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sora-xor / rfps

SORA network development public Request for Proposal development process
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[RFP]: SORA-Palmatrix Polkaswap-CEX Bridge #80

Open districtBC opened 10 months ago

districtBC commented 10 months ago

Proposal Due Date

1.4.2024

Proposal Overview

We met with Andrej G. (Soramitsu) at the Slovenian financial fair in Q2 2023, where we started discussing liquidity issues. We agreed that financial institutions need better UX to access the SORA liquidity pool (and other crypto services) seamlessly. Andy introduced Beno V.G. We started developing solutions via the Telegram group and monthly/weekly meetings.

Our (Palmatrix Ltd) vision is to help crypto / digital asset markets grow by assisting financial institutions to enter the space. We strive to bridge the DEX and CEX markets. Currently, we do it by equipping financial institutions with Smart Order Routing (100+ crypto exchanges), Asset Management application (manage crypto for others), Exchange application (exchange for end users, managers, payment systems, etc.), Exchange infrastructure (token listing), and Digital Asset payment infrastructure. Our unique proposal is that all technology for B2B is set up within traditional regulatory proportions.

The entire solution is now in a phase where we need to wait for legal confirmation on several processes that we have proposed.

Bridge DEX and CEX concept 001

However, while our B2B side (Palmatrix PaaS) always needs legal confirmation, we can always go ahead with our B2C side, where we are implementing all solutions to our non-tech user-friendly tool, PalmaBot. This one-of-a-kind virtual assistant lives on Telegram and enables our 2000 users to trade on 40 crypto exchanges through a single/unified UI. It is in production since 2018 and is getting AI features implemented as we speak to enable natural language recognition asap (we are lucky with the AI boom with ChtaGPT and OpenAI).

Our strategy is: implement on B2C side first and when it gets regulated enable also on B2B side. Bridge DEX and CEX concept 002

This brings us here, where we would like to:

  1. Enable access to SORA liquidity pool for PalmaBot users by implementing it into Palmatrix multi-exchange access and labeling it open-source in CCXT open source library. Consequently, add the SORA liquidity pool into our SOR (Smart Order Routing / PalmaExecutor) for our B2C users and add the staking feature to PalmaBot - all labelled open-source.

  2. Implement widget for SORA liquidity pool to enable liquidity from CEX markets/CeFi, while enabling hedging with Palmatrix market-making features—open source.

Later, as soon as the legal framework for the above is defined and regulated, we can enable this for our clients on a financial institutional level.

Proposal Goals

There are five goals (with benefits), and when it comes to benefits, we are discussing entering the early majority of mass adoption with this bridge. The logic is simple - it is known historically that 25% of the population will invest, full stop. Today the decentralized (Web3.0) community has less than 3% of population attending and it is so because the majority of population cannot enter the space (not enough technical knowledge). By implementing Palma services, we are bridging CEX and DEX space and increasing the population from 3% to 25%. As with PalmaBot virtual assistant, you only need to know natural language and mobile phone usage to enter DeFi.

Conceptual Diagrams 001

  1. Implement Polkaswap public API connector into CCXT open source library, which has great potential on a short-term basis to:

    • Enable any trading tool that uses CCXT to start trading via the SORA network/Polkaswap,
    • It is hard to estimate precisely, but for sure, in the next 4-year cycle, we can expect consequently,
    • Increased trading volumes as more peers will be trading on Polkaswap with the DEX added to multi-exchange trading environments (such as Palmatrix SOR) and
    • Increased funding of liquidity pool.

  2. Integrate SORA Wallet to the Palmatrix platform in the next 12 months:

    • Enable access to Polkaswap/SORA features for PalmaBot users and non-tech-savvy users (masses) in a non-custodial (PalmaBot - B2C) and custodial (Asset Management - B2B) way,
    • Make SORA wallet accessible to Perception TV users (500 Mio audience reach) and other Palmatrix partners,
    • Open source SORA wallet integration to any web-based protocol (messenger platforms, browser widgets, etc.)
    • Increase participation in the SORA liquidity pool, and
    • Increase trading volumes.

  3. Add Polkaswap to Palmatrix SOR/PalmaExecutor (trade execution engine for PalmaBot and Palmatrix multi-exchange layer), which is:

    • Increasing liquidity in the SORA/Polkaswap network by enabling trade execution via the SORA network for PalmaBot users and PalmaExecutor partners' users plus Palmatrix institutional clients (B4C) and
    • Increasing trading volumes.

  4. Add the staking feature to Palmatrix, PalmaBot, and PalmaExecutor:

    • Enable masses of non-tech-savvy users to stake into the SORA liquidity pool and
    • Increase Polkaswap/SORA liquidity by talking to a virtual assistant or using webhook technology.

  5. Implement CeFi widget for the SORA liquidity pool to include CEXs for hedging, also Palma users that are not in the liquidity pool:

    • Enable additional liquidity for Polkaswap by increasing trade success/liquidity in Polkaswap/SORA,
    • Bring more indirect liquidity into the SORA pool by enabling hedging on CEXs.

Scope of Work

  1. Implement Polkaswap into CCXT open-source library (Open Source) -> est. $ 30k USD 1.1. Research additional possibilities 1.2. Specify requirements 1.3. Develop beta version (and SORA public API if needed) 1.4. Test, debug, and confirm (by CCXT admins) 1.5. Launch to public version of CCXT

Conceptual Diagrams 002

  1. Integrate SORA Wallet to PalmaBot (Open Source) -> est. $ 120k USD 2.1. Research and Specify requirements 2.2. Upgrade Palmatrix architecture 2.3. Integrate wallet 2.4. Test features 2.5. Beta launch

Conceptual Diagrams 003

  1. Add Polkaswap to Palmatrix SOR/PalmaExecutor (Open Source) -> est. $ 60k USD 3.1. Add new data source (actual price) and trade execution destination (Polkaswap) to SOR/PalmaExecutor 3.2. Update PalmaBot sources and features 3.3. Beta test with close PalmaBot user pool and PalmaExecutor partners 3.4. Launch to production

  2. Add staking feature to PalmaBot/PalmaExecutor (Open Source) - est. $ 40k USD 4.1. implement new commands in the Telegram framework 4.2. implement staking process (connect wallet - define stake) 4.3. Test Alpha launch with core community 4.4. Beta launch

  3. Implement CeFi widget for SORA liquidity pool (Open Source) -> est. $ 60k USD 5.1. Research and specify requirements 5.2. Upgrade Palma P2P matching engine 5.3. Integrate price-widget for Pool members to see opportunities from CEXs 5.4. Integrate trade-execution-widget for Pool members to initiate trades

The team dedicated to the 1st phase (will expand in the next phases):

  1. Dorian, Palmatrix CTO https://www.linkedin.com/in/42dorian/ -> Lead Engineer -> Developer

  2. Tadej, Palmatrix DLT advisor https://www.linkedin.com/in/tadej-fius/ -> Protocols for optimized DEX-CEX communication -> Developer

  3. Janez, Palmatrix Co-founder https://www.linkedin.com/in/kostanjsek/ -> Palma Architecture Design -> Developer

  4. Jernej (me), Palmatrix CEO http://si.linkedin.com/in/jernejvrcko -> Project lead -> Devops

The timeline with costs:

  1. Phase 1 (8 weeks): est. $ 90k USD, see details here: https://github.com/sora-xor/rfps/issues/85 1.1. R&D & Specify missing parts (both teams, see 1.1., 1.2., and 2.1. above) 1.2. SORA devs: Implement Polkaswap public API with
    • Ticker price
    • Market order trade execution 1.3. Palma devs: Implement public API connector and deploy to CCXT open-source library 1.3. Palma devs: Integrate SORA Wallet to PalmaBot (prototype)
    • To enable price feed and
    • Swap.

Bridge DEX and CEX concept 003

  1. Phase 2 (20 weeks): est. $ 120k USD 2.1. SORA Wallet Integrated to PalmaBot Beta version 2.2. Polkaswap Integrated to PalmaExecutor

  2. Phase 3 (20 weeks): est. $ 120k USD 3.1. Polkaswap included in SOR/PalmaExecutor 3.2. SORA Liquidity Pool Widget for CEX hedging

  3. Phase 4 (20 weeks): Estimated too early due to unknown regulations, but be aware that this is the last phase and the ultimate goal for bridging DEX and CEX markets.

Current Roadblocks and Barriers to Success

The catch in this ideal plan is that liquidity would start flowing from DEX to CEX markets and vice versa. This means that much bigger liquidity from CEX markets will help in successful trades on the DEX side.

Without our help preparing your public trading and price APIs you will need much longer time to market as if we help with 6+ years of expertise on trading technology. This will bring the professional trading level and liquidity to Polkaswap the fastest way possible.

Also, our PalmaBot virtual assistant is with natural language recognition becoming a massively helpful tool for anybody to access not just trading on the multi-exchange environment but also to access web3.0 in an easy-to-understand and safe way even without online security know-how. This means integrating SORA wallet to PalmaBot will bring new users and even more liquidity to SORA liquidity pool and trading.

Evaluation Metrics and Criteria

  1. Specification is done when all steps are defined conceptually.
  2. CCXT implementation is done when the defined scope of features is implemented and confirmed by the CCXT owner on GitHub.
  3. SORA wallet is successfully implemented in production, and PalmaBot users can execute features defined in the specification.
  4. The SORA order book is implemented into SOR as soon as SOR can start using it.
  5. The CeFi widget is implemented into the SORA pool as soon as SORA users can execute trades on Polkaswap while hedging on CEXs.

Submission Requirements

Approval by CCXT admins. SORA wallet transaction successful and confirmed by Soramitsu devops.

Submission Method

Blockchain: Mainnet

Project Due Date

1.6.2025

Budget Amount

This is only possible to estimate once the complete specification is done. The entire conceptual specification usually costs $10.000,00 USD. Our quick estimation for the Palma Dev part is $330.000,00 USD.

WRRicht3r commented 8 months ago

Proofed and edited the text.