HIP-13 [DG] Gateway connector for the Algorand chain including Algofi, Pact, Tinyman DEX connectors

Title

HIP-13 [DG] Gateway connector for the Algorand chain including Algofi, Pact, Tinyman DEX connectors

Category

Gateway

Summary

1. Develop support for the Algorand blockchain by building an Algorand gateway connector
2. Develop Algorand DEX connectors for Pact.fi Algofi and Tinyman DEX on Algorand

Linked HGP

HGP-8

Description

Please see below.

Contributor Github Handles

• https://github.com/amitdeshmukh
• https://github.com/AlgoDoggo

Ethereum Wallet

0x71545Bd49815f3280b7962564F58229eb8Aa882C

Total HBOT requested

1,800,000 HBOT

Total Contributors

2 confirmed and 1 additional contributor yet to be recruited

Estimated Dev Days per Contributor

On average, 30 development days per contributor spread over 3 months.

HBOT Per Day

20,000 HBOT

Total HBOT for each Contributor

The development effort will be undertaken by Meld Ventures and the total bounty will be split based on the % contribution of each team member involved.

Description

Proposal

We propose to develop a Gateway-v2 connector for the Algorand blockchain to allow Hummingbot clients to be able to access the chain.

In addition, we propose to integrate the following Algorand DEX's by building exchange connectors for them:

• Algofi
• Pactfi
• Tinyman

This will provide the following benefits to users of Hummingbot:

• Access liquidity on a Layer-1 chain with strong decentralization, fast finality and cheap transactions.
• Access token pools for the growing number of Algorand ecosystem DeFi projects
• Allow more users to get access to arbitrage opportunities that currently exist on Algorand

Proposed Changes

Add code to support the Algorand blockchain. Add code to support Tinyman DEX. Add code to support PactFi DEX. Add code to support Algofi DEX. Make any required changes to the Hummingbot client to support changes to the gateway.

Requirements for each change

• Implement functionality
• Provide unit tests for gateway connectors
• Test run on testnet and mainnet
• Test the Arbitrage strategy in Hummingbot client
• Raise a PR

Motivation

Meld Ventures has been involved with several projects within the Algorand ecosystem from the blockchain's early days. We truly believe in the tech and we envison a future where the Algorand chain could be used as a settlement layer for multi-chain transactions due to its speed and cheap transaction costs without sacrificing on decentralization and security.

Algorand has a growing list of Defi and other use cases, and ideally poised for multi-chain settlements with Algomint and Wormhole providing cross-chain liquidity be means of bridges into Algorand.

With the additional liquidity expected to arrive into Algorand, we are keen to help the Hummingbot community access the DEXs on Algorand to be able to run strategies such as Arbitrage and Market making on Algorand DEXs.

Contributors

The development effort will be undertaken by Meld Ventures. We have confirmed the following developers who will work on the project, and are in the process of recruiting an additional developer to help out with development.

• Amit https://github.com/amitdeshmukh
• Aurel https://github.com/algodoggo

Code Delivery and Presentation

We intend to make 4 pull requests to the hummingbot codebase:

• Algorand Gateway-v2 connector
• Tinyman DEX exchange connector
• Pactfi DEX exchange connector
• Algofi DEX exchange connector

After connectors have been built, we intend to initially run Hummingbot strategies on testnet, followed by mainnet. Any code changes required will be submitted as additional pull requests.

We will document usage of the connectors and also participate in community calls / AMAs to answer questions.

Current Progress and Delivery Estimation

We have analysed the existing codebase to determine that an integration is possible and also have attended Hummingbot foundation office-hours to discuss our plans with the foundation developers.

We estimate that we would be able to deliver the code and finish testing on testnet and mainnet by 31st October 2022.

References

About Algorand

Algorand is an open-source Layer-1 blockchain platform based on the Pure Proof of Stake (PPoS) consensus model, which recruits network operators from the entire pool of ALGO coin holders to produce blocks.

The Algorand platform is designed to process many transactions quickly, similar to a major payments processor like Mastercard or Visa. Algorand can host other cryptocurrencies and blockchain-based projects, making it a direct competitor to other Layer 1's such as Ethereum. ALGO, the platform's native currency, is used to secure the Algorand blockchain and pay processing fees for Algorand-based transactions which are currently around $0.0004 per transaction.

Algorand has partnerships with entities such as FIFA, Drone Racing League and others and is expected to see strong traction among users in the coming months.

About Pact

As one of the most user-friendly Algorand dApps, Pact is a mobile-first designed trading experience offering deep liquidity and low transaction fees. With accessible smart contract functionality, transactions on Pact are available to users of all levels of wealth and experience.

About Tinyman

Tinyman is a reimagined decentralized trading protocol, utilizing the fast and secure framework of the Algorand blockchain to create an open and safe marketplace for traders, liquidity providers, and developers. Tinyman, built by a team with experienced fintech backgrounds, is on a mission to realize the full potential of DeFi, or financial tools that run on blockchain and are inclusive, accessible, and profitable for users far and wide. With the community-focused, cheap, fast, and fully permissionless Tinyman protocol, users are able to trade any Algorand Standard Asset (or Algo) through liquidity pools using an Automated Market Maker (AMM) algorithm.

About Algofi

Algofi is a fast, low-cost crypto lending market on the Algorand blockchain that makes decentralized lending broadly accessible. Algofi aims to be the first crypto-native bank that bridges the gap between traditional and decentralized finance. Algofi's fiat on-ramp allows users to buy crypto and earn interest without a bank or centralized custodian. In addition, traders can use Algofi to go short or to trade with leverage. In the future, Algofi will offer more traditional banking services like savings accounts and credit cards, all powered by the growing DeFi ecosystem on Algorand.

About Meld Ventures

Meld Ventures is an Australian based firm dedicated to backing the next wave of blockchain entrepreneurs. We support bold innovative projects across multiple industries including DeFi, Supply Chains, Commodities, NFT's and Finance. Meld Ventures invests in FutureFi.