Please describe your proposed solution.

A comprehensive smart contract audit of Indigo Protocol V2 by MLabs, a team with proven expertise in smart contract auditing. Here's a detailed description:

1. Audit Scope and Team: The audit will be performed by MLabs, the same team that successfully audited the Indigo Protocol V1. This ensures continuity and a deep understanding of the protocol's architecture. The team's expertise in Plutus, Aiken, and DeFi domains is particularly relevant for this audit.
2. Objectives of the Audit:
3. Security: To ensure that V2 retains the robust security properties of V1, thereby safeguarding user assets and maintaining trust in the protocol.
4. Efficiency and Performance: Assessing the smart contracts for higher throughput and reduced overhead, which are key enhancements in V2.
5. Integration of New iAssets: Evaluating the integration of additional iAssets into the Cardano DeFi ecosystem, focusing on seamless and secure implementation.
6. Methodology:
7. Comprehensive Review: The audit will involve a line-by-line examination of the Aiken smart contracts to identify any potential security vulnerabilities, inefficiencies, or bugs.
8. Testing and Validation: Employing a range of testing methodologies, including static analysis, dynamic analysis, and manual review techniques, to ensure thorough validation of the smart contracts.
9. Deliverables:
10. Audit Report: A detailed report will be published at the end of the audit, providing insights into the audit process, findings, and recommendations.
11. Open Sourced Contracts: Post-audit, the Aiken smart contracts will be open-sourced, promoting transparency and community trust.
12. Timeline and Budget:
13. The audit is anticipated to take approximately one month, with a budget of $150,000 USD.

This solution aims to strengthen the security and efficiency of Indigo Protocol V2, fostering trust and growth within the Cardano ecosystem. The emphasis on continuity (using the same audit team), expertise, and a detailed, transparent auditing process are key highlights of this proposal.

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

The proposed audit of Indigo Protocol V2 will have several positive impacts on the wider Cardano community:

1. Enhanced Security and Trust: By rigorously auditing the V2 smart contracts, the project ensures the security and integrity of the Indigo Protocol, which is crucial for maintaining user trust. In a landscape where security breaches can significantly undermine confidence in blockchain ecosystems, a thorough audit by a reputable team like MLabs reinforces the reliability of the Cardano platform.
2. Increased Throughput and Efficiency: The focus on higher throughput and reduced overhead in Indigo Transactions will directly benefit users by offering faster, more cost-effective interactions. This improvement aligns with Cardano's objectives of scalability and efficiency, enhancing the overall user experience within the ecosystem.
3. Expansion of the DeFi Ecosystem: Introducing more iAssets to the Cardano DeFi ecosystem broadens the range of financial instruments and opportunities available to users. This diversification not only attracts new users and developers but also fosters innovation and growth within the Cardano community.
4. Open Source Contribution: By making the audited Aiken smart contracts open source, the project contributes to the Cardano community's knowledge base. This openness encourages collaboration, learning, and further development, aligning with the ethos of the blockchain and open-source communities.
5. Demonstrating Best Practices: The project sets a precedent for responsible and transparent development practices within the Cardano ecosystem. By employing an experienced audit team and committing to a comprehensive audit process, Indigo Labs showcases the importance of security and diligence, encouraging other projects in the ecosystem to follow suit.
6. Long-Term Reliability and Sustainability: Ensuring that Indigo Protocol V2 retains the security properties of V1 while introducing new features and improvements demonstrates a commitment to long-term reliability and sustainability. This approach strengthens the Cardano ecosystem's reputation as a secure and stable platform for DeFi applications.
7. Indigo Protocol V2 introduces a redemption mechanism for all iAssets, more specifically iUSD, to help stabilize its peg. At the time of this proposal, iUSD is the most liquid stablecoin solution supporting the Cardano ecosystem and is paramount to the future of DeFi expansion on Cardano.

Overall, the Indigo Protocol V2 audit represents a significant step towards enhancing the security, efficiency, and diversity of the Cardano DeFi ecosystem, fostering a more robust, trusted, and innovative community.

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?

The capability to deliver the Indigo Protocol V2 audit project with high levels of trust and accountability is supported by several key factors:

1. Proven Track Record and Expertise: Indigo Labs, with its background in Plutus, Aiken, and DeFi domain expertise, has already successfully launched Indigo Protocol V1. This prior experience, coupled with the successful audit of V1 by MLabs, demonstrates a strong track record in delivering secure and reliable smart contract solutions.
2. Experienced Audit Partner: MLabs, the chosen audit partner, has proven expertise in smart contract audits, especially within the Cardano ecosystem. Their previous work on Indigo Protocol V1 adds to the trust and accountability, as they are already familiar with the project's architecture and standards.

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

Finalize testsuite and documentation.

>Completion of V2 audit, executive summary as evidence.

>Completion of upgrade path audit, executive as evidence.

>Deploy V2 upgrade to mainnet.

>Publish audit report and summary.

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

Eric Coley - CEO

Cody Butz - CTO

Please provide a cost breakdown of the proposed work and resources.

The Indigo Protocol V2 Audit will be performed by the same team who audited the V1 smart contracts, MLabs Audit team. This team will audit the V2 smart contracts as well as the smart contract upgrades. We anticipate that this will take roughly 1 month to complete and a total of $150k USD.

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

V2 intends on bringing the following value to the Cardano ecosystem:

• Higher Throughput and less overhead for Indigo Transactions
• The same security properties of V1
• Bringing more iAssets to the Cardano DeFi ecosystem