Please describe your proposed solution.

While this proposal is intended to solicit funds for only the audit of our updated smart contracts, we feel it's helpful to highlight why we've revamped our contracts. Our new contracts include:

1. Leveraging New Cardano Features: By harnessing new features and capabilities of the Cardano blockchain, SundaeSwap aims to enhance the efficiency and cost-effectiveness of transactions on the DEX. These improvements not only benefit users in terms of faster and cheaper operations but also ensure that the platform keeps pace with the evolving Cardano ecosystem.
2. Code Clean-up: To streamline the platform, SundaeSwap has eliminated portions of redundant or unused code from its smart contracts. This clean-up results in leaner, more manageable contracts that are easier to audit and maintain.
3. Refactoring Contract Structures: SundaeSwap has identified and rectified contract structures that have proven to be operationally inefficient or expensive, such as the handling of scooper rewards. These adjustments reduce friction and improve the user experience on the platform.
4. New Feature Addition: SundaeSwap is incorporating new, user-requested features that don't fundamentally change the operation of the protocol, thereby enhancing the platform's functionality without significantly impacting audit complexity or user confidence in the system's correctness.

To verify the security, reliability, and correctness of these enhancements, SundaeSwap seeks funding to carry out a comprehensive audit of the updated smart contracts. This audit will instill confidence among users and stakeholders about the effectiveness of the improvements, ultimately contributing to a healthier, more robust Cardano DeFi ecosystem.

How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Our smart contracts upgrade enriches the Cardano ecosystem by enhancing the efficiency, security, and user experience of DeFi operations. By leveraging new Cardano features, optimizing code, and refining processes, we aim to set a higher standard for DEXs, driving wider adoption. Our commitment to a comprehensive audit not only fortifies trust in SundaeSwap, but also promotes a culture of transparency and security within the Cardano DeFi space.

How do you intend to measure the success of your project?

Audit Results: A positive security audit with no critical issues would be a clear measure of success, indicating the secure implementation of the smart contract updates.

Please describe your plans to share the outputs and results of your project?

Public Audit Report: We'll publish the audit report on our website and other platforms. It's crucial to us that everyone has access to this information and can see how secure and efficient our updated smart contracts are.

Medium/Blog Posts: We plan to write a series of blog posts explaining what updates we've made, why we've made them, and how they improve SundaeSwap. We'll strive to keep the language clear and non-technical so everyone can understand.

What is your capability to deliver your project with high levels of trust and accountability?

Sundae Labs is a proven and trusted contributor to the Cardano Ecosystem. We built the first AMM DEX on Cardano, and supply turnkey Rewards and Governance products/services to other high-profile projects in the Cardano ecosystem. Additionally, we actively support various ad-hoc activities like Cardano security and scalability R&D. We also contribute actively to ongoing IOG initiatives like Voltaire and other core tech topics of discussion. Learn more at <https://sundae.fi>.

What are the main goals for the project and how will you validate if your approach is feasible?

The main goal of auditing our smarts contracts is to ensure their security. The upgraded smart contracts should pass a comprehensive security audit, validating their reliability and instilling confidence in the user community.

Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Milestone 1: Audit Preparation

• Identify and leverage new Cardano features to improve transaction efficiency.
• Remove unused or redundant parts of the smart contracts.
• Develop and integrate the new features into the smart contracts.
• Refactor problematic contract structures, such as the scooper rewards mechanism.
• Test the updated smart contracts on a testnet and gather feedback from a subset of users.
• Make necessary tweaks and improvements based on the feedback and test results.
• Document all changes, the reasons behind them, and their implications for users and the system in preparation for the audit.
• Select audit partner

Milestone 2: Security Audit

• Submit the updated smart contracts and accompanying documents for a security audit.
• Collaborate with the auditors to address any issues they identify, ensuring the security and correctness of the contracts.

Milestone 3: Post-Audit Deployment and Evaluation

• Deploy the audited smart contracts on the mainnet.
• Inform users about the changes and new features through guides, blog posts, and videos.
• Monitor key performance metrics to evaluate the success of the project.
• Collect user feedback post-launch to identify areas for future improvements.
• Plan for continued development and improvement based on the evaluation and feedback.

Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1: Audit Preparation

• Deliverables: Fully updated and internally tested smart contracts.
• Outputs: Detailed report of changes made, test results, and feedback gathered.
• Intended Outcomes: Prepared and optimized smart contracts ready for an external audit. Users informed and prepared for the upcoming changes.

Milestone 2: Security Audit

• Deliverables: Audited smart contracts with any necessary modifications completed.
• Outputs: Detailed security audit report, outlining the security, efficiency, and functionality of the updated smart contracts.
• Intended Outcomes: Verified assurance of the security and functionality of the updated smart contracts, boosting user confidence and stakeholder trust.

Milestone 3: Post-Audit Deployment and Evaluation

• Deliverables: Deployed audited smart contracts on the mainnet. User guides, blog posts, and videos explaining the updates.
• Outputs: Launch announcement, user feedback, and initial performance metrics.
• Intended Outcomes: A smoothly running DEX with improved efficiency, user experience, and security. Increased user engagement and satisfaction. A solid foundation for future improvements based on user feedback and performance metrics.

Please provide a detailed budget breakdown of the proposed work and resources.

$50k USD / 167,000 ADA

Note that this is the upper-bound on quotes we've been given; We plan to aggressively negotiate with several reputable auditors, and ask Catalyst to only distribute the funds needed to cover the final audit. Any remaining funds will be available for future catalyst rounds.

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

The Sundae Labs smart contract rewrite project was performed by the Sundae Labs team, housed and primarily based in the US, but with team members also located in Europe and South America. The actual security audit will be performed by an established and trusted partner in the Cardano ecosystem.

Our CTO, Pi Lanningham (AKA @Quantumplation), is an active contributor to the Cardano ecosystem. He's an advisor on many large protocols, such as ADA Handle, Liqwid, and Atrium. He's been elected to the Indigo technical working group, gave three technical talks at last year's Cardano Summit, has recently hosted two community Voltaire workshops. He contributes broadly across the Cardano open source ecosystem.

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

This project represents excellent value for money for the Cardano ecosystem by supporting SundaeSwap's launch of its new smart contracts, that deliver:

1. Improved Efficiency: By optimizing the SundaeSwap platform, we are setting a higher standard for DEXs on Cardano. The lessons learned and methods developed can be applied to other projects, boosting the efficiency of the entire ecosystem.
2. Enhanced User Experience: The planned improvements aim to make SundaeSwap more user-friendly, encouraging wider adoption of the DEX and possibly the Cardano ecosystem as a whole. A thriving DEX can attract more users to Cardano, increasing the utility and value of ADA.
3. Stronger Security: By funding a thorough security audit, we are ensuring the integrity of the platform and protecting users' assets. This cultivates trust, a critical factor for growth in the DeFi space.
4. Innovation and Learning: The challenges we overcome and the innovations we develop during this project contribute to the collective knowledge of the Cardano community. This knowledge can spur further innovation and accelerate the evolution of the ecosystem.
5. Transparency and Governance: Our open approach to this upgrade, including sharing our results and seeking community input, can serve as a model for transparency and community governance in the Cardano ecosystem.

In essence, this investment is not just in SundaeSwap, but in the entire Cardano ecosystem's capacity to host secure, efficient, and user-friendly DeFi platforms.