Milkomeda Catalyst Proposal Updates

As we embark on 2023, the Milkomeda protocol is poised for thrilling advancements. Our team is dedicated to bringing forth a range of innovations that will elevate the user experience of the EVM-based sidechain for Cardano. We are exploring ways to simplify the interaction with sidechains and layer 2s, while also maintaining our unwavering commitment to the security of our blockchain interoperability solutions. Get ready for an exciting journey as we shape the future of decentralized technology!

Some of these ideas, including the research behind them and the development of the final solution, have been funded by Cardano’s innovative Project Catalyst. Project Catalyst is a decentralized funding mechanism set up by IOG, the development company behind the Cardano blockchain, to allow the Cardano community to vote on which projects and ideas receive funding.

To keep the Cardano community informed of the proposals and projects that Project Catalyst has funded for the Milkomeda, we’ve curated this list of those proposals, separating them into In-Progress and Completed proposals. Here we summarize the proposals, the work done or currently being undertaken, and provide links to any necessary materials should you want to delve further into a particular proposal or its outcome.

In-Progress Proposals

These proposals are all currently being worked on, and here we describe the current status of each one.

Fund 9 — Cross-Chain Collaboration — Proposal

TLDR: When an asset is bridged to Milkomeda over different bridges, each bridge creates an alternate version of the same asset. These assets, although representing the same thing, cannot no longer be used together, e.g., combined in the same liquidity pool. This proposal funded the development of a solution, smart contracts that are used to canonize these assets into a single version. These contracts have been audited and we are currently working on building the UI for users to be able to interact with these smart contracts.

We have written smart contracts, called Canonical Smart Contracts, that solve the issue of fractionalized bridged assets by merging different versions of bridged assets into one canonical asset. If we take USDC as an example, when it is transferred to Milkomeda C1 over Celer Bridge, it becomes the wrapped asset ceUSDC, but when it is transferred over the Multichain bridge, it becomes the wrapped asset multiUSDC. This means we have multiple assets, one for each bridge, representing the same original asset. Both are equal in the eyes of the user but not in the eyes of the blockchain, as they are different assets that were minted from different contracts by different bridges.

This produces many problems, the most notable at the moment being that these assets cannot be combined as liquidity in DeFi protocols, producing fractionalized pools of liquidity and significantly deteriorating the user experience. Using Canonical Smart Contracts users will be able to convert these fractionalized assets into a single, unified asset, solving a problem that is likely to persist across the blockchain world.

The contracts have undergone an audit and all the identified issues have been addressed. We have also begun developing the UI where users will interact with these smart contracts and canonicalize their assets.

Upon release of these contracts, we will produce blog posts that describe the problem and our solution. The centerpiece of our efforts will be the introduction of the Treasury concept, designed to safeguard against potential bridge hacking attempts. We are also working on extensive documentation to allow other developers to utilize these smart contracts to manage fragmented assets.

Fund 7 — New SPO Business Opportunities — Proposal

TLDR: One prerequisite for a decentralized blockchain is a sufficiently distributed set of validators. This proposal funds the creation of documentation and the time needed to train an initial set of 32 Cardano SPOs as validators for Milkomeda; who will then form a DAO which accepts or rejects new validator applications. After finishing upgrades to the Milkomeda bridge’s Solidity smart contracts we will begin work on this proposal early in 2023.

The importance of security in a world where code is considered law cannot be understated — nor can it be compromised on. Due to a recent increase in high-profile hacks on blockchain bridges and other systems involved in creating an interoperable blockchain future, we chose to delay this proposal until we had conducted a thorough security audit of the Milkomeda bridge contracts.

We recently completed the formal verification of the Milkomeda bridge Solidity smart contracts and are ready to begin working on this grant early in 2023! This work begins with the migration of the Milkomeda C1 testnet to the Cardano Devnet (Preprod Testnet), which is the Milkomeda team’s high priority and will enable further steps into adding new validators.

Milkomeda has achieved many successes since its launch about 10 months ago, including the smooth transition from Baggage, processing over 9.4 million transactions, and passing 3 audits.

Unfortunately, a lot of the tooling wasn’t friendly enough for operators so this made us realize that we needed to start working on a V2 of the full-node right away because it wouldn’t be able to be simple enough. Also we had a lot of issues with cardano-db-sync so we had to create our own cardano indexer (carp).Full Node V1 of Milkomeda consisted of 9 services, but with the upgrade to Full Node V2, only 2 services plus the EVM node are necessary. In Full Node V2.1, a decentralized chat system and a dashboard for validator coordination will also be included.

Decentralization is a tricky process, and Milkomeda is moving forward as quickly as possible without compromising security or stability. The team is also working on decentralizing the selection of validators and implementing more advanced crypto primitives as part of an internal group with IOG. If you’re an SPO and are interested in becoming a Validator for Milkomeda, then be sure to follow our Twitter and Medium, where we’ll be releasing the information and providing links to the documentation!

Fund 8 — The Great Migration (from Ethereum) — Proposal

TLDR: The amount of liquidity a protocol or chain has is directly correlated to how it is perceived by outside users, and, therefore, how likely they are to use it. Here we proposed creating bridging incentives to stimulate users to bridge liquidity from other blockchains to the top DeFi protocols on Milkomeda. We have chosen these DeFi protocols and are currently building incentives programs.

This proposal is designed to support and strengthen both the Milkomeda C1 and Cardano ecosystems by incentivizing the bridging of Liquidity from other blockchains to Milkomeda C1.

We have selected four protocols on Milkomeda C1: Occam DEX, Blueshift, MilkySwap, and MuesliSwap; with whom we are working to build incentive programs to incentivize users to bridge liquidity from other top blockchains to Milkomeda over the numerous bridges that connect Milkomeda C1 to the rest of the blockchain world.

Fund 8 — DApps & Integrations — Proposal

A healthy and thriving ecosystem needs to offer a good quantity and variety of DApps to attract potential users. By running the DeFi hackathon funded in this proposal, we’re going to encourage people to build DeFi DApps on Milkomeda, helping to attract more users who will contribute to an increase in Milkomeda’s, and therefore Cardano’s TVL.

We have begun to structure the DeFi hackathon, building the categories where participants will submit projects and develop their ideas, creating the rules to govern the hackathon, and acquiring media partners. The beginning of the year was, globally, a slow month for DeFi, and to effectively utilize this grant to its fullest extent and generate as much interest as possible, we chose to hold off starting the DeFi Hackathon until March 2023. So keep your eyes on our blog and social media channels as we’ll publish the details and begin accepting applications very soon!

Fund 8 — Cross-Chain Collaboration — Proposal

TLDR: The Milkomeda bridge supports fungible token (ERC20s) transfers, but not the transfer of NFTs (ERC721 and ERC1155), meaning that users can’t transfer NFTs between Cardano and Milkomeda to utilize them on the other network. This proposal funds the development of smart contracts for managing NFT standards and transfers on both sides of the Milkomeda bridge. We have begun building the Plutus smart contracts for this and are actively searching for more developer resources to speed up development here.

GitHub Repository

Smart Contract Release Announcement

We have begun building the Plutus smart contract (open sourced under the MIT license) for minting and burning bridged NFTs on Cardano. This contract creates a unique minting and burning contract for every ERC721 smart contract that is bridged to Cardano from Milkomeda. The contract uses the ERC721 ID to configure the smart contract to ensure that the policy ID for the NFTs is unique.

Due to current constraints on developer resources, we are unable to move forward with this proposal at this moment in time. We anticipate that the next phase of the project will begin in February or March and we are actively working to obtain these developer resources. Work will begin sooner than this if we manage to find these resources earlier than this.

Fund 8 — The Great Migration (from Ethereum) — Proposal

TLDR: The higher a chain’s TVL the more likely users are to take it as a positive sign and consider using that chain, and the incentives provided by this proposals funding will help bootstrap liquidity on Milkomeda so that its DeFi ecosystem can get the boost it needs to begin growing naturally. We held one liquidity competition in 2022 and are planning on others in 2023.

First Incentives Competition Blog Post

We have so far held one cross-chain campaign between December 24th and January 6th to incentivize the moving of liquidity from other top blockchains. This was in partnership with Multichain (bridge) and Blueshift (DEX) with the ambitious goal of moving 1M USD worth of liquidity to the Blueshift DEX over the holiday period. While we did not hit our 1M USD target, and therefore the 25,000 USD in milkADA rewards for Liquidity Providers were not unlocked, we did see an increase in engagement, along with the bridging of almost 80,000 USD worth of liquidity from Ethereum and Binance Smart Chain to the Blueshift DEX on Milkomeda C1.

Despite not hitting our liquidity targets, there are many positives to take from this campaign. We are optimistic about the future success of other campaigns to bridge liquidity to the Milkomeda C1 ecosystem and raise the profile of both Milkomeda and Cardano. We are exploring options for effectively launching other successful farming incentive campaigns in 2023.

Fund 8 — Cardano Scaling Solutions — Proposal

TLDR: Rollups are touted as one of the most viable scaling solutions for blockchains, and zero-knowledge technology is seen as key to helping preserve the individual’s privacy — Cardano is currently missing out on both. This proposal funds the research and development for implementing zk-rollups on top of Milkomeda, as a layer 3 for Cardano, helping Cardano scale further with privacy included. We have been testing Mina’s smart contracts for their capability and suitability and will soon open source our implementations to show our progress.

Video of zk-Based Nonogram Game
Zk Nonogram GitHub Repository
Devnet Deployment of Game

We have reviewed multiple zk-rollup solutions, specifically Mina and zkSync, so that we could validate the tradeoffs of each implementation.

In the past months, we have been working on three smart contracts for Mina to test their capabilities and suitability for our needs on Milkomeda. These contracts are a signing web server using Mina crypto primitives, a smart contract Oracle, and a game. The game smart-contract has been successfully deployed to the Milkomeda testnet, and in February, we opened source all our smart contracts to show our progress on this proposal.

To note something interesting, Mina will enable the creation of trustless Oracles using any website that has a TLS (https), opening up a lot of new use cases not currently possible with other virtual machines. Using zk-snarks Mina’s entire blockchain can fit inside 22kb, which has the potential to eventually become a Cardano smart contract — with a small increase in the Cardano tx limit and the implementation of a new elliptic curve (which is not as big a deal as you might expect, recently secp256k1 was implemented). The current plan is to complete an analysis of how to deploy Mina on top of Milkomeda C1, but with the idea to eventually port this deployment to the Cardano mainnet.

Fund 8 — The Great Migration (from Ethereum) — Proposal

TLDR: Milkomeda is less than a year old and to help speed up adoption we’ve proposed accelerator rounds to help startups looking to build on Milkomeda get their idea launched. The funds from this proposal are going to be used to provide funds to the teams going through the Milkomeda Accelerator (now Incubator), who will also receive world class technical and business support from dcSpark and dlab. The Incubator is now open for applications!

Incubator Website
Release Announcement

At the beginning of January 2023, we started the Milkomeda Incubator, renamed from accelerator to reflect better the flexible way this program now operates to better serve those accepted into it. Do you have a stellar idea that can change the future and become the bedrock of DeFi, NFTs, DAOs, or blockchain Gaming? Then apply to the Milkomeda Incubator, which is now open and accepting applications on the Milkomeda Incubator website! The Milkomeda team is constantly reviewing applications and are making decisions on a rolling basis, so get your application in today!

Each team accepted into the Milkomeda Incubator will receive $10,000 of funding in USDC, access to world-class technical support and business advisors from the teams at dcSpark and dlab, access to a network of startup advisors, mentors, and experts in the web3 space, along with promotion for their project in both the Milkomeda and dlab social media channels, and access to opportunities for future funding! Apply here today!

Fund 8 — Miscellaneous Challenge — Proposal

TLDR: To bolster the early Milkomeda ecosystem we proposed a general hackathon to incentivize and inspire builders to build solutions on top of Milkomeda. The funds received from this grant will be used as prize money for the hackathon, which we will start developing once the DeFi hackathon from above is finished.

We are currently preparing for the DeFi Hackathon discussed above. Once the DeFi Hackathon has finished, we will begin concentrating on the Milkomeda Hackathon. Running both in parallel makes little sense as they will compete with each other, reducing the outcome and resulting in the less-than-optimal utilization of the funds from Catalyst.

Once the DeFi Hackathon has run its course, we will review all elements of the program, as well as feedback from the participants and judges, and use this invaluable information to enhance the Milkomeda Hackathon program, increasing its chance of being highly successful.

Due to a variety of factors, including sourcing the necessary technical expertise and time constraints, we regret to say that we have had to cancel this proposal. We are refunding the funds already received to Project Catalyst so that they can be used to fund other inspiring ideas in the future.

We are disappointed not to be able to fulfill our commitment to this, but ensuring that we produce the highest quality products for the proposals we’ve had funded, in a timely manner, is our utmost priority.

Fund 9 — The Great Migration (from Ethereum) — Proposal

Batch #3 of the Milkomeda accelerator will follow Accelerator Batch #2. This is discussed above in a separate in-progress proposal and is currently accepting submissions through the Milkomeda Incubator website. The experience gained from managing Batch #2 of this program will be invaluable in improving the program for Batch #3 and, therefore, improving the output and optimizing the use of funds received from Project Catalyst, helping us bring even more projects to Milkomeda and bootstrap the Milkomeda ecosystem.

Fund 9 — Developer Ecosystem — Proposal

TLDR: We proposed a single-file, indexable solution for Milkomeda and Cardano that will significantly increase the speed and responsiveness of Cardano indexers, allowing developers to build and iterate at a much faster rate. We have implemented a working prototype and are working on optimizing it.

So far, we have completed and implemented a working prototype for storage, but this needs to be optimized for large datasets. We also see that we can improve the index size and speed, and this is the next step that we’ll be completing so the library can support writing large files of 100s of GBs.

The team working on this project is a global one, and the observation of multiple regional and cultural holidays over the past months has prevented significant progress on this proposal during this period.

Fund 9 — DApps, Products, and Integrations — Proposal

TLDR: Bridging ADA for use on Milkomeda C1 means users miss out on Cardano staking rewards, and this hinders the adoption of Milkomeda. This proposal funds a solution, Liquid staking contracts that allow users to stake their mADA in a smart contract on Milkomeda and receive a representative token, stmADA, that accrues layer 1 (Cardano) staking rewards just like ADA. We have completed the code and are currently addressing the finding of an audit.

The Liquid Staking smart contracts have been completed and reviewed by members of the dcSpark. At the end of last year, we employed a highly reputable auditor, Arbitrary Execution, to audit the code. The findings from that audit have been reported to the Milkomeda team. The team is now working on addressing the findings from this audit and we have provided an update to Catalyst regarding these findings and our progress on addressing them. Once this work is complete, our top priority will be to publish the package to NPM.

Once this is completed and the auditor’s suggestions are implemented, we will continue designing the staking DApp that will allow users to interact with the liquid staking contracts on Milkomeda through a user-friendly UI.

Fund 9 — DApps, Products, & Integrations — Proposal

TLDR: Games are one of the areas where blockchain can positively impact the user experience, however, blockchain gaming does not currently fulfill its potential. This proposal funds the development of a second blockchain game on Milkomeda that doesn’t rely on centralized servers, uses a blockchain-based game engine, and stores data on-chain. We have released a teaser video of the gameplay and our replay player that runs from on-chain data!

The development of the second Milkomeda Game is progressing well. It follows a story arc in the first Milkomeda game, Jungle Wars: NFT Rumble. We shared a video demonstrating proof-of-gameplay that was achieved by implementing a fully-fledged replay player that can replay a match from the data stored on-chain.

This replay player has several advanced features that allow the user to fast forward, pause, jump to any point in the replay, and even change the camera’s view. Check out Paima’s teaser video of the gameplay and see the game in action! Other completed tasks include minor bug fixes, UI improvements, visual effects testing, implementing new actions, and adding in updates to improve the gameplay.

Completed Proposals

All proposals for the Milkomeda with completed work are listed below. Project Close Out Reports and videos, where available, are linked for reference. If a link is not provided, it is due to an administrative resource constraint and will be added as soon as possible.

Fund 6 — Metadata challenge — Proposal

Published Standard in CIP10 Registry

For this proposal, we updated CIP10 with the necessary fields to standardize the decimalization of the outward transfer of assets from Cardano, meaning that the necessary information can now be entered into the Transaction Metadata Label Registry to enable assets to be transferred from Cardano to other blockchains and sidechains in a consistent and reliable manner. All this increases the ease with which assets can be transferred between Cardano and other blockchains.

The main feature of this update was a standard for converting an asset’s decimal entries between different blockchains. This is a necessary standard because assets on the Cardano blockchain often use 6 decimals of precision, i.e., will have up to six decimal places, while assets on EVM-based blockchain use a higher level of decimal precision, typically having 18 decimal places.

This update to the standard ensures that a robust and reliable means now exist for transferring assets between different blockchains, ensuring the consistency and accuracy of those transfers.

Fund 6 — DApps & Integrations — Proposal

Project Close Out ReportProject Close Out Video
GitHub Repository

For this proposal, we built a Cardano multisig coordination Solidity contract, that can create Cardano multisig transactions using any EVM chain as a middleware. This smart contract coordinates the signatories of a multisignature wallet allowing them to create and sign transactions together. As we began research on this proposal we found that there were no completed libraries for building Cardano transactions with multisignature transaction inputs. Most of the existing libraries were only partially completed, but heading down the right track. We, therefore, improved those libraries and used them to help us in writing these multisignature transactions.

The completed smart contracts have been deployed as a part of the Milkomeda bridge and they form the backbone of the security of the Milkomeda protocol. These contracts have been audited twice, and we have recently had this code formally verified. All these reports are available in the footer of the Milkomeda website. The code for these contracts, found in this repository, are now available to be used as one of the important building blocks for creating decentralized bridges from Cardano to any EVM compatible chain.

Fund 6 — Developer Ecosystem — Proposal

Project Close Out ReportProject Close Out Video

We wrote a multi-platform library, found here, to be easily integrated between any Cardano node and Cardano DApp. This library is specifically designed to handle the short-lived branches of blockchains, whose existence can degrade the user experience and make it harder for developers to handle edge cases when developing DApps. This can be used for any blockchain without instant finality, e.g., Cardano or Bitcoin. We also produced a blog post explaining how this works and how both the user and developer experience benefit from the outcome of this proposal.

Fund 7 — Accelerator & Mentors — Proposal

Project Close Out ReportProject Close Out Video
Demo Day Video
Applications Blog Post
Starting the Accelerator Blog Post

We ran a six-week accelerator focused on supporting startups that wanted to build on the Milkomeda C1 sidechain and impact the Cardano ecosystem with their project. We had 60 applications and four projects successfully completed the accelerator program, receiving monetary support from the funds provided by Project Catalyst along with world-class technical and business support from both dcSpark and dlab. To learn more about the projects that went through the accelerator, watch our Demo Day video.

Fund 7 — Miscellaneous Challenge — Proposal

Project Close Out ReportProject Close Out Video
Arbitrary Execution’s Audit
Certik’s Audit
Audits Completed Blog Post

This proposal funded two audits covering all the open sourced components for the Cardano deployment of the Milkomeda C1 sidechain. These audits only covered the Milkomeda components that would be open sourced to the community and, therefore, reusable by other projects — this includes our construct for leveraging Milkomeda for Cardano multisigs and our dApp rollback handler (both funded by Project Catalyst). The closed-source components of the Milkomeda C1 sidechain were audited using private funds. These audits found only one major issue and three medium issues, which were all addressed by the Milkomeda team before releasing these audits. These audits show that malicious actors cannot use many basic, known, and popular attack vectors to compromise Milkomeda. Since these audits, we have also had these contracts formally verified, and the outcome of that formal verification is explained in a blog post.

Fund 7 — DAOs ❤️ Cardano — Proposal

Project Close Out ReportProject Close Out Video

We ran a 21-day hackathon for creating novel and exciting DAO solutions on Milkomeda for use by the Cardano community and beyond. Multiple creative and compelling solutions were built by the teams that took part, and prominent members of the Cardano ecosystem judged the teams’ final products.

We produced two blog posts to help disseminate information to the public both before and after the hackathon. Firstly, our announcement post which detailed the rules of the hackathons, the judges, along with the prizes on offer! Once the hackathon and judging was complete, we produced a results blog post covering the work completed by the teams who won the six prizes that were on offer!

Three teams ultimately took home all the prizes:

1st Place: Oracle DAO — Pitch Video — A DAO utilizing a proof-of-stake model to allow oracles to be held accountable for false or missed reporting by other oracles and users.

2nd Place: Event DAO — Pitch Video — A platform for use by decentralized communities to organize and fund events.

3rd Place: Consensus-Meter by Team Consensus-Meter — Pitch Video — A platform for building agreements in a decentralized manner, utilizing a novel consensus-meter that algorithmically determines a document’s agreement threshold.

This information is also available, along with links to the work of other competitors, in the Milkomeda DAO Hackathon GitHub repository.

Fund 7 — Multilingual Resources — Proposal

This proposal funded the translation of the developer documentation for Milkomeda into multiple languages. We specifically selected languages from regions where Cardano is popular, increasing exposure and accessibility of Milkomeda, and therefore Cardano, in these areas. The languages chosen were Japanese, Korean, and Chinese and these translations have now been deployed to the Milkomeda Documentation for Developers.

Fund 8 — Developer Ecosystem — Proposal

Project Close Out ReportProject Close Out Video
Milkomeda DApp Store
Blog Post Introducing the Milkomeda DApp Store

The Milkomeda DApp store, funded by this proposal, is live on the Milkomeda website, and there you can check out all the DApps and tools you can use on and with Milkomeda! If you’re building on Milkomeda, there is an easy-to-fill-out form for you to get your project listed, and, pending review by one of our team members, your DApp or tool should be listed within 48 hours of your submission!

This DApp store helps people discover what has been and is being built on Milkomeda, along with the tools they can use to improve their Milkomeda experience. The creation of the Milkomeda DApp Store solves one of the most persistent issues in the blockchain world at the moment, DApp discovery.

Fund 8 — Open Source Development Ecosystem — Proposal

Project Close Out ReportProject Close Out Video
Safe Website
Announcement Blog Post
A Guide to Creating a Safe on Milkomeda

We deployed an instance of Gnosis Safe (now just called Safe) to Milkomeda, bringing secure and audited, multi-signature smart contract wallets to Milkomeda and Cardano. These tried, tested, and audited smart contracts give members of the Milkomeda and Cardano communities the ability to easily create customizable and secure multisig wallets to suit their personal and enterprise needs.

These contracts have also been deployed on the Milkomeda testnet, and we have released a guide detailing how a user can easily set up their own Safe.

Fund 8 — Open Source Development Ecosystem — Proposal

Project Close Out ReportProject Close Out Video
GitHub Repository
Explainer Blog Post

Completing this proposal meant open-sourcing the infrastructure for a node for the Milkomeda C1 sidechain, allowing developers to easily spin up their own node -either a full node or an archive node- and contribute to the decentralization of Milkomeda C1.

Importantly, open sourcing-allows developers to run their own nodes for their applications, meaning they can query the blockchain and perform their own checks and balances on blockchain activity. One of the most significant benefits of finishing this proposal is that it makes it easier for developers and DApps to onboard into the Milkomeda and, therefore, Cardano ecosystem.

Fund 8 — DApps & Integrations — Proposal

Game Website
Direct Game Link
Game Release Blog Post

Paima Studios has built and released its first fun and compelling game, Jungle Wars: NFT Rumble. It is built on top of Milkomeda C1 and utilizes a novel layer 2 for on-chain games called Paima Engine. This engine supports new gaming primitives, such as attaching game states to NFTs in a new type of NFT that we’ve called stateful NFTs. The Paima Engine supports any programming language and enables richer gaming & gamification use cases.

Jungle Wars is a PvP game where players are immersed in a dynamic battle for survival in territorial jungle battles. Players submit three actions (move, shoot, or taunt) to the blockchain at a time, and the Paima Engine then executes the players’ moves in a random order, introducing a layer of complexity and chance to the game.

To support the game’s release, drum up hype, and help bring players to the game, multiple blog posts were released on the Paima Studio’s Blog, covering the story behind the game along with the novel concepts introduced by Paima Engine, such as stateful NFTs. We also conducted an AMA with Big Pey to help us build a strong community on the Paima Studios Discord server and introduce more users to the novel solutions being built on top of Milkomeda.

Fund 8 — Open Source Development Ecosystem — Proposal

Project Close Out ReportProject Close Out Video
Milkomeda Bridge Explorer

Essentially, the Milkomeda Bridge Explorer is a blockchain explorer that supports two chains. Previously there was no single place a user could go to to find both sides of their wrapping or unwrapping transactions, making tracking these transactions difficult and resulting in a poor user experience for users bridging assets from one chain to the other.

The Milkomeda Bridge Explorer now tracks and stores all wrapping and unwrapping events for Milkomeda C1, displaying them -with links- and other Milkomeda bridge metrics in a convenient and easy-to-use dashboard; a much more friendly user experience! For bridge transactions, the explorer gives links to BlockScout, for transactions on the Milkomeda C1 side of the bridge, and Cexplorer, for transactions on the Cardano side of the bridge.

Fund 9 — DApps, Products, & Integrations — Proposal

Project Close Out ReportProject Close Out Video

Djed is an over-collateralized, crypto-backed, algorithmic stablecoin that acts in a “central-bank-like manner”. Djed uses a unique pegging mechanism and reserve ratio functionality to help it maintain a large enough crypto reserve to maintain its peg to a fiat-based currency, e.g., the dollar. Djed was initially outlined in this scientific paper which gives two versions of the Djed stablecoin, Minimal Djed, and Extended Djed.

While Djed was initially described for UTxO blockchains there’s no reason it cannot also be deployed to EVM-based blockchains. To help increase the visibility of Djed and the public and developer education around it we implemented Minimal Djed in Solidity, thoroughly tested the contracts, and then successfully deployed an instance of Minimal Djed on the Milkomeda Testnet. We also created a blog post that walks the reader through how to interact with this Milkomeda C1 deployment of Minimal Djed. In this instance of Djed we set the minimum reserve ratio at 400% and the maximum reserve ratio at 600%. Meaning that, under normal market conditions each dollar of StableDjed is backed with between 4–6 dollars of ReserveDjed. More can be learnt about this deployment of Minimal Djed in our Project Close Out Video.

Follow Us to Keep Up to Date on Our Progress!

Our work on continuing to enhance the user experience with the Milkomeda protocol and to help drive traffic and projects to the Milkomeda, and therefore Cardano, ecosystem continues unabated. If you have any questions about the work completed, or the work currently being undertaken, on any of these proposals, please don’t hesitate to reach out to us, either on our core developer’s Discord or on our Twitter.

If you want to be the first to hear about the completion of any of our in-progress Project Catalyst proposals, or to hear about any proposals that you can support in future Project Catalyst funding rounds, follow us on your favorite form of social media!

Learn more about Milkomeda:

Website: milkomeda.com
Twitter: @Milkomeda_com
Medium: @milkomedafoundation
dApp Store: /dapp-store

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