[SOLUTION] Please describe your proposed solution.
Many countries across the globe and Africa in particular are plagued with hyperinflation and currency devaluation. According to IMF data, the average Inflation for sub-Saharan Africa for 2023 was %15.6 (https.//imf.org/external/datamapper). The Nigerian Naira is currently trading at an all-time low. In a little under a year, the Naira (NGN) has fallen more than 49%. The Naira traded at N735/$ on January 1, 2023, but currently exchanges for about N1145/$. This unpalatable scenario is not limited only to Nigeria. Several other countries in Africa and beyond suffer similar currency devaluation.
Often to hedge against this alarming currency devaluation, the upper class has access to USDollar-denominated investments such as domiciliary bank accounts among others.
The lower and middle classes are worst hit by eroding currency values due largely to the challenge of accessing domiciliary bank accounts and limited savings. The need to preserve their limited savings is even more urgent as their little savings get eroded all too quickly.
We believe Cardano ecosystem stablecoins can deliver the much-needed solution. This we hope to achieve by incentivizing users to save using Cardano stable coins in a non-custodial DApp .
Stablecoins emerged sometime in 2014 and have extended the usefulness of blockchain technology. By tracking the value of an underlying asset (such as US Dollar), stablecoins protect users from the volatility of cryptocurrencies. With this relative stability, stablecoins have become a veritable medium of exchange and a reliable store of value. Stablecoins have extended the decentralized finance (DEFI) use case of cryptocurrencies by giving access to financial services not within reach of the poor.
Our proposed solution is to get users with access to one or any of the selected Cardano ecosystem stablecoins to lock up their savings for a defined period. If users abide by the lockup period they will be rewarded with one or a combination of ADA/stablecoins/NFTs/badges at the end of the period. Those who choose to break up their savings MAY BE penalized for this depending on how much of the savings tenure was kept.
Cardano Stablecoins:
USDA by Anszen/Emurgo
https://www.emurgo.io/press-news/the-role-of-stablecoins-in-cardanos-defi-ecosystem/
USDM by Mehen
Djed by COTI
[IMPACT] Please define the positive impact your project will have on the wider Cardano community.
We seek to validate the concept of savings using Cardano stablecoins as a means of hedging against hyperinflation and currency devaluation.
We plan to develop a prototype minimalist DApp that users can connect their wallets and lock up stablecoins for a defined period. In achieving the validation we will provide education and information to target prospective users (including new-to-crypto, new-to-Cardano, and existing Cardano users). This will lead to the onboarding of hundreds of new users and extend the utility of the Cardano blockchain and stablecoins in particular.
The positive impact will be measured using the following metrics
- Number of outreaches and events to showcase Cardano and the DEFI savings DApp.
- Number of new users onboarded to Cardano ecosystem.
- The number of wallets connecting to the DApp and utilizing Cardano DEFI stablecoins.
- The total value of Cardano stablecoins locked in the DApp.
- Collaboration with Cardano stablecoins projects.
We plan to share the outputs from the project with the Cardano community using monthly/milestone reports, and the GitHub repository among others.
The proposed DApp will ultimately be available to anyone anywhere across the globe with access to Cardano stablecoins. While we will reach out to users globally, we will target key African markets with in-person presentations in Nigeria at the initial stage.
[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?
The proposal is very feasible in our opinion as it depends largely on the availability of acceptable stablecoins on the Cardano blockchain and the development of a minimalist DApp.
We intend to consult extensively within and outside the Cardano community before, during, and after project implementation. The project iteration will include but not limited to the following:
- Prospective users surveys
- Code development and testing
- Code audit and review
- Community outreach/events
- Deployments and improvements
With ongoing engagements with the Cardano community for feedback.
The Proposer and Team Lead is an experienced Financial Consultant with years of banking experience. He has been involved with blockchain technology and cryptocurrencies both as an investor and evangelist. He will be supported by other team members with financial sector experience as well.
On the code development, we plan to engage RemoStart and other developer teams within Cardano community.
[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?
Milestone ! (1 month)
Team building and assignment of roles.
Target users survey for design of the proposed DApp.
Discussion with the Developers for the DApp.
Deliverables
Team is formed and defined tasks.
Clear cut understanding of what will be in DApp.
Agreement and contract with the developer.
Milestone 2 (2 months)
Commission Developer for DApp development.
Testing and audit of the DApp.
Deliverables
DApp delivered.
Milestone 3 (6 months)
Marketing Campaign
Onboard users
Deliverables
Organize and hold outreach/promotional events.
Onboard target number of users
Closeout
Deliverables
Close-out report and video
[RESOURCES] Who is in the project team and what are their roles?
Ona Ohimor
Proposer and Team Lead
The lead proposer is a finance professional with several years of banking experience. He has been in web3 for over three years, initially as a crypto enthusiast but now as a Blockchain and Web3 evangelist. He has trained and onboarded dozens of newbies to Blockchain. Besides, his passion for crypto, he is an advocate for small and growing businesses and provides functional skills training for businesses.
https://www.linkedin.com/in/onoakpomaohimor
Emmanuel Rukevwe
An upcoming web3 developer.
RemoStart
A platform for tech talents.
Upon approval and funding, the team will engage additional members to meet the needs of the project including a Cardano developer.
[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.
Milestone 1 (1 month)
Preliminary survey ₳2,000
Team compensation ₳1,000
Total ₳3,000
Milestone 2 (2 months)
DApp development ₳15,,000
Testing and audit ₳5,000
Team compensation ₳4,000
Total ₳24,000
Milestone 3 (6 months)
Marketing campaigns ₳18,000
(A3,000 per month)
Incentives for DApp users ₳25,,000
(1,000 users @ average of A25)
Team compensation ₳24,000
(Team of 4 for 6months)
Total ₳67,000
Milestone 4
Close out report/video ₳2,000
Total ₳96,000
[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?
The proposal seeks to fund at least a team of four excluding the DApp developer and achieve the following outcomes:
- Survey the target market segment on utilizing Cardano stablecoins for savings to hedge against inflation and currency devaluation.
- Develop a Prototype DApp for locing of stablecoins.
- Onboarding of 1,000 DApp users (both new-to-blockchain and new-to-Cardano users).
- Extending the use and adoption of Cardano stablecoins.
- Increase and enhance Cardano as a DEFI platform.
We believe this is great value for the Cardano ecosystem as the funds we deliver insightful feasibility/survey, a prototype DApp and validate the concept of the use case of Cardano stable coins while also bringing potentially thousands of users to the network.