Minswap Submits Proposal for a Security Audit

Minswap is a decentralized exchange (DEX) and automated market maker (AMM) on Cardano, which supports multiple pricing functions for a given liquidity pool (LP). 

Minswap won the funding with its “Minswap – Multi-pool DEX” proposal at Catalyst’s FUND5.

The MIN tokens are distributed through the FISO system, (Fair Initial Stake Offering) that the team has designed, in a fair way among the participants of the protocol and the first adopters.

The ISO model distributes the project tokens among the delegates of a pool, instead of the rewards in ADA, whereby the developers collect all the rewards to capitalize their project. The FISO model rewards delegates with Minswap tokens without taking away the benefits of the delegation that corresponds to them, in ADA, for participation in the consensus. They have 25 pools with small branches, with a duration of 20 epochs. MIN tokens earned during FISO begin to be acquired 45 days after FISO ends. 

Participating stake pools must be Single-pool operators, Pool size: 100k-2m ADA at time of snapshotFixed cost: 340 ADAMinimum Pledge: 20kMargin: less than 5% Minimum of 1 block produced.

Thus, by participating, decentralization is increased.

A total of 125 million tokens (2.5% of total supply) will be awarded to Minswap FISO participants. FISO rewards for delegates will consist of 80% MINt tokens and 20% MIN tokens. If you want to know more about this participation methodology, at the end I copy the link.


MIN tokens are rewarded to liquidity providers who delegate their liquidity pool tokens, Yield Farming.

It will have a Launchpool, to support new projects in the Cardano ecosystem with the DEX Initial Offer (IDO) and the Farm Initial Offer (IFO).  

Anyone can list tokens without permission, that is, without the need for authorization in the DEX for their exchange. Anyone will be able to trade tokens without KYC.  

All trading fees go directly to the liquidity providers.holders will be MIN tokenable to vote democratically on protocol changes.  

It will be compatible with Ethereum, with the ERC-20 converter, users will be able to trade Ethereum tokens with much lower fees.  

To develop a good performance in the scalability of the DEX, taking into account the concurrence in the eUTxO model, they have designed Laminar An eUTxO scaling protocol for accounting-style smart contract.


Minswap tokenomics and FISO airdrop start date

Initial Governance

From the beginning, Minswap will have an online user interface and a simple voting procedure for MIPs, (Minswap Improvement Proposal) similar to BIP, EIP or CIP (Cardano Improvement Proposal) .

While the governance of Minswap will be in place from day one, decentralized control of the treasury, and protocol changes through MIP implementations, will be rolled out on a procurement schedule. A summary of this calendar will be published prior to launch. Essentially, the rights and power granted to MIN token holders will steadily increase over time. The rationale for procurement governance is to provide the community with sufficient time to become familiar with the governance system, bring in high-quality protocol delegates, build and test technical governance tools, and allow discussions and communications to develop. .

Before governance is fully effective, a number of measures have been implemented, such as blocking funds in multisig portfolios, audited and public smart contracts that hold treasury funds, a transparent process when key protocol changes are made , and a clear and fair acquisition of rights.

Unexpected Public Sale

Following an initial proposal and discussion in the governance forum, Minswap decided to go ahead with a public sale to capitalize on the project. 

Catalyst’s USD 37,500 grant from FUND5 to build the DEX, of which USD 5,000 per month is distributed over 7 months, is highly appreciated, albeit due to the high cost of security audits and additional resources Of the developers needed, funding was insufficient, the developers said.

To widely distribute the tokens and prevent them from being concentrated in the hands of whales, they have implemented a maximum purchase amount of 4,000 ADA or 160,000 MIN. This equates to 0.64% of the sale tokens and the initial offering in circulation.

The total amount of the public sale is 0.5% of the token offering, which is equal to 25 million MIN tokens. 

The sale was successful, on Sunday October 10, 2021, Tweet: “It has been 1.5 hours since we started the public sale and we are sold out. We have built a scalable reservation system with anti-botting by captcha, IP limiter and wallet limiter. “

The Security Proposal 

The security of Cardano DeFi smart contracts, which will carry billions of dollars, is unknown. The Plutus eUTXO contract design is untested.

An expert third party will rigorously test and verify the security of Minswap smart contracts before they are deployed on the main grid.

FP Complete Company – https://www.fpcomplete.com/ will  conduct a protocol security audit of all Minswap smart contracts. 

FP Complete is a global full-stack technology that specializes in Server-Side Software, DevSecOps, Cloud Deployment, Container Orchestration, and Advanced Programming Languages. 

FP Complete has conducted security audits for Cardano and Hedera Hashgraph, a Haskell specialist who has worked on projects with IOG in the past. His experience with Cardano, as well as DEX security audits on other blockchains, gives a high degree of confidence in his work. 

Minswap has been working hard to ensure that Cardano DeFi users have a safe place to exchange tokens at the mainnet launch. 

As first entrants to the Alonzo White and Purple testnets, they have been continually improving contract designs for months. 

Minswap completed the first successful demonstration of a DEX smart contract written in Plutus more than 3 months ago:

Requested Funds

The proposal requests initial audit funding of an additional USD 62,500 + USD 12,500 budgeted for the Yield Farming Contracts.

An NDA was signed regarding the exact fees and engineering hours involved.

Total: USD 75,000

Definition of success

1 month: launch the prototype in testnet with a constant pool of products.

3 months: have the complete audit and launch on the mainnet.

6 months: launch Yield Farming, the StableSwap pool and have basic DAO governance.

12 months– Become the leading DEX and launch pad for Cardano projects.


Q4 2021: Security Audit, Test-Net, Constant-Product Pool

Q1 2022: Mainnet, Liquidity Mining, Initial DEX Offering (IDO), Initial Farm Offering (IFO)

Q2 2022: Stable Pool

Q3 2022: Decentralized Autonomous Organization ( DAO), Community Governance

Expected launch date: November 25th.

The Team

The founder is Long Nguyen. As explained in the presentation, Minswap is run by a team of experienced engineers who are proficient in Haskell & Plutus. Team members have experience working in large companies such as Amazon Web Services (AWS), Vingroup, Sea Group and contributing to large open source projects such as Jenkins, Kubernetes, Prometheus.

They won the Innovation Award at NEO Hackathon Tokyo, demonstrating knowledge about DeFi and blockchain.

All developers were also part of the Plutus Pioneer Program, and the Alonzo White and Alonzo Purple testnet phases. 


FISO Frequently Asked Questions

The original proposal in Catalyst

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