[SOLUTION] Please describe your proposed solution.

Background on the Gummiworm protocol

The Gummiworm protocol is a protocol being designed by Sundae Labs to enable non-custodial, secure, and high throughput off-chain transaction volume for DeFi protocols. It builds on the high quality engineering of the Hydra protocol, but making different trade-offs better suited to DeFi use cases.

Given the demand for efficient and secure DeFi transactions, we hypothesize that by offering a reliable and user-friendly protocol like Gummiworm on the Cardano blockchain, we could enhance user experience and drive wider DeFi adoption. We can validate this hypothesis by gauging user feedback, monitoring adoption rates, and observing transaction volumes.

At Sundae Labs, we’ve been prototyping the Gummiworm Protocol on-and-off for a year, and are now ready to develop a specification for the protocol.

Our proposed solution:

This project focuses on authoring and soliciting feedback on a comprehensive specification for the Gummiworm protocol which will address the following components in detail:

• Definition and roles of different actors within the protocol.
• Specification of software components and their interactions.
• Communication protocols including message formats and sequencing.
• Wire transport formats to ensure efficient data exchange.
• User flow diagrams for various scenarios within the protocol.
• Security arguments for protocol resilience and fund safety.

This document will be shared broadly to solicit feedback to ensure maximal security, interoperability, and scalability.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

• Establish a clear roadmap for future development of the Gummiworm protocol.

• Facilitate efficient integration of the protocol with existing Cardano infrastructure.

• Measurable Impact: Adoption rate of the specification by developers and subsequent development projects.

• Sharing Outputs: Publishing the specification for community access and feedback.

  [CAPABILITY & FEASIBILITY] 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?

• Team of experienced blockchain protocol architects and technical writers.

• In-depth knowledge of Cardano's existing infrastructure and protocol requirements.

• Validation through expert reviews and community feedback on draft versions.

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

Initial Draft of Protocol Actors and Software Components

• Outputs:
• A document outlining the roles of different actors within the Gummiworm protocol
• A description of the software components involved
• A description of the user-flows for deposit, transact, contest, and withdrawal
• Acceptance Criteria:
• The document should comprehensively cover all anticipated actors and software components with clear definitions and roles
• The document should outline the security argument for the soundness of the protocol
• Evidence of Completion:
• A draft document ready for review by the project team and select community members

>Detailed Communication Protocols and Wire Transport Formats

• Outputs:
• Extend the specification to cover file and wire formats for the relevant communication protocols
• Acceptance Criteria:
• The specifications should be clear, technically sound, and align with industry standards where applicable.
• They should detail the message and file formats, and the benefits of the choices made in designing those formats.
• Evidence of Completion:
• A section within the specification document that outlines these protocols and formats, ready for peer review and technical validation.

>Security Argument

• Outputs:
• An extended specification which makes strong security arguments for each user flow
• Feedback solicited from industry experts
• Acceptance Criteria:
• Each user flow should have a corresponding security argument
• The security arguments should be reviewed by several builders in the Cardano community
• The security argument should consider happy paths and degenerate situations
• The security argument should be convincing
• Evidence of Completion:
• The extended specification
• Aggregated feedback from respected community members

>Final Milestone: Final Review, Revision, and Publication of Complete Specification

• Outputs: The final, comprehensive specification document for the Gummiworm protocol.

• Acceptance Criteria: The document should be thorough, accurate, and reflective of all the inputs from previous milestones. It should be well-organized, professionally written, and ready for public dissemination.

• Evidence of Completion: A published specification document, available to the Cardano community and other stakeholders, along with a formal announcement and presentation of the work completed.

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

• Lead Protocol Architect: Pi Lanningham

• Quality Assurance and Review Specialists

  [BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

Market Rates

• Specification Development: $30,000
• Project Management: $5,000
• Documentation and Reporting: $5,000
• Total: $40,000

Discounted Catalyst Ask

• Specification Development: $20,000
• Project Management: $5,000
• Documentation and Reporting: $5,000
• Total: $30,000

Using a conservative $0.30 per ADA, this is 100,000 ADA total

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

• The investment in this specification will catalyze future development on the Gummiworm protocol
• The meticulous detail in the specification ensures that subsequent development efforts are streamlined, reducing overall development costs and time
• The specification will serve as educational material for those looking to build with Gummiworm, or even those looking to design their own protocols