Please describe your proposed solution.
Our solution addresses the inefficiencies and security concerns of cross-chain swaps on Cardano by integrating Blueshift's Bridgeless Cross-Chain Protocol. This unique protocol accelerates transaction speed to 10 seconds, eliminates the need for asset wrapping, and simplifies user experience with one-click trading. By inviting Cardano community members to become liquidity farmers and validators, we foster active participation and community growth. Successful integration will enhance Cardano's interoperability, making it more appealing to users and developers, and reinforcing its position in the blockchain landscape.
Our approach is based on Blues Chain - an application-specific blockchain that our team has built and launched into production in May 2023. Blues Chain is a layer zero settlement network for all cross-chain operations within Blueshift. The logic of cross-chain operations are based on Blueshift portfolios first introduced on Milkomeda C1 blockchain in 2022. With the settlement layer we can achieve a consistent view of portfolio reserves on all supported blockchains and thus create a notion of Cross-Chain Portfolios (CCP). Benefits of CCPs compared to other existing solutions are: native cross-chain swaps without asset wrapping (e.g. swap directly ADA to MATIC), cross-chain liquidity aggregation (users can provide liquidity from all connected blockchains to the same CCP), low impermanent loss, protection against flash loan attacks and low quality assets, single-sided liquidity provisioning.
All Cardano users seeking interoperability with other ecosystems (such as Ethereum, Polygon, Algorand, Kava) will be engaged by the project. It already demonstrates the impact on Milkomeda C1 (layer 2 sidechain for Cardano) by allowing direct swaps of ADA and MATIC and other many other assets. This is the first solution for the Cardano ecosystem that does not involve centralized exchanges. When the proposed solution is implemented, this feature will become available for Cardano users without the need of Milkomeda.
How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?
By integrating Blueshift's Bridgeless Cross-Chain Protocol, our solution targets the challenges of slow, insecure, and complex cross-chain swaps in the Cardano ecosystem. This is vital as it aligns with Cardano's mission of being a robust, efficient, and user-friendly platform.
This implementation is ripe for adoption due to existing infrastructure and growing interest in faster, more secure token swaps. Blueshift's protocol uniquely combines speed, security, and ease-of-use, thus providing a superior alternative to current centralized providers.
Our solution enhances interoperability, fostering a seamless and connected experience across different ecosystems. It not only improves existing products and integrations but also enriches the user experience, offering more options for cross-chain swaps.
Quantifying the impact, with thousands of active users and an impressive Total Value Locked (TVL), Blueshift's integration will draw more users to the Cardano community. It will strengthen the ecosystem, resolve a key issue, and bolster Cardano's position in the blockchain world.
How do you intend to measure the success of your project?
The success of our project will be gauged through a blend of quantitative and qualitative metrics, reflecting the benefits brought to the Cardano ecosystem:
- Quantitative Metrics:
- User Adoption: The number of users utilizing Blueshift's Bridgeless Cross-Chain Protocol on Cardano. A significant increase indicates successful integration.
- Total Value Locked (TVL): The TVL in our protocol serves as a clear indicator of the trust and utility value our solution provides.
- Transaction Speed: Measuring the average time for cross-chain swaps will quantify the improved efficiency.
- Increase in Cross-Chain Swaps: An uptick indicates enhanced user experience and adoption.
- Qualitative Metrics:
- User Feedback: Opinions gathered from users about the ease, speed, and security of our solution will offer valuable insights into its real-world impact.
- Ecosystem Reception: Positive acknowledgement and collaboration requests from other projects within the Cardano ecosystem would signify our solution's relevance and effectiveness.
The project's short-term productivity effects include improved transaction speed and security, fostering immediate growth by attracting more users. Long-term, the increased interoperability we provide will strengthen Cardano's position as a leading, user-friendly blockchain platform, driving sustained growth.
Please describe your plans to share the outputs and results of your project?
We're committed to transparency and community engagement. Post-implementation, we'll actively share our project's outputs, results, and opportunities:
- Regular Updates: Through our official website, blog, and social media channels, we'll disseminate progress reports, user testimonials, and case studies. We aim to keep the community informed and engaged.
- Community AMAs: We'll host regular Ask-Me-Anything sessions. These platforms also serve as an avenue to share future plans.
- Collaboration: We'll share our results with other projects within the Cardano ecosystem and blockchain space at large. This encourages collaboration and mutual growth.
- We’ll continue crafting with the community's help two main indices: the Cardano Index and the Cardano Startup Index. Both indices will reflect Cardano’s performance as a snapshot of the performance of its established and promising projects, respectively. All listed projects will be able to get cross-chain exposure.