
• Order State Management:
• Update the database to reflect matched and completed orders.
• Ensure accurate tracking of order statuses.
• Frontend Updates:
• Display Matched Trades:
• Update UI to show matched trades and provide users with status updates on their orders.
• Implement notifications for order execution and fulfillment.
• API Enhancements:
• Additional Endpoints:
• Create APIs for the frontend to receive updates on matched orders and trade confirmations.

B: Acceptance Criteria

• Backend successfully matches orders and executes trades on the testnet.
• Frontend displays updated order statuses and matched trade information.
• Matchmaking engine operates efficiently without significant delays.

C: Evidence of Milestone Completion

• Documented test trades showing successful order matching and execution.
• Code updates reflecting the addition of the matchmaking engine.
• Demonstrations or videos of the matchmaking process in action.

Milestone 5: Milestone 5: Finalize Integration and Comprehensive Testing

A: Milestone Outputs

• System Integration:
• End-to-End Functionality:
• Ensure all components (frontend, backend, database, APIs, matchmaker) work together seamlessly.
• Conduct thorough testing to identify and fix bugs or issues.
• Performance Optimization:
• Optimize code for speed and resource efficiency.
• Enhance scalability to handle increased user load.
• Deployment Scripts:
• Create scripts or tools to simplify the deployment process for new users.

B: Acceptance Criteria

• Fully functional orderbook DEX interface is ready for deployment.
• Documentation is complete, thorough, and user-friendly.
• Deployment process is streamlined and requires minimal configuration.

C: Evidence of Milestone Completion

• Release of the complete codebase under an open-source license.
• Availability of all documentation and deployment tools.
• Final demonstration of the DEX showcasing all features.

Final Milestone: Final Milestone: Project Close-out Report and Summary Video

A: Milestone Outputs

• Project Reporting:
• Close-out Report:
• Compile a detailed report covering project objectives, development process, milestones achieved, challenges overcome, and future recommendations.
• Summary Video:
• Produce video summarizing the project’s achievements.
• Highlight key features, demonstrate functionality, and explain how others can use and build upon the project.

B: Acceptance Criteria

• Submission of the Project Close-out Report meeting all Catalyst requirements.
• Completion of summary video suitable for sharing with the Cardano community.

C: Evidence of Milestone Completion

• Project Close-out Report submitted and publicly available.
• Summary video published online.

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

Our project team consists of experienced developers:

• Chris: Frontend Developer & Management
• Pascal: Frontend & Backend Developer, Tech Lead
• Philip: Backend Developer, Orderbook Expert
• Josh: Frontend Developer, Design Expert
• Patrick: Backend Developer, Analytics Expert

Each member brings specialized skills essential for the project's success. We have a proven track record of delivering high-quality DEX solutions and are prepared to collaborate effectively to achieve our objectives.

Please provide a cost breakdown of the proposed work and resources

All costs are allocated to developer salaries, with estimations for each milestone:

• Milestone 1: 40,000 ADA (Frontend development of prototype UI)
• Milestone 2: 40,000 ADA (Backend development initiation)
• Milestone 3: 35,000 ADA (Integration of backend and frontend)
• Milestone 4: 30,000 ADA (Implementation of swap logic in backend)
• Milestone 5: 35,000 ADA (Finalization and preparation for open-source release)
• Final Milestone: 15,000 ADA (Project close-out reporting and documentation)

Each milestone cost covers the proportionate time and effort required from our developers to complete the tasks.

No dependencies.

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

By providing a fully open-source framework for an orderbook DEX, our project offers significant value to the Cardano ecosystem. The investment will empower countless developers and projects to build upon our work, fostering innovation and growth within the DeFi space on Cardano.

The developer salaries are aligned with industry standards, ensuring efficient use of funds without unnecessary expenditure. This focused investment in developer expertise maximizes the potential impact, offering a scalable solution that benefits the wider community.