[IMPACT] Please describe your proposed solution.

• In developing countries, energy is monopolized in most cases by governmental utilities and are failing in electrifying their citizens (2 out of 3 Africans lack access to reliable electricity). As worldwide targets are to reach high electrification rates by 2030 in African countries, the private sector is leading this mission. However, funding energy projects is still challenging due to the long paperwork process and hard access to investment. Moreover, regulatory frameworks set by governments don’t incentivize consumers to participate in energy production. Renewable energy is the cheapest eco-friendly energy solution combined with high technology is the effective solution for this crisis.

• Lightency is an internet of energy startup that bridges the gap between the energy sector and Blockchain technology through its token, Light. It is actively working on two complementary but independent products. The first is powerchain, a decentralized marketplace that tokenizes energy data to enable peer-to-peer energy exchange and certification with dynamic pricing. The second solution is a reserve energy fund that interacts with borrowing protocols to fund green projects. The fund is governed by a DAO and allows the fund participators to create a huge impact by actively participating in increasing energy access around the world. Investors can also make a profit by earning high returns since Light holders can get up to 31% APY. Lightency’s token will be the fuel to Powerchain hence its utility.

• Our target customers are crypto investors for the DEFI protocol and the energy distributors for Powerchain.

  [IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

• Lightency is helping to build a better Africa using Cardano network. ADA holders will be able to participate in the mission of electrifying Africa while earning attractive Yield.

• The end customers, who are mostly unbanked, will have a digital identity on the Cardano network.

  [IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

<u>Macro Risk:</u> Operating in African countries presents its risks, such as political uncertainty.

Mitigation:

• The urgent need for electricity lowers the risk in itself.
• The local partners and end-consumers will own the physical asset.

<u>Operational / Economic Risks:</u> Revenue Generation in some African countries is not a granted process. Government's cooperation is sometimes very slow.

Mitigation:

• Preference to work in countries where central banks issued a digital currency (CDBC).
• Incorporating a Mauritius based company as the country has agreements with most of african countries. This will ease the process of any profit generation.

***<u>Cryptocurrency Risk: </u>***Volatility is a threat to Lightency’s business model. Using cryptocurrencies as collateral can create a risk of liquidation, considering the market volatility. A good risk management is mandatory to operate.

Mitigation:

• Allocating 16% of Lightency tokens to balance the liquidity pool in case of big crypto volatility.

• Collaborating with market makers and liquidity providers is key to avoid any liquidation of the collateral.

• Treasury fund will be backed mostly by stablecoins

  [FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

Tasks: Timeline for the next 3 months and a half : 14 weeks and 4 days

1.Project Management and Coordination:

• Estimated Time Needed: 2 weeks

2. Create Tokens and Locked Tokens:

• Develop smart contracts to create and mint tokens.
• Develop smart contract to create locked token + Vesting
• Test and validation
• Estimated Time Needed: 1 week

3.Connect and create wallet:

• Interact with Cardano SDK to connect wallet
• Test and validation
• Estimated Time Needed: 1 week

4.Create a DAO:

• Develop smart contract to manage different types of proposals (Pool, Fund transfer/Fund project )
• Interact with Cardano blockchain (sign and execute transaction)
• Design user friendly form
• Test and validation
• Estimated Time Needed: 3 week

5.Borrow money:

• DAO proposal to borrow a stable coin from a borrowing protocol on Cardano and Ethereum using Ethereum bridge.
• Test and validation
• Estimated Time Needed: 2 weeks

6.Swap Tokens:

• Creating liquidity pool and swap functionality
• Interact with smart contract
• Frontend
• Design
• Test and validation
• Estimated Time Needed: 4 days

7.Reserve Currency Deployment:

• Estimated Time Needed: 3 week

8. Stake/Unstake Crypto:

• Estimated Time Needed: 2 week

  [FEASIBILITY] Please provide a detailed budget breakdown.

1.Project Management and Coordination:

• Estimated Time Needed: 2 weeks
• <u>Resources:</u> Project Manager
• <u>Budget:</u> 4000 dollars

2. Create Tokens and Locked Tokens:

• Estimated Time Needed: 1 week
• <u>Resources:</u> Blockchain developer
• <u>Budget:</u> 2000 dollars

3.Connect and create wallet:

• Estimated Time Needed: 1 week
• <u>Resources:</u> Front end developer, UX designer and back end developer
• <u>Budget:</u> 2000 dollars

4.Create a DAO:

• Estimated Time Needed: 3 week
• <u>Resources:</u> Blockchain developer, full stack developer and front end developer
• <u>Budget:</u> 6000 dollars

5.Borrow money:

• Estimated Time Needed: 2 weeks
• <u>Resources:</u> Blockchain developer, full stack developer and front end developer
• <u>Budget:</u> 4000 dollars

6.Swap Tokens:

• Estimated Time Needed: 4 days
• <u>Resources:</u> Full stack developer
• <u>Budget:</u> 1500 dollars

7.Reserve Currency Deployment:

• Estimated Time Needed: 3 weeks
• <u>Resources:</u> Blockchain developer, full stack developer and front end developer
• <u>Budget:</u> 6000 dollars

8. Stake/Unstake Crypto:

• Estimated Time Needed: 2 weeks

• <u>Resources:</u> Blockchain developer, full stack developer and front end developer

• <u>Budget:</u> 4000 dollars

  [FEASIBILITY] Please provide details of the people who will work on the project.

• jaafar Saied/CEO/Blockchain entrepreneur

• Mohamed Ali gam/CTO/energy expert

• Mohamed mnif/CFO/blockchain entrepreneur

• Ghada Amayri & Khaled Battiche (Tech background )

• Olfa Ayadi (Business Development)

  [FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

Potentially yes, if we need to finalize developing other features .

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

KPIs:

- Attract Cardano holders to participate in the treasury funds: Get at least 10 participants in the treasury funds.

- Mint at least one energy certification on Cardano.

- Link the Defi protocol with the Powerchain project.

[AUDITABILITY] What does success for this project look like?

This project would be considered successful if the treasury fund gets bigger exponentially. Reaching 1 million dollars after 12 months is a target we internally set up. This growth would mean that African communities are getting access to electricity, which is our main and initial goal.

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

No, it’s an entirely new one.

Sustainable Development Goals (SDG) Rating

• SDG 3: Good Health and Well-being
• SDG 6: Clean Water and sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and economic Growth
• SDG 11: Sustainable cities and communities
• SDG 13: Climate Action