Stellar Community Fund

By Soroswap.Finance

Soroswap.Finance Aggregator

SCF #21

$100.0K

Legacy v5.0 Community Award

Awarded

Open-source AMM protocol with Ecosystem Interoperability for providing liquidity and trading Stellar Assets in Soroban.

Products & Services

Soroswap.Finance 🪐 is an Open-Source Automated Market Maker (AMM) to trade Stellar assets in Soroban. Currently, you can experiment 🧐 the current version in Testnet at https://soroswap.finance 🖥. Thanks to SCF, we've achieved a user-friendly experience, offering functional Pair, Factory, Library, and Router Contracts. All our code is available on https://github.com/soroswap/, and comprehensive documentation can be found at https://docs.soroswap.finance/.

From our collaboration experiences and participation in other ecosystem’s conferences, we have identified 3 areas of enhancement for this SCF round:

1. Optimal Routing and AMM Aggregator: Leverage Mercury Indexer to calculate optimal routing within Soroswap as well as an optimal split of swaps between other ecosystem participants and Stellar Classic DEX. 2. Bridge Integration: Explore ecosystem’s bridges with other ecosystems to offer users the possibility to bring their Liquidity into Soroban in one platform. 3. More information to the user: Leverage Mercury Indexer to enhance user information and create a user’s dashboard with Liquidity Pool and Stellar Asset information. Work with a UX agency.

To achieve these goals, the Soroswap.Finance team will continue with its commitment to contribute to the Soroban ecosystem by providing 100% open-source code for all our deliverables.

In the following, we explain each of these areas:

1. 🔀 Optimal Routing: We will implement the Mercury Indexer 🌟 to monitor all pair reserves. We will create an optimization algorithm that calculates the most efficient route within Soroswap. This will enhance the existing Router Contract. - 💡 What does this solve?: It addresses token swaps in situations where no direct pair exists, or when there is low liquidity by determining the best possible path.

2. 🎛 AMM Aggregator: We will implement the Mercury Indexer 🌟 to track and monitor other ecosystem AMMs and DEXes like Comet ☄️, Phoenix 🦩, the Stellar Classic DEX, and Orderbook to combine and optimize trades to find the best prices and liquidity. It allows splitting swaps across multiple routes. - 💡 What does this solve?: Solves the low liquidity problem and liquidity split in various protocols. Thanks to the low transaction fees in Stellar, we could find the optimal trade even if the liquidity is divided across protocols.

3. 🌉 Bridges Exploration: We will explore existing bridges to offer easy cross-blockchain swaps. Deliverable: POC integration of one bridge. - 🤔 Which bridge?: From our participation in the sub0 2023 Polkadot Conference, we have been in contact with developers in the Pendulum / Amplitude (parachains in Polkadot / Kusama) team and other players in the Polkadot Ecosystem. We will explore the Skywalk (bridge that Pendulum has developed between Stellar and Polkadot (https://pendulumchain.org/spacewalk). As a strategy for Soroban, Pendulum is very important because it is also focused on offering financial services using stablecoins to businesses and fintech companies. And it’s very focused on forex. - Another Bridge that we will explore is AllBridge, specifically its bridge with Ethereum due to its high Liquidity of the aeUSDC token in Stellar. - 💡 What does this solve?: Easy onboarding into Soroban DeFi products for other ecosystem players. This together with the on/off ramp exploration could solve a cash-out problem for people in Polkadot and Ethereum. - 🧘🏽‍♀️ What audience? New DeFi users from the Polkadot and Ethereum ecosystems.

4. 📊 More information to the user: Leverage Mercury 🌟 Indexer to create a user’s dashboard, Liquidity Pool, and Stellar Asset information. In order to achieve this, we will continue our collaboration with the LitCollective UX and Design agency. We are going to show last trades (value, token amount, account, link to explorer), TVL info for each Liquidity pool, expected APY, Volume, and more. - 💡 What does this solve?: It overcomes the information deficit for informed investment decision-making. This solution also improves data accessibility, transparency, and the user experience within the Stellar ecosystem.

For all, Soroswap.Finance is committed to continue contributing to the Soroban ecosystem by providing 100% open-source code. All that we will do will be documented and shared with the community.