The 13th KIR: Open-Source Decentralized Exchange Project Proposal by SORAMITSU


KLAY Funding

  • Proposed: KLAY worth USD 1,056,500


Brief Introduction of the Project

With the global increase in the interest in cryptocurrencies and uses of distributed ledger technology, people have become more interested in decentralized ecosystems. Bitcoin, Ethereum, and blockchain technology have reached a higher level of global awareness. The number of people will only continue to grow as the industry further matures.
In particular: Decentralized exchanges (DEXs) are a key systemic infrastructure for the blockchains hosting them. Through DEX activities, users can help networks and tokens gain significant traction and improve performance through several activities such as exchanges, NFT marketplaces, staking, and more.
A key factor developing the untapped potential of a decentralized exchange is the implementation of open-source software. Currently, the Klaytn chain already has a DEX; however, the code is closed-source, which hinders true decentralization and provides an obstacle to the Klaytn community in terms of swift and steady development of improvements to the exchange in a public and transparent manner.
To foster true decentralization, while providing a transparent and inclusive platform for users and developers alike, in addition to providing a further means to aggregate liquidity to the tokens in the Klaytn ecosystem: SORAMITSU proposes to develop and implement the backbone architecture and design for the first open-source decentralized exchange (DEX) on the Klaytn chain.

Key Deliverables

Each milestone delivery will be accompanied by a detailed Technical Report outlining the goals accomplished as well as the branches completed. Once all goals are completed and an external audit successful; the completed code will be merged to the Klaytn network repo. Each milestone will also consist of a breakdown of the technical tasks that were tested and delivered. A granular breakdown of tasks are itemized and available in the milestone breakdown details table below.

Upon completion of milestone #3: The final technical report will consist of:
● An analysis of the implementations developed and their benefits for the Klaytn ecosystem
● A walkthrough of the functionalities available currently as well as proposed iterations and a preamble to future proposals to increase DEX functionality
● A list of API available for data aggregation from the decentralized exchange

A 3rd party code audit will be conducted before any public release. This will be coordinated and conducted as part of a future KIR process, in close consultation with the Klaytn foundation. It is important to note that any 3rd party code audit report will be publicly available to the community. This report is itself a deliverable, and at most can consist of the following segments to be finalized with the code auditor that will be identified to us by the Klaytn Foundation;
● Definition of used libraries
● Code architecture evaluation
● Security issues
● Critical bugs
● Software performance and bottlenecks
● Code style issues
● Errors that can potentially occur
● Conclusion and recommendations on improvements