Danogo
a Decentralized Exchange on CARDANO
Where users can list & trade Bonds permissionlessly without relying on any centralised party.
Currently, Danogo only supports Optim Bond Token issued by https://app.optim.finance/ but will support new Bonds as the Cardano Defi market evolves.
Why should I try out Danogo?
Currently Optim Bond Holders must wait till maturity to receive ADA back, so Danogo will help improve liquidity for Bond Holders.
If you have Ada but do not want to be locked up for 1 full year, you can buy Optim Bond via Danogo and choose the duration suitable instead
Why another DeX?
Cardano already has a few DeX, but none of them is suitable for Bonds because the price of Bonds changes EVERY DAY as the Bonds accrue interest when they get nearer to the maturity date. Hence Danogo calculates dynamic Bond prices based on Yield & time to maturity rather than fixed spot prices like other DeX. Thus users will trade Bonds based on Yield & Maturity rather than spot price.
I have Optim Bond Token, how do I sell?
Connect your wallet
Click on your profile icon to view the list of your Bond holdings
Click List next to the Bond you want to sell
- Set the interest rate (yield) you want to sell in percentage (ex: 5.33%)
- Set amount you want to sell
Note: If you experience it on the testnet, here is the link to Optim Bond, and this is the ADA faucet link in the preview.
Danogo will automatically calculate Bond price daily, so sellers & buyers do not have to keep updating their listings' prices. Danogo will prioritize the display of Bond sales with the highest offered interest rate first, so sellers should try to offer the HIGHEST interest rate they are willing to sell their Bonds.
When will I receive the Ada?
When a buyer buys your Bond, ADA will be transferred to your wallet immediately.
Can I change the listing order?
You can also update, cancel your Bond listing anytime!
I want to buy Optim Bond with short duration!
You can see available Bond listings and click on any available listing to buy. Simply enter the amount of Bond Tokens you want to buy, and we will show you the current price in Ada, so you don't have to worry about all the interest accrued calculation.
If the Bond duration you want is not currently listed, you can create a new Bid
- Choose your desired duration range
- Enter you desired Yield rate
- Enter the amount of Bond Tokens you want to buy
- We will calculate the Ada deposit amount for you
- Danogo will prioritize bids with the LOWEST interest rate for sellers to see. As a bidder, you should enter the lowest rate you are willing to buy the Bond at.
- When a seller agrees to sell you the Bond at your requested Yield, the Bond will be transferred to your wallet automatically, and any leftover deposit if there is any.
How is Bond price calculated?
Bond price is based on Yield and time to maturity. (note this is the agreed Transacting Yield between buyer & seller, NOT the actual Bond Yield which was fixed at the point of Bond Issuance)
Price = ADA received maturity/(1+ Transacting Yield/365 * days to Maturity)
Where
ADA received maturity = 100 (1 + Optim Bond Yield 5 72 / 365) this is set by Optim!
Each Optim Bond nominal value is 100 Ada
Note that we charge buyer & seller 1% fee of the INTEREST amount, not the full nominal amount! If you are transacting 10 Optim Bond (1000 Ada nominal amount) with yield 5%, then our fee is 1% * (10 * 100 * 5%) = 0.5 ADA
How does Danogo protect my privacy?
We do not collect any information from user wallet, all transaction calculations are done on your computer then submit on Chain. We may collect anonymous ux data to log user error messages to help us improve Danogo user experience.
Is Danogo Opensource?
YES, we believe all Cardano smart contract should be open source (Github Link). By design, Cardano dapp make the smart contract code simple, and lots of heavy lifting are done by offchain code, so we believe open sourcing smart contract onchain should be default practise for all Cardano dapp. Teams can still keep offchain source code private which should be enough to maintain team competitive advantage while help contributing to Cardano ecosystem.
Because our smart contracts are opensource, we decide to not engage external auditor to audit. We believe in building a vibrant ecosystem through opensource and community will help identify bugs. We appreciate any code review, contribution & bug reports to make Danogo smart contract more secured!
Plan
May 2023: Launch the Dex on the Preview Cardano (Testnet) with key features including Bond listing, Bond purchase, and tracking Bonds listings in the user's wallet.
Jun 2023: Release the Dex on the Cardano Mainnet.
Jul 2023: Release new features, including the ability to create bids and match sell orders for Bonds with existing bids on the DEX.
Sep 2023: Release new features, auto Market Making
The exchange will undergo continuous development to introduce new features that meet the evolving needs of the market.