Djed Osiris Stablecoin on Cardano's EVM Sidechain Milkomeda

not approved

Djed Osiris Stablecoin on Cardano's EVM Sidechain Milkomeda

₳224,212.00 _Requested

View on ideascale

Community Review Results (5 reviewers)

Impact / Alignment

Feasibility

Value for money

ソリューション

We have researched and implemented the Osiris version of the Djed stablecoin protocol to Milkomeda. The Osiris version improves the Minimal version in ways that make it more robust.

Problem:

Cardano and Milkomeda lacked a fully autonomous, zero-governance, decentralized, censorship-resistant, transparent and reliable stablecoin protocol. We have successfully addressed this need.

Yes Votes:

₳ 146,394,423

No Votes:

₳ 117,851,728

Votes Cast:

318

チーム

[IMPACT] Please describe your proposed solution.

The Djed family of stablecoin protocols is characterized by being crypto-backed and autonomous. Users can buy and sell stablecoins and reservecoins by interacting with the contract for prices that depend on an oracle and on the reserve ratio. The contract's algorithm aims to keep the reserve ratio significantly greater than 100%, thus ensuring that every stablecoin is backed by significantly more than 1 USD worth of ADA and can absorb significant price shocks. Stability theorems have been mathematically proven and formally verified, and the paper was accepted at the IEEE International Conference on Blockchain and Cryptocurrency.

Djed Operations

This implementation of a stablecoin protocol on Milkomeda is based on the Osiris version of Djed, which improves the Minimal version by allowing the sale of reservecoins even when the reserve ratio is below the minimum threshold, provided that stablecoins are simultaneously sold in a proportion that increases the reserve ratio. This makes it easier for the reserve ratio to recover and for the peg in secondary markets to be restored even in situations where the demand for stablecoins is high and the demand for reservecoins is low following a price shock (a situation that is currently affecting SigmaUSD and COTI's Djed, making them trade above the peg at secondary markets). This version also introduces maximum transaction limits, in order to reduce the wholesale discount effect described in the paper.

Our solution is composed of:

Fully immutable smart contracts, running on Milkomeda.
A frontend (accessible here: <https://milkomeda-c1.djed.one>) that has also been deployed to IPFS (InterPlanetary File System) and that can also be run locally by anyone.

Therefore, it is fully autonomous, zero-governance, not operated by anyone, censorship resistant, transparent (with code open to inspection and contributions), audited and rent-seeking-free.

To know more, watch our whiteboard animation video.

<https://youtu.be/XAalC8F6-SU>

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Stablecoins are explicitly listed here (<https://cardano.ideascale.com/c/campaigns/348/about>) as being of a type of project addressing the Products & Integrations challenge within the DeFi category.

As the challenge states, "Cardano needs a thriving ecosystem of different products and integrations for the community to use that increasingly become the better alternatives over current centralised providers". Djed Osiris on Milkomeda is the first fully decentralized (operator-free, governance-free, fully imutable) stablecoin protocol in the Cardano ecosystem, and thus directly addresses the challenge's statement.

Stablecoins are a foundational building block to enable DeFi to flourish on Cardano. Djed Osiris ensures that this foundation is strong and reliable.

[IMPACT] How do you intend to measure the success of your project?

We are focused on the following indicators of success:

Getting listed by major DEXes on Milkomeda.
A high TVL compared to the TVL on Milkomeda. (Based on SigmaUSD experience on Ergo, a TVL greater than 3% of Milkomeda's TVL could be considered a success.)
A high transaction volume, minting and burning stablecoins and reservecoins in interactions with the Djed Osiris contract.

The Djed Osiris stablecoin on Milkomeda will positively affect Cardano's productivity and growth in the following ways:

Since the protocol uses (m)ADA as a reserve asset, it creates extra utility for ADA.
It increases the demand for ADA, since ADA is needed to mint stablecoins and reservecoins.
Like any other stablecoin, Djed Osiris brings the typical use cases of stablecoins (e.g. payments, remittances, hedging against volatility, leveraging, …) to Milkomeda and Cardano. In contrast to other stablecoins, it does so in a fully autonomous, decentralized, immutable, governance-free way.

[IMPACT] Please describe your plans to share the outputs and results of your project?

The Djed Alliance is an open network of individuals and entities. Our already executed plans to share the outputs and results within this network and with the wider public include the following:

GitHub Repositories: the code that we have produced is available in the Djed Alliance's GitHub space.
Adoption by DEXes: we have engaged with DEXes on Milkomeda to get Djed Osiris listed in them, so that the DEXes themselves and their users can benefit from this stablecoin protocol.
Tweets: we informed the public of the outputs and results through the Djed Alliance's Twitter Account.
Discord: we maintain a Discord server for communication.

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

This project is already fully delivered.

Instead of waiting for Catalyst funding to start the project, we went ahead and already completely delivered the project. Instead of requiring the Cardano community to trust us, we trust the Cardano community to partially cover the development costs of a valuable project that has already been delivered.

We have faced unspeakable challenges in the delivery of this project. To overcome those challenges, we incurred high opportunity costs. But we did it! And we hope the Cardano community will appreciate it.

This project's delivery has been driven by this proposal's applicants, by anonymous contributors and by people affiliated with the following teams:

Bloxico: a company founded in 2018 by several blockchain and fintech experts with the goal of creating second to none software products in fintech and Web3 domain. Bloxico is focused on continuous innovation, always searching for new solutions that use Blockchain to revolutionize the way Business is done, with quality as a top priority. Bloxico has enjoyed an astonishing growth of 1152% since its inception. It currently gathers a team of 100+ highly skilled professionals and was recognized internationally by being ranked 9th on the Deloitte Technology Fast 50 Central Europe list. Bloxico is IOG’s known partner that contributed to several strategic projects, including COTI's Djed implemented in Plutus on the Cardano Blockchain.

AOSSIE: the Australian Open Source Software Innovation and Education association, a not-for-profit registered charity founded in 2016 and funded by Google Summer of Code every year to mentor students in open source software development of innovative projects.

Thespian: a full-cycle software development company founded in 2015.

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

The project's achieved goal was to have Djed Osiris launched on Milkomeda. This was accomplished on the 29th of April 2023.

[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.

Milestones (All Completed!):

Refactoring and simplification of the Minimal Djed smart contract.
Completed in Q3 2022.
Implementation of the Djed Osiris features (simultaneous sale of stablecoins and reservecoins, transaction limits and decreasing treasury fee) in the smart contract.
Completed in Q4 2022.
Testing of the smart contract.
Completed in Q4 2022.
Refactoring of the frontend, to conform with the new interface of the improved and upgraded smart contract.
Completed in Q1 2023.
Audit of the smart contract by Peckshield.
Completed in Q1 2023.
Set up of continuous deployment of frontend to IPFS.
Completed in Q1 2023.
Deployment of contracts to Milkomeda Mainnet.
Completed on the 29th of April 2023.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

The milestones have led us to produce two deliverables:

The (fully autonomous) smart contracts, deployed to Milkomeda.
Source Code: <https://github.com/DjedAlliance/Djed-Solidity/releases/tag/Belus>
Contract Address: <https://explorer-mainnet-cardano-evm.c1.milkomeda.com/address/0x67A30B399F5Ed499C1a6Bc0358FA6e42Ea4BCe76>
A frontend to allow users to interact conveniently with the smart contracts.
Source Code: <https://github.com/DjedAlliance/Djed-Solidity-WebDashboard>
URL of the frontend: <https://milkomeda-c1.djed.one>.

The audit reports by Peckshield can be found here: <https://github.com/DjedAlliance/Djed-Solidity/tree/main/audits> .

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

Refactoring of Minimal Djed smart contract: 2560 USD.
Implementation of auxiliary contracts: 900 USD.
Research of Djed Osiris features: Not accounted in this proposal.
Implementation of Djed Osiris features: 9000 USD.
Research of Improvements for Milkomeda's Open Oracle (MOO): Not accounted in this proposal.
Implementation of Improvements for Milkomeda's Open Oracle (MOO): 11000 USD.
Implementation of a better Oracle poster script: 1180 USD.
Refactoring of the frontend: 22000 USD.
Testing and Devops: 5535 USD.
Audits by Peckshield: 9600 USD.
Marketing (writing of Medium articles and Tweets): Not accounted in this proposal.
Business development (for adoption by DEXes on Milkomeda): Not accounted in this proposal.
Infographic: 105 USD.
White Board Animation: 263 USD.
Djed Alliance Logo: 89 USD.
Domain Purchase: 100 USD.
Home-Page: 2600 USD.

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

This project benefitted from contributions by people and teams who wish to remain anonymous and by people and teams whose identity and participation in the project is known. Below we list only the latter. Furthermore, we distinguish them in two groups: people/teams whose work has been accounted in this proposal's budget and people whose work has not been accounted in the budget.

People whose contributions have not been accounted in this proposal's budget:

Dr. Bruno Woltzenlogel Paleo (a.k.a. Zahnentferner):
Vision, overall supervision, research of Djed Osiris, implementation of Djed Osiris features.
Dragutin Vukotic:
Project management.
Filip Dimitrijevic:
Business development.

Teams and People whose contributions have been accounted in this proposal's budget:

Bloxico:
Katarina Antic: management of the frontend upgrade.
Kristina Pejcic: software development of the frontend for upgraded contracts.
Danilo Kitanovic: development of smart contracts.
Nikola Jovancevic: quality assurance and tests.
Tomislav Ivanovic: devops.
Australian Open Source Software Innovation and Education:
Raj Ranjan:
Smart contract development, tests and IPFS CD configuration.
Ayush Tiwari:
Smart contract development and tests.
Thespian:
Home-page design and implementation.
Alexis Hernandez (WiringBits, former technical architect for Atala at IOG):
Configuring the Djed Alliance's repository settings and setting up Code Preview, to ease the review of pull requests and improve our PR processes.

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

The audit costs were paid to Peckshield. Peckshield normally charges 2400 USD per day. Thanks to prior intensive refactoring, we were able to make our smart contracts very compact and clear, and hence auditable in a short amount of time (4 days), for an exceptionally low price.

The software development costs were calculated by carefully tracking each contributor's spent time and multiplying it by his or her hourly rate. Contributors were from countries where rates are (un)fortunately low, such as: Serbia, Poland, Mexico and India… Furthermore, the work of all our applicants, whose hourly rates are higher, have not been accounted for in this proposal.

コミュニティ・アドバイザー・レビュー (5)

Impact / Alignment

4.6 / 5

5 レビュー

拡大崩壊

Has this project clearly demonstrated in all aspects of the proposal that it will positively impact the Cardano Ecosystem?

Based on the information provided, it appears that the proposed solution, Djed Osiris, is a decentralized stablecoin protocol that requires no moderators, no administration, is completely immutable and runs on Milkomeda. The project aims to solve the challenge of creating a solid and reliable platform for Decentralized Finance (DeFi) on Cardano by providing a decentralized stablecoin protocol. This protocol directly addresses the challenge by becoming the first Fully Decentralized (no operator, no governance, completely immutable) Stablecoin Protocol on Cardano. The project aims to measure its success based on several metrics, including being listed by major DEXs, high TVL versus TVL on Milkomeda, high trading volume, as well as minting and burning stablecoins. and reserve when interacting with the Djed Osiris contract. However, the project also positively affects Cardano's productivity and growth by creating more utility for ADA while increasing demand and bringing stablecoin use cases for Milkomeda and Cardano. In terms of output and result sharing, the project has shared its code in a GitHub repository, which is accepted by DEXes, tweets, and Discord servers. In a nutshell, the project has the potential to bring significant impact to the Cardano ecosystem by creating a trusted platform for DeFi, increasing demand for ADA, and bringing stablecoin use cases for Cardano and Milkomeda in a completely moderator-free, non-administrative, transparent environment (with the code open for inspection and contribution). Based on the information provided, the impact of the project can be appreciated, as it directly addresses the challenge and has the potential to significantly benefit the Cardano ecosystem.

Having an algorithmically stablecoin on blockchains is critical for DEFI development and progress toward full decentralization. But no algorithmic stablecoin has yet to prove its effectiveness. Funding the project with the idea of creating Djed Stablecoin on Milkomeda Sidechain is the first step to prove the effectiveness and success of the Stablecoin algorithm on Cardano However, I need the team to explain a few points: Because the level of security on Sidechain is lesser than on the main chain, what draws people to deposit their money there? Will the revenues generated by Djed on Sidechain Milkomeda be sufficient to entice consumers to join? How many people are now using Sidechain Milkomeda?

The product and integration challenge states, "Cardano needs a thriving ecosystem of different products and integrations for the community to use that increasingly become the better alternatives over current centralised providers". Djed Osiris on Milkomeda would be the first fully decentralised stablecoin protocol in the Cardano ecosystem, and thus directly addresses the challenge's statement.

The proposed solution aims to introduce the Djed family of stablecoin protocols to the Cardano ecosystem. These protocols are crypto-backed and autonomous, allowing users to buy and sell stablecoins and reservecoins through smart contracts. The project offers several potential benefits to the Cardano ecosystem:

Pro: DeFi Expansion: Stablecoins are considered foundational for DeFi (Decentralized Finance) to flourish. The introduction of Djed Osiris as the first fully decentralized stablecoin protocol in Cardano can pave the way for a thriving DeFi ecosystem on the platform.

Pro: Enhanced ADA Utility: Djed Osiris uses ADA as a reserve asset, which creates additional utility for ADA holders. The increased demand for ADA to mint stablecoins and reservecoins can positively impact the overall ADA ecosystem.

Pro: Decentralization and Transparency: The proposed solution is fully autonomous, transparent, and censorship-resistant. It operates without any central authority, aligning with the principles of decentralization and transparency that Cardano promotes.

Pro: Mathematical Proofs and Verification: The stability theorems of the Djed Osiris protocol have been mathematically proven and formally verified, which adds credibility to its functionality and stability.

Overall, the introduction of Djed Osiris on Milkomeda can have a positive impact on the Cardano ecosystem by enhancing DeFi capabilities, increasing ADA utility, and promoting decentralization and transparency.

The proposal's implementation of the Djed Osiris stablecoin protocol on Milkomeda brings significant value to the Cardano community. As mentioned in the solution, stablecoins are a foundational building block for the DeFi ecosystem, enabling various use cases such as payments, remittances, and hedging against volatility. Djed Osiris is the first fully decentralized stablecoin protocol in the Cardano ecosystem, providing autonomy, transparency, and censorship resistance. By creating a stablecoin protocol on Milkomeda, the project enhances the utility and demand for ADA, Cardano's native cryptocurrency. Moreover, the initiative to share the project outputs through GitHub repositories, engagement with DEXes, and regular communication on Twitter and Discord shows a commitment to community involvement and transparency. The successful completion of milestones and delivery of the project further adds to its positive impact, as it provides a reliable and autonomous stablecoin solution within the Cardano ecosystem.

Feasibility

4.4 / 5

5 レビュー

拡大崩壊

Is this project feasible based on the proposal submitted? Does the plan and associated budget and milestones look achievable? Does the team have the skills, experience, capability and capacity to complete the project successfully?

Reviewing the feasibility based on the proposal, this project is already fully delivered. The project's achieved goal was to have Djed Osiris launched on Milkomeda. This was accomplished on the 29th of April 2023.

Based on the information provided, it looks like the proposal addresses the challenge of developing a decentralized, autonomous, secure and cost-effective stablecoin protocol on Milkomeda. The team seems to have a strong ability to execute the project and has demonstrated this ability through the completion of the project and the delivery of two products - smart contracts and user interfaces. The team also documented their approach and explained how they managed to overcome the project's challenges. However, currently not enough information is provided on the project's milestones and expected outcomes. The team mentioned several milestones, but it is unclear how each relates to the overall goals and intended outcomes of the project. In terms of project feasibility, the team completed the project, which is an impressive achievement. That said, it is important to note that the team did not provide any information on how they assessed the feasibility of the project prior to starting the project. It is important for project teams to carefully assess project feasibility before work begins, to avoid wasting time and resources on unfeasible projects. Finally, it is important to note that the team did not provide any information on how they intend to measure the success of the project. It is essential for project teams to have a success measurement plan in place to ensure that the project achieves its intended goals and outcomes. Without a clear plan to measure success, it is difficult to assess whether the project has achieved the expected results and it is difficult to make informed decisions about future projects. Overall, while the proposed project appears to have been successfully implemented, the lack of information about the project's milestones and expected outcomes, a clear plan to measure success, and a comprehensive assessment of project feasibility before work begins, can raise questions about the team's ability and viability to successfully execute the project.

On April 29, 2023, the team completed the proposal. With implementation issues, the team need cash to motivate the team to continue developing the project. This is very appreciated. However, this will set a precedent for future projects to follow in order to complete their projects with a strong community. Then submit proposals to Catalyst to compete with emerging projects. This is contrary to Catalyst's original desire to provide funding for early stage implementation projects.

Based on the provided information, the proposed project appears to be feasible, with the Djed Osiris stablecoin already launched on Milkomeda. The milestones and tasks for the project have been completed, and the smart contracts have been deployed. The involvement of reputable teams and contributors, such as Bloxico and the Australian Open Source Software Innovation and Education association, adds to the feasibility of the project.

Pro: Already Delivered: The project has already been fully delivered, and the Djed Osiris stablecoin protocol has been implemented and deployed on Milkomeda.

Pro: Credible Contributors: Reputable teams and individuals have contributed to the project, ensuring the quality and reliability of the delivered solution.

Con: Unaccounted Costs: The proposal acknowledges that some costs, such as business development and marketing, have not been accounted for. These costs may need to be considered to assess the full feasibility of the project.

In summary, the project has demonstrated feasibility through its already delivered solution and the involvement of capable contributors and teams.

The proposal demonstrates a high level of feasibility based on the successful completion of all milestones, including smart contract refactoring, testing, audits, and frontend deployment. The project was delivered ahead of schedule and within the budget, showcasing effective project management and execution. The team behind the project comprises experienced professionals and established organizations, such as Bloxico and AOSSIE, which have a track record in blockchain and fintech development. The project's smart contracts have undergone formal verification and stability theorems have been mathematically proven, ensuring a secure and reliable stablecoin protocol. Additionally, the implementation of Djed Osiris features allows for better resilience to price shocks, enhancing the stability of the stablecoins on secondary markets. The successful integration of Djed Osiris on Milkomeda and its features, along with its potential listing on major DEXes, indicate a solid foundation for scalability and adoption.

Value for money

4.4 / 5

5 レビュー

拡大崩壊

Is the funding amount requested for this project reasonable and does it provide good Value for Money to the Treasury?

I would have appreciated more details on the value for money in the proposal.

However, based on the impact in the proposal, the Djed Osiris stablecoin on Milkomeda will positively affect Cardano's productivity and growth because the protocol uses (m)ADA as a reserve asset that would creates extra utility for ADA thereby increasing the demand for ADA since it is needed to mint stablecoins and reservecoins.

The team proposes a salary budget of 224,212 ADA for a nearly 12-month work period from mid-2022 to mid-2023. The costs are detailed, even down to the domain name purchase and logo production. I applaud the group's overlook for the costs of research, marketing, and members with high hourly wages.

The team provided a detailed breakdown of the project's milestones and each key task or activity to achieve them, including projected timelines. This demonstrates their ability and commitment to the project. They have clearly presented the expected deliverables, outputs, and outcomes, which shows that the team has a clear plan and vision for their project. In addition, they have delivered the project, with a final user interface that is deliverable, which will be released on April 29, 2023. This shows their ability to deliver the project with a high level of trust and accountability. The team faced significant challenges during the execution of their project and suffered from high opportunity costs, but they have persevered through a valuable project that the Cardano community will appreciate. This demonstrates their ability to take on challenges and their commitment to deliver a project that innovates and revolutionizes the way business is done. The proposed budget allocation reflects the scope of work and the expected cost for each task. Their team composition and assigned roles demonstrate the skills and expertise required to provide a fully operational implementation of the stablecoin protocol on Milkomeda. In general, the resources allocated to the proposed project represent value for money in terms of resource allocation and resource cost reflecting the complexity and expected time required for each task. The team's overall skills and experience, as well as the specific allocation of team members to each task, indicate that they are capable of successfully carrying out the project. The proposed team's hourly rate and time estimates reflect a realistic estimate of the resources required to complete the project. The proposed project budget seems to be a good value for the Cardano ecosystem, given the expected benefits and the qualifications of the team. The allocation of resources and budget seems appropriate and reflects the expected effort required to complete the work. The team's qualifications and expertise show that they are fully equipped to successfully execute the project and that the expected benefits to the Cardano ecosystem, as outlined in the project proposal, will have a positive impact to the Cardano community. Overall, the team has demonstrated strong competence and feasibility, with a clear plan and vision for their project, high trust and responsibility, and the ability to overcome challenges. In this review of the proposal, the team received a score of 4 out of 5 in competence and feasibility based on their proven ability to deliver the project with a high degree of trust and accountability.

The proposed budget for the project accounts for various tasks and resources required for the development and deployment of the Djed Osiris stablecoin protocol on Milkomeda. However, it's important to note that certain costs, such as business development and marketing, have not been included in the proposal.

Pro: Audit Cost Efficiency: The cost of audits by Peckshield was relatively low due to the compact and clear nature of the smart contracts, making the audit process more efficient.

Pro: Hourly Rate Considerations: The hourly rates of contributors were calculated based on rates from countries where the costs are lower, ensuring cost efficiency.

Con: Unaccounted Costs: As mentioned earlier, certain costs, such as business development and marketing, are not included in the proposal. These costs may need to be evaluated to assess the overall value for money.

Con: Lack of Future Metrics: The proposal does not include specific metrics to measure the ongoing success and impact of the Djed Osiris protocol on Milkomeda, making it challenging to assess the long-term value for money.

In conclusion, while the proposal demonstrates cost efficiency in certain aspects, the full value for money assessment may require a closer examination of unaccounted costs and future metrics for success. Additionally, the already delivered solution and the potential impact of Djed Osiris on Milkomeda's DeFi ecosystem can contribute to its overall value for the Cardano Treasury and the community.

The proposal presents a detailed and transparent breakdown of the budget, including development costs, audits, marketing, and other expenses. The costs have been calculated based on hourly rates and contributions from a diverse team of professionals, ensuring efficiency and cost-effectiveness. The project's execution has been optimized, resulting in lower audit costs due to compact and clear smart contracts. The team has taken the initiative to deliver the project without waiting for Catalyst funding, showcasing a commitment to delivering value to the Cardano community. Given the project's successful delivery, the adoption of Djed Osiris by DEXes, and its potential to increase the demand for ADA, the proposal represents excellent value for money. The stablecoin protocol addresses a critical need within the Cardano ecosystem, providing a fully decentralized and reliable stablecoin solution. Overall, the proposal demonstrates a strong technical implementation, high feasibility, and great value for the Cardano community, earning a rating of 5 in each area. The project's success in bringing a fully decentralized stablecoin protocol to Milkomeda enhances Cardano's utility, fosters DeFi growth, and showcases the capabilities of the ecosystem.

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