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XGov80: Open source concentrated liqudity AMM #80
XGov80: Open source concentrated liqudity AMM #80
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Abstract
We will improve Algorand's DeFi ecosystem and with concentrated liquidity AMM we will give users better swap quotes and liquidity providers better yields in comparision with using traditional AMMs.
This grant proposal aims to advance the development and open source implementation of Automated Market Makers (AMMs) with concentrated liquidity. AMMs have emerged as a crucial component of decentralized finance (DeFi), providing efficient and decentralized mechanisms for trading digital assets. However, traditional AMMs suffer from certain limitations, such as inefficient capital utilization and vulnerability to impermanent loss.
Concentrated liquidity models address these issues by allowing liquidity providers (LPs) to concentrate their funds within specific price ranges, thereby enhancing capital efficiency and reducing the risk of impermanent loss. This proposal seeks funding to support research, development, and implementation efforts focused on creating open source algorand AMM smart contract.
By supporting this grant proposal, you will contribute to the advancement of decentralized finance by addressing the limitations of traditional AMMs and enhancing capital efficiency and risk management through the implementation of concentrated liquidity models. This research and development effort will foster innovation, attract liquidity providers, and improve the overall user experience in the rapidly evolving Algorand DeFi ecosystem.
Team
Scholtz - Product owner. Active on Algorand forum, runs a few projects in Algorand ecosystem such as the VoteCoin, A-Wallet, Aramid Bridge, Stabilitas, ASA.Gold. Has been winner in few hackathons, such as Algorand encode hack 2021, EUvsVirus, Swiss blockchain hackathon 2021, Bitcoin bankathon, Encode DAO hack, Algo HackJam, Greenhouse hack III, Mega Ace Hackathon, ...
Experience with Algorand
Scholtz & Co is relay node runner.
We provide many open source tools to help algorand communities - https://github.com/scholtz?tab=repositories&q=algorand
Everyday Algonaut channel
Present Proposal
We will build Open source concentrated liqudity AMM integrated to at least one of the Algorand's DEX aggregotors.
With concentrated liquidity people get better swapping quotes, and liquidity providers will get higher returns on their investments.
Roadmap
We will work using LeSS principles, with 2w sprints & product increments.
Estimated project delivery is 3 months from the project funding.
Milestone 1 - Project approved (prepayment)
Date: T Amount: 100000 ALGO
Description: We require half of the funds to be prepaid, so that we can pay salaries for developers
Milestone 2 - Smart contract delivery
Date: T + 3 months Amount: 200000 ALGO
Milestone 3 - Integration to DEX aggregator
Date: T + 6 months Amount: 200000 ALGO
Milestone 4 - Audits (not in scope of current grant round)
Date: T + 18 months Amount: TBE
Description: We will deliver smart contract and web with abilities to open new lp pool with concentrated liquidity, do swaps and manage the liqudity
Community
Please join our discord at https://discord.com/invite/Z3yQkU3kbT
White Paper
https://cloudflare-ipfs.com/ipfs/QmagzMhx2dqgAH9YePwx2UhgnMdvNG3whauLZriUunufTH
Video presentation
https://www.youtube.com/watch?v=wqZYZzO059M
Benefits for the community
The Algorand community stands to benefit significantly from the development and implementation of an open-source Automated Market Maker (AMM) with concentrated liquidity. Here are some key benefits that such a project can bring to the Algorand ecosystem:
In conclusion, the development of an open-source AMM with concentrated liquidity brings several benefits to the Algorand community. It enhances liquidity efficiency, mitigates impermanent loss, expands investment opportunities, strengthens DeFi integration, fosters community-driven development, and attracts liquidity providers. These benefits contribute to the growth, competitiveness, and resilience of the Algorand ecosystem, positioning it as a leading platform for decentralized finance.
Additional information
We seek to establish new legal entity for this project and comply with MiCA regulations.
This grant request does not include audits, however we are open to cooperate with any auditors on audits. We assume in next period we will request funding for audits.
We have created project discord - https://discord.com/invite/Z3yQkU3kbT . Please sign in and lets have a chat.