Thread by @Milkomeda_com

Stay up to date!

To provide transparency regarding Catalyst funding, we will be sharing monthly updates on our Project Catalyst proposals and their progress. Our first update is here. 🧵

#Milkomeda
#CardanoCommunity
#Cardano

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🔥Solve Asset Fractionalization: Fund 9
When an asset is bridged to Milkomeda over different bridges, each bridge creates an alternate version of the same asset. Although representing the same thing, they can no longer be used together,e.g. combined in the same liquidity pool. /2

In this proposal, 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.

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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 transferred over the Multichain bridge, it becomes the wrapped asset multiUSDC.

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This means we have multiple assets, one for each bridge, representing the same original asset. Although ceUSD and multiUSDC appear equivalent to the user, the blockchain recognizes them as distinct assets as they originate from different bridges and contracts.

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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.

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Using our 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.

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These contracts have been deployed for internal testing on the testnet & we're reviewing the results. The contracts have undergone an audit & all issues have been addressed. We've also begun developing the UI for interacting with these smart contracts & canonicalizing assets.

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Upon release, we'll have blogposts describing the problem, our solution, & we'll present the principles of Treasury idea, which is meant to protect against potential bridge hacks. We're also working on documentation to allow other developers to utilize these smart contracts.

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🔥Milkomeda Accelerator Batch #2: Fund 8
To help speed up adoption, we’ve proposed multiple accelerator rounds to help startups looking to build on Milkomeda. The funds from this proposal are used to provide funds to the teams going in the Milkomeda Accelerator (now Incubator)/10

In January 2023, we started the Milkomeda Incubator, renamed from accelerator to better reflect the flexible way this program now operates to better serve those accepted. Do you have an idea that can change the future & become the bedrock of DeFi, NFTs, DAOs, or Gaming?

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Then apply to the Milkomeda Incubator. It is now open and accepting applications on the Milkomeda Incubator website! The Milkomeda team is constantly reviewing applications and is making decisions on a rolling basis, so get your application in today!

milkomeda.com/incubator/

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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_io and @dlabvc.

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They will also have access to a network of startup advisors, mentors, and experts in the web3 space, along with promotion for their project in both the @Milkomeda_com and @dlabvc social media channels and access to opportunities for future funding. Apply today!

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🔥Farming Incentives to Move Liquidity: Fund 8

When a chain's TVL is higher, users are likely to take it as a positive sign & will consider using it. Incentives from this proposal will help bootstrap liquidity on Milkomeda to boost its DeFi ecosystem so it can grow naturally./15

So far, we have held one cross-chain campaign between December 24th-January 6th to incentivize liquidity moving from other top blockchains. This was in partnership with @MultichainOrg (bridge) and @blueshiftfi (DEX) with the ambitious goal…

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cont. of moving 1M USD worth of liquidity to the @blueshiftfi 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…

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cont. along with bridging 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.

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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 how to effectively launch other successful farming incentive campaigns in 2023.

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🔥Liquid Staking for Milkomeda/L2: Fund 9

Currently, when you move your ADA to Milkomeda C1, you lose your staking rewards. With liquid staking, we designed a standard for Milkomeda to allow its users to keep earning staking rewards.

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The code for the Liquid Staking smart contract has been completed & reviewed by members of dcSpark. At the end of last year, we employed a highly reputable auditor, Arbitrary Execution, to audit the code.

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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 in addressing them.

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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 C1 through a user-friendly UI.

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For more information on our in-progress proposals or a link to our past/finished proposals, check out the Catalyst section of our Linktree, which you can find in our Twitter profile.

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We want to express our gratitude to the Cardano and Milkomeda communities for supporting our Catalyst proposals. We look forward to providing additional tools and interoperability solutions to the ecosystem!

#Milkomeda
#Cardano
#CardanoCommunity
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