[RFP]: Polkaswap Reoccurring Buys ADCA ( Auto Dollar cost Averaging ) Touching grass #102
Comments
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This is a well thought out proposal. I like the addition of trades based off numerous variables other than time/blocks. However im unsure of the difference between volatility and price movement. Is the difference being the initial asset value used to purchase the token increases based off volatility? |
Yes with the metrics laid out the system is very flexible and can be set to a degree to manage volatility to a degree but in crypto I like to work from the worst case scenario hence by spreading investments over time, reducing the impact of market fluctuations. Higher volatility might necessitate more frequent buys to take advantage of price swings. |
Proposal Due Date
11/01/2024
Proposal Overview
The proposal focuses on implementing a feature for Recurring Buys on Polkaswap, allowing users to give permission to the platform to automatically deduct funds from their crypto wallet or SORA Card account. These funds would be used to buy selected coins based on customizable metrics such as time intervals, price movements, volatility percentages, or a combination of these and other variables. This feature is termed Auto Dollar Cost Averaging (ADCA), also known as "Touching Grass."
Benefits to the SORA Ecosystem
Steady Capital Inflow:
Recurring buys ensure a consistent inflow of capital, contributing to liquidity and stability in trading pairs on Polkaswap.
User Engagement and Retention:
By automating investments, users are more likely to remain engaged with the ecosystem, leading to higher retention and increased long-term participation.
Risk Mitigation:
ADCA helps users mitigate market volatility by spreading investments over time, reducing the impact of market fluctuations.
Simplified Financial Management:
Users can automate their investment strategies according to their financial goals, making it easier to manage investments without constant manual intervention.
Increased Trading Volume:
Regular buys increase trading volume on Polkaswap, enhancing liquidity and attracting more traders and investors.
Differentiation from Existing Solutions
Customizable Metrics:
Unlike other platforms that may offer basic recurring buys, this proposal emphasizes customizable metrics like time intervals, price movements, and volatility percentages, offering a more tailored investment strategy.
Integration with SORA Card:
The feature integrates seamlessly with the SORA Card, allowing users to fund their recurring buys directly from their card account, creating a unified financial ecosystem.
Enhanced Automation:
The proposal highlights a high level of automation, reducing the need for manual intervention and enabling users to set and forget their investment strategies.
Incentive Programs:
Unique incentives, such as reduced trading fees or enhanced rewards for users participating in recurring buys, make this feature more attractive compared to standalone ADCA solutions.
How It Works and Integrates into the SORA Ecosystem
User Setup:
Users set up recurring buys through the SORA mobile app, Fearless wallet, or directly on Polkaswap.
They can choose specific metrics such as time intervals (daily, weekly, monthly), price movements, volatility percentages, or combinations of these variables.
Users grant permission for the platform to deduct funds from their crypto wallet or SORA Card account.
Automated Execution:
The system automatically executes buy orders based on the user-defined metrics. For example, it can trigger purchases at specific time intervals or when the price drops by a certain percentage.
Integration with SORA Card:
The SORA Card balance reflects the assets acquired through recurring buys. Users can manage these assets, view their growth, and use them for transactions directly with their card.
Liquidity Management:
Backend systems ensure sufficient liquidity on Polkaswap to handle recurring buy orders. Liquidity pools for various assets are maintained and monitored to facilitate seamless transactions.
Rewards and Incentives:
Users participating in recurring buys and ADCA receive additional rewards, such as increased crypto-back percentages or higher APY rates, incentivizing regular investment and engagement.
Security and Compliance:
Robust security measures, including two-factor authentication, encryption, and compliance with KYC/AML regulations, protect user funds and data.
User Support and Education:
Comprehensive support channels and educational content help users understand and optimize their recurring buy strategies. This includes tutorials, FAQs, and customer support to assist with any issues.
Proposal Goals
The primary goal of the proposal is to introduce a Recurring Buys feature on Polkaswap that integrates with the SORA ecosystem, allowing users to automate their investment strategies through Auto Dollar Cost Averaging (ADCA). This feature aims to:
Enhance User Experience:
Simplify the investment process by automating recurring buys, making it easier for users to manage their crypto investments without constant manual intervention.
Increase User Engagement:
Encourage continuous user participation and retention by providing a convenient and automated way to invest in the SORA ecosystem.
Boost Liquidity and Stability:
Ensure a steady flow of capital into Polkaswap, enhancing liquidity and market stability.
Mitigate Investment Risks:
Help users manage market volatility by spreading investments over time, reducing the impact of sudden market fluctuations.
Integrate Financial Services:
Seamlessly integrate with the SORA Card, allowing users to fund their investments directly from their card account and creating a unified financial ecosystem.
Problem It Solves
The proposal addresses several key issues within the current SORA ecosystem and the broader cryptocurrency market:
Manual Investment Management:
Problem: Managing crypto investments manually requires constant monitoring of the market, making timely decisions, and executing trades, which can be time consuming and prone to emotional decision making.
Solution: The recurring buys feature automates the investment process, allowing users to set their preferences once and let the system handle the rest.
Market Volatility:
Problem:
The crypto market is highly volatile, and making lump sum investments can expose users to significant risks if the market moves unfavorably.
Solution:
ADCA helps users spread their investments over time, reducing the impact of market volatility and averaging out the purchase price of assets.
Low User Engagement and Retention:
Problem: Without easy to use and automated investment options, users may disengage from the platform or move to competitors that offer better features.
Solution: By providing a user-friendly automated investment option, the proposal aims to keep users engaged and retained within the SORA ecosystem.
Liquidity Challenges:
Problem: Inconsistent capital inflow can lead to liquidity issues on decentralized exchanges like Polkaswap, affecting trading efficiency and user experience.
Solution: Recurring buys ensure a steady inflow of capital, enhancing liquidity and improving overall trading conditions on Polkaswap.
Fragmented Financial Services:
Problem: Users often have to manage multiple accounts and services separately, leading to a fragmented financial experience.
Solution: Integrating recurring buys with the SORA Card offers a cohesive financial ecosystem where users can manage investments and spending from a single platform.
Scope of Work
Implementing the Recurring Buys feature with Auto Dollar Cost Averaging (ADCA) into the SORA ecosystem involves several key areas: technical development, user interface design, backend integration, security, compliance, and marketing. Here’s a detailed breakdown of the scope and amount of work required:
Technical Development
API Integration
Task: Develop and integrate APIs to connect Polkaswap with users' crypto wallets and SORA Card accounts.
Effort: Medium to high, depending on existing API infrastructure and documentation
Automated Transaction Processing:
Task: Create backend processes to handle automated recurring buys based on user-defined criteria (time, price movement, volatility, etc.).
Effort: High, as it involves real time transaction execution and monitoring.
Data Analytics and Monitoring:
Task: Implement systems to track market conditions and execute trades based on predefined algorithms.
Effort: High, requires sophisticated data analysis and real-time processing capabilities.
User Interface Design
User Dashboard
Task: Design a user-friendly interface within the SORA mobile app and Polkaswap platform for setting up and managing recurring buys.
Effort: Medium, with focus on usability and seamless integration with existing features.
Notification System:
Task: Develop a notification system to inform users about executed trades, market conditions, and performance of their investments.
Effort: Medium, ensuring timely and relevant notifications.
Backend Integration
Wallet and Card Integration
Task: Ensure seamless integration between users' crypto wallets, SORA Card accounts, and Polkaswap for fund transfers and transaction executions.
Effort: High, requiring secure and efficient fund management protocols.
Algorithm Implementation:
Task: Develop and implement algorithms for ADCA that can operate based on customizable metrics like time intervals, price movements, and volatility.
Effort: High, involving complex algorithm design and testing.
Security and Compliance
Security Protocols:
Task: Implement robust security measures including encryption, multi-factor authentication, and fraud detection to protect user data and funds.
Effort: High, ensuring compliance with industry standards and best practices.
Regulatory Compliance:
Task: Ensure the solution complies with relevant financial regulations, including KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements.
Effort: Medium to high, depending on jurisdictional requirements.
Marketing Campaigns:
Task: Develop and launch marketing campaigns to promote the new recurring buys feature to existing and potential users.
Effort: Medium, focusing on creating awareness and educating users on the benefits.
Educational Resources:
Task: Create tutorials, FAQs, and support content to help users understand and effectively use the ADCA feature.
Effort: Medium, ensuring comprehensive and accessible educational material.
Equation for Optimal ADCA Timing
To create an equation for determining the best time to execute ADCA, we need to consider factors like time intervals, price movement, and volatility. A simplified version of the equation could look like this:
Explanation:
Price Movement (P_{t-1} - P_t): This captures the change in price since the last purchase. A larger price drop would result in a higher trigger value.
Volatility (V_t): This adjusts the trigger based on how volatile the asset is. Higher volatility might necessitate more frequent buys to take advantage of price swings.
Time Interval (\Delta T): This normalizes the trigger value over the time elapsed, ensuring that buys are spaced out based on user preferences.
Detailed Steps for Implementation
Project Planning and Requirement Gathering:
🔴 Define project scope, objectives, and deliverables.
🔴 Gather requirements from stakeholders and users.
🔴 Estimate timelines and resource allocation.
Technical Architecture and Design:
🔴 Design the overall architecture, including APIs, backend systems, and user interfaces.
🔴 Develop detailed design documents for each component.
Development Phase:
🔴 API Integration: Develop and test APIs for wallet and card integration.
🔴 Backend Development: Build transaction processing and data analytics systems.
🔴 Algorithm Implementation: Develop and test ADCA algorithms.
User Interface Development:
🔴 Design and develop user dashboards and interfaces.
🔴 Implement notification systems and user management features.
Security and Compliance Implementation:
🔴 Integrate security protocols and conduct regular audits.
🔴 Ensure compliance with KYC and AML regulations.
Testing and Quality Assurance:
🔴 Conduct unit, integration, and system testing.
🔴 Perform user acceptance testing (UAT) with a beta group.
Deployment and Launch:
🔴Deploy the solution to production environments.
🔴Launch marketing campaigns and user education initiatives.
Monitoring and Support:
Implement monitoring systems to track performance and user activity.
Provide ongoing support and iterate based on user feedback.
Current Roadblocks and Barriers to Success
API Integration Complexity:
Risk: Ensuring seamless and secure integration between users' crypto wallets, SORA Card accounts, and Polkaswap can be complex.
Attention Needed: Rigorous testing and validation of APIs to handle various edge cases and ensure robustness.
Algorithm Accuracy:
Risk: Developing an algorithm that effectively balances time, price movement, and volatility to execute optimal trades is challenging.
Attention Needed: Extensive backtesting and real-world scenario testing to validate the algorithm's performance.
Scalability and Performance:
Risk: Handling potentially high transaction volumes and real-time data processing can strain system resources.
Attention Needed: Ensure the backend infrastructure is scalable and optimized for performance under load.
Data Protection:
Risk: Storing and managing sensitive user data, including financial information, poses significant security risks.
Attention Needed: Implement state of the art encryption, multi-factor authentication, and regular security audits.
Transaction Security:
Risk: Automated transactions increase the risk of unauthorized access and potential fraud.
Attention Needed: Develop robust fraud detection systems and transaction monitoring protocols.
User Interface Complexity:
Risk: Designing a user interface that is both comprehensive and easy to use can be challenging.
Attention Needed: Conduct user experience (UX) research and iterative design testing to ensure the interface is intuitive.
User Education:
Risk: Users may find it difficult to understand and effectively use the ADCA feature.
Attention Needed: Provide comprehensive educational resources, tutorials, and support to help users.
Varying Regulations:
Risk: Navigating the complex regulatory landscape across different jurisdictions can be difficult.
Attention Needed: Engage legal experts to ensure compliance with all relevant regulations, including KYC and AML requirements.
Continuous Compliance:
Risk: Regulatory requirements can change, requiring ongoing compliance efforts.
Attention Needed: Establish a dedicated compliance team to monitor regulatory changes and ensure ongoing compliance.
Market Volatility:
Risk: High market volatility can lead to unexpected outcomes, affecting the effectiveness of the ADCA strategy.
Attention Needed: Continuously monitor market conditions and adjust algorithms and strategies accordingly.
User Adoption:
Risk: The success of the feature depends on user adoption and engagement.
Attention Needed: Develop targeted marketing campaigns and incentivize early adopters to build momentum.
Support and Maintenance:Risk:
Providing timely support and maintenance for the new feature requires additional resources.
Attention Needed: Scale the support team and establish clear process for addressing user issues and feedback.
It is crucial to pay special attention to the following areas:
Technical Integration and Scalability: Ensure robust and seamless integration of APIs and backend systems capable of handling high transaction volumes.
Security: Implement strong security measures to protect user data and transactions.
User Experience and Education: Design an intuitive user interface and provide extensive educational resources.
Regulatory Compliance: Stay compliant with all relevant regulations and be prepared for ongoing compliance efforts.
Operational Readiness: Continuously monitor market conditions, support user adoption, and provide timely maintenance and support.
Evaluation Metrics and Criteria
1 Requirements Gathering:
All functional and nonfunctional requirements are documented and approved.
User stories and acceptance criteria are clearly defined and validated with stakeholders.
Design Documentation:
High-level and detailed technical design documents are created and reviewed.
API specifications and integration points with existing systems (SORA, Polkaswap, SORA Card) are defined.
Security and compliance requirements are documented and reviewed.
Implementation:
All user stories and acceptance criteria are implemented.
API integrations with SORA, Polkaswap, and SORA Card accounts are completed.
The ADCA algorithm is developed, including handling time, price movement, and volatility parameters.
Code Review and Quality Assurance:
All code is reviewed and meets coding standards.
Automated unit tests and integration tests cover at least 90% of the codebase.
Security audits and vulnerability assessments are completed and any issues resolved.
Functional Testing:
All features are tested against the acceptance criteria and pass.
End to end testing of the entire workflow, including API integrations and transaction processes.
User interface is tested for usability and correctness.
Performance and Load Testing:
System is tested under expected load conditions to ensure scalability and performance.
Stress testing is conducted to identify any potential bottlenecks or failures under peak loads.
User Acceptance Testing (UAT):
Selected users participate in UAT and provide feedback.
Any issues identified during UAT are resolved.
PreDeployment Checklist:
All testing environments are successfully validated.
Deployment scripts and rollback plans are prepared and tested.
Documentation for deployment, including installation and configuration guides, is completed.
Deployment:
The feature is deployed to the production environment.
Monitoring and logging systems are set up to track the performance and health of the feature.
Monitoring and Support:
The system is continuously monitored for performance, security, and any anomalies.
A dedicated support team is available to address any user issues or incidents.
User Feedback and Iteration:
Collect user feedback post launch to identify any usability issues or improvement areas.
Implement any necessary fixes or enhancements based on feedback.
Documentation and Training:
Comprehensive user manuals, FAQs, and support documentation are available.
Training sessions or webinars are conducted to help users understand and use the new feature.
Stakeholder Review and Approval:
Key stakeholders review the final implementation and provide approval.
A final sign off meeting is conducted to confirm all DoD criteria are met.
Definition of Done Checklist
Requirements and Design:
Requirements are documented and approved.
Design documents are reviewed and approved.
Development:
User stories and acceptance criteria implemented.
API integrations completed.
ADCA algorithm developed.
Testing:
Functional tests passed.
Performance and load tests passed.
UAT completed and feedback addressed.
Deployment:
Pre deployment checklist completed.
Feature deployed to production.
Post Deployment:
Monitoring systems active.
User feedback collected and addressed.
Documentation and training completed.
Final Sign Off:
Stakeholder review and approval obtained.
Final sign off meeting conducted.
Submission Requirements
Criteria for Submission Review and Success
To ensure that the submission for the Recurring Buys with Auto Dollar Cost Averaging (ADCA) feature is reviewed and considered a success, it must meet a comprehensive set of criteria. These criteria span across various aspects including functional requirements, technical specifications, user experience, security, and compliance. Here are the detailed criteria:
Core Functionality:
The system must support recurring buys on Polkaswap with customizable metrics (time, price movement, volatility, etc.).
Users should be able to give permission for automatic charges from their crypto wallets or SORA Card accounts.
Users must be able to select the specific coins for recurring buys.
Customization and Flexibility:
The feature should allow users to customize recurring buy settings based on various metrics.
Users must be able to modify, pause, or cancel recurring buys at any time.
Notifications and Alerts:
The system should provide notifications for transactions, adjustments, and any errors.
Users should receive alerts for significant price movements or changes in recurring buy settings.
API Integration:
Seamless integration with Polkaswap and SORA systems.
APIs should be well documented and adhere to industry standards.
Performance and Scalability:
The feature must handle expected user loads and transactions without performance degradation.
The system should be scalable to accommodate future growth in user base and transaction volume.
Security and Compliance:
All transactions and user data must be securely handled.
Compliance with relevant regulations and industry standards (e.g., GDPR, KYC/AML).
User Interface:
The user interface must be intuitive, user-friendly, and consistent with the SORA ecosystem's design language.
Clear and simple workflows for setting up and managing recurring buys.
User Documentation:
Comprehensive user guides, FAQs, and support materials must be provided.
Tutorials or walkthroughs to help users understand and utilize the feature.
Testing:
Extensive testing covering unit tests, integration tests, and end-to-end tests.
User Acceptance Testing (UAT) with feedback addressed.
Bug Fixes and Improvements:
All identified bugs must be resolved.
Continuous improvements based on user feedback and testing results.
Monitoring:
Real time monitoring of the feature for performance and security issues.
Robust logging and alerting mechanisms.
User Support:
Dedicated support channels for users to report issues and get assistance.
Timely resolution of user-reported issues and continuous user engagement.
Review and Approval:
Regular reviews with stakeholders to ensure alignment with business goals and user needs.
Final approval from key stakeholders confirming that the feature meets all requirements and expectations.
Success Criteria Checklist
Functional Requirements:
Support for recurring buys with customizable metrics.
User permissions for automatic charges.
Selection of specific coins for recurring buys.
Technical Specifications:
Seamless API integration with Polkaswap and SORA.
Performance and scalability requirements met.
Compliance with security and regulatory standards.
User Experience:
Intuitive and user friendly interface.
Comprehensive user documentation and support materials.
Quality Assurance:
Extensive testing with all issues resolved.
Continuous improvements based on feedback.
Post Launch Support:
Real time monitoring and alerting.
Dedicated user support and issue resolution.
Stakeholder Approval:
Regular reviews and feedback addressed.
Final stakeholder approval obtained.
Submission Method
Blockchain: Mainnet
Project Due Date
01/15/2025
Budget Amount
This is at the discretion of teh development team.
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