Bridgeless Cross-Chain Swaps in 1 click for Cardano

[IMPACT] 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.

[IMPACT] 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.

[IMPACT] 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.

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.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

Our team at Blueshift has a proven track record of delivering complex blockchain projects successfully and on time. Our CEO, Igor Mikhalev, is an ex-Director and Blockchain Lead at BCG and has extensive experience in blockchain development and deployment. We've also secured a strong collaboration with EY, MIT, the University of Amsterdam, and other institutions, showcasing our credibility and commitment to quality.

Blueshift has already connected Polygon and Cardano successfully, which was showcased at May’s edition of the Cardano360. We’re now working on integrating Algorand and Kava. This demonstrates our capability to deliver on our promises.

In conclusion, our technical expertise, experience, strong financial management, and commitment to transparency and accountability make us an excellent choice for executing this project successfully.

Our collaborative effort with the Cardano community in creating the Cardano Index, the top portfolio on Blueshift, has yielded impressive results. It has achieved x2 growth in TVL and a 250% increase in the LP token price, demonstrating its value and utility within the Cardano ecosystem. The Cardano community participated in its creation, leaving over 850 organic comments, suggesting portfolio composition and now is benefiting from its growth. The Cardano Index portfolio represents the best projects on Cardano and represents a unique opportunity to attract new users to Cardano via our Cross-Chain Protocol.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

Our primary objectives are to:

Integrate Blueshift's Bridgeless Cross-Chain Protocol into the Cardano ecosystem, enhancing cross-chain interoperability, speed, and security.
Increase transaction volume by at least 50% within six months post-integration, which is a key quantitative measure of our success.
Connect Cardano with Ethereum, Arbitrum, Optimizm, zkSync, Neon, BNB, Algorand, and Kava

Improve user experience in terms of speed (sub-10-second trades) and simplicity (one-click trading), fostering greater user engagement and adoption of our protocol.

To validate feasibility, we'll monitor and measure transaction volumes and user feedback post-integration, seeking continual improvement based on data analysis and community feedback.

The technical implementation will be undertaken by our seasoned team, who have the requisite blockchain experience and a proven track record in the execution of similar scale projects. We will adopt an agile development approach, allowing us to iterate and adapt to any technical challenges that might arise during the course of the integration.

[CAPABILITY/ FEASIBILITY] 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. Technical design - August 2023. Cost 10,000 ADA.
Create the solution architecture.
Describe flows for major cross-chain operations (SWAP, DEPOSIT, WITHDRAW) in terms of the Cardano EUTXO model.
Create the visual and UX design.
Milestone 2. Testnet deployment - September 2023. Cost 10,000 ADA.
Build the first version of Plutus scripts.
Deploy the scripts in the Cardano testnet.
Build the first version of UI.
Perform QA tests.
Milestone 3. Mainnet launch - October 2023. Cost 10,000 ADA.
Finalize the development.
Deploy the scripts in the Cardano mainnet.
Launch the solution into production.
Attract the initial liquidity to the cross-chain portfolio on Cardano.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.
Milestone 1 (Technical design) deliverables:
Architecture document
Documentation on the cross-chain operation flows.
Visual design layouts.
Milestone 2 (Testnet deployment) deliverables:
Specifications of the Plutus scripts.
Testnet deployment (UI and blockchain back-end).
Milestone 3 (Mainnet launch) deliverables:
Source code of the Plutus scripts.
Mainnet deployment (UI and blockchain back-end).
Whitepaper.

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

Development costs

Project management and analytics - 0.5 man-month = 2,500 ADA
Front-end development - 1.5 man-month = 7,500 ADA
Visual & UX design - 1 man-month = 5,000 ADA
Blockchain (Plutus) development - 2 man-months = 10,000 ADA
QA - 2 man-months = 5,000 ADA

[RESOURCES & VALUE FOR MONEY] Who is in the project team and what are their roles?

Igor Mikhalev

Co-Founder, CEO

MBA, MSc, PhD ong

Raised $3.5M, designed fair launch, led development

of Cardano's DCF, created blockchain-based KYC network.

Dr. Sebastian Kortmann

Product Strategy Director

PhD in Business Administration

A Top 40 under 40 best Business School professor, consulted/trained for top firms, mentored +50 startups.

Xena Chernikova

Marketing Director

MBA, MSc

Spearheaded creation of ecosystem indexes, worked with family offices, led Forbes award-winning hospitality startup.

Dr. Igor Struchkov

CTO

PhD in Computer Science

Authored several DeFi protocols, participated in the blockchain-based KYC platform, launched several DApps

Managing a team of developers, responsible for technical execution

Dr. Alexey Lukashin

Co-Founder, COO

PhD in Computer Science

Operational director with a wide expertise in blockchain, parallel/distributed systems, and cloud architecture.

Bogdan Timberg

Product Manager

BA in Business Administration

Raised $5M, launched two AMM DEXes, participated in AMM/DEX agent-based modeling, built communities.

Peter Bui

Digital Content Creator

BA in Information Technology

Web3 expert, recognized as the Cardano Ambassador 2022, excelling in fostering community engagement, while also being an esteemed educator in the blockchain and cryptocurrency space.

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Our cost is a well-calculated estimate based on industry norms, development complexity, and the potential value add to the Cardano ecosystem. Considering the significant benefits, such as lightning-fast cross-chain swaps, increased security, and improved user experience, the cost is justified. We leverage the expertise of an experienced team who will work diligently to provide a solution that strengthens the Cardano ecosystem, ensuring value for every ADA spent. Every cost component is focused on delivering a top-tier protocol that will enhance Cardano's interoperability, driving user growth and ecosystem expansion

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