This document provides a reviewer-oriented package for Milestone 1,2 : Off-chain integration enabling Long/Short positions via Minswap + Liqwid, including clearly mapped acceptance criteria, evidence artifacts, and how a reviewer can verify end-to-end without local setup.
Repository (open source)
Minswap Interface (Trading tMIN - ADA Page)
Liqwid Interface
Demo Interface
Off-chain integration enabling long position operations through Minswap and the chosen lending protocol on Cardano (either Liqwid or Lenfi).
- User can open-close long position (Isolated Margin Long $MIN) through Minswap Dex V2 + Liqwid V2 via a simple POC Interface.
- Multi-steps Transactions flow were executed seamlessly via password-less Nitro Wallet, reducing user signing many transactions while preserving non-custodial control on-device, also save user time to wait many transactions confirmed and adhoc tasks on interface.
- Minswap x Liqwid Integration SDK is fully functional.
Off-chain integration successfully enables asset supply, borrowing, and purchasing for long positions.
- The off-chain integration between Minswap V2 and Liqwid V2 has been completed and is fully functional, allowing users to open leveraged long positions in isolated margin mode – exactly the same experience as margin trading on centralized exchanges (CEX).
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With Nitro Wallet, User doesn't need to sign any transaction to open-close Position.
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With Liqwid Integration SDK, User doesn't need go to Liqwid Page then supply-borrow-repay-withdraw.
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User doesn't care about any states, just focus on trading.
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For example if User (Alice) do it by herself: 0. Alice need to learn about how Liqwid work and how to leverage trading by borrowing tokens.
- Alice create BUY order ADA -> MIN on Minswap.
- Alice keep waiting and refresh page until Order was batched.
- Alice go to Liqwid page and try to supply her $MIN tokens.
- Alice keep waiting and refresh page util she received $qMIN tokens.
- Alice deposit $qMIN as collaterals and borrow some $ADA tokens (self calculated how many ADA need to be borrowed)
- Alice keep waiting and refresh page until her borrow position has approved and she received borrowed ADA.
- Alice take $ADA to BUY more $MIN on Minswap. ...... a few moments later
- Alice want to close position, then she start sell all her $MIN
- Alice keep waiting and refresh page util Order was batched.
- Alice take $ADA and go to Liqwid Page to repay her loan.
- Alice keep waiting and refresh page util her loan fully repaid and closed.
- Alice take $qMIN and go to Liqwid Page to withdraw and get back her $MIN.
- Alice keep waiting and refresh page util she received $MIN tokens back.
- Alice go to Minswap Page, create SELL order to sell her $MIN and capture her profit.
- Alice keep waiting and refresh page util Order was batched.
-> Lesson for Alice: Open Minswap Lending Market, go try it yourself, open a 1.5x $MIN long with 400 ADA and tell me it’s not seamless. I dare you 😎
- Partially achieved in current milestone, with full optimization scheduled for the next milestone after Liqwid releases the required APIs.
- Explanation & Evidence:
- The Liqwid V2 smart contracts currently have the following technical limitations that directly prevent full optimization at the smart-contract interaction layer:
- Building Transactions in Liqwid is centralize (required Liqwid's Admin Signed) and only support via Liqwid APIs.
- Supplying assets on Liqwid only supports PubKey addresses, not Script addresses (Native or Plutus).
- → This forces the frontend/dApp connector (in this case Minswap) to manually construct the supply transaction instead of using Liqwid's high-level SDK, which significantly increases complexity and prevents batching/optimization at the protocol level.
- While Borrow, Repay, and Liquidation operations technically allow script-to-script interaction, Liqwid's current BuildTx API does not expose the necessary endpoints to build these transactions when the user address is a script (Minswap Order Script Address). → As a result, I cannot yet batch multiple actions (e.g., open leveraged position → supply collateral → borrow → execute swap on Minswap in a single transaction) in the most efficient way possible.
- I have been continuous contact with the Liqwid team. They have confirmed that they've been updating their APIs in order to support script-to-script interaction.
- Once their API is live, I will immediately:
- Refactor code to educe the number of required transactions. → As a result, It will minimize time processing and achieve the lowest possible fees for users
- Minswap Order on Lending Market will apply Minswap Instant Batching Mode (will implement at Milestone 3).
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This Milestone 1 POC is built purely to prove the core concept works end-to-end and to deliver the "How Long Position work?". It is not Ready-Production for users.
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What it does NOT include yet (all planned for Milestone 3 – Frontend Interface):
- Polished production UI/UX (current interface is minimal & intentional)
- Some numbers/values are hard-coded or placeholder (will be fixed with final design)
- Liquidation Flow (waiting for Liqwid to ship on-chain price oracles on Testnet Preview)
- Advanced use-cases, edge cases, and full error handling
- Liqwid currently does not support Oracle to update Token Price on https://dev.liqwid.finance => I omit Liquidation flow on Milestone 1, waiting Liqwid team to support and support it at Milestone 3.
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Milestone 1 = "It works, it's live, real users are already trading with leverage."
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Milestone 3 = "Pixel-perfect, bulletproof, ready for millions."Everything else will be shipped in the next phase. Thanks for understanding!
Off-chain integration enabling short position operations through Minswap and the chosen lending protocol integration on Cardano (if Liqwid is not possible, we use LenFi).
- User can open-close short position (Isolated Margin Short $MIN) through Minswap Dex V2 + Liqwid V2 via a simple POC Interface.
- Multi-steps Transactions flow were executed seamlessly via password-less Nitro Wallet, reducing user signing many transactions while preserving non-custodial control on-device, also save user time to wait many transactions confirmed and adhoc tasks on interface.
- Minswap x Liqwid Integration SDK is fully functional.
- The POC includes
interest calculationsandliquidation scenarios.
Off-chain integration successfully facilitate asset supply, borrowing, selling, and repurchasing for short positions.
- With ADA only, user can short $tMIN with leverage margin 0.5x. For example, Alice has 1000 ADA, she can short 20k %tMIN (~= 500 ADA) and expecting $tMIN price go down and capture her profit.
Integration handles the complexities of short positions, including interest calculations and liquidation scenarios.
- Interest Calculations:
- Add some new functions for Liqwid Provider SDK to query
Supply, Borrow Interest Data(e.g. Supply APY, Borrow APY, Supply Interest, Borrow Interest, ...) - Support calculate Estimate PnL
- Add some new functions for Liqwid Provider SDK to query
- Liquidation Scenarios:
- In Testnet-Preview, Liqwid has not supported price Oracle yet. Therefore, the POC Liquidation Scenario is auto-trigger when SHORT Token price go up 10%. For example, if you open SHORT tMIN at price 0.22 ADA/MIN, the Liquidation will be triggered when price reach 0.242 ADA/MIN.
- To test the liquidation scenario, I manipulated the ADA-MIN price to increase by 10% or more, successfully triggering the liquidation process. This simulation helps verify that the protection mechanism works correctly and prevents real liquidations for users on Liqwid Platform.
- Work similar to Milestone 1.
- Non-custodial: private key persists on the user’s device.
- Security: Never send any data to Backend.
- seamless: Auto-sign within user-granted scope: enables multi-step flows (e.g., long/short) without repeated password prompts.
- Privacy: No on-chain linkage to the user’s primary wallet account beyond what’s inherent to transactions.
- User connect wallet
- User create Nitro Wallet
- User Deposit fund to Nitro Wallet to start trading Long/Short
- Setup your trading (example: LONG $MIN token with total buy in 300 ADA and leverage margin is 1.5x)
- Place Long Position.
- Nitro Wallet auto handle opening Long position.
- User can close Long Position and capture their profit.
- User connect wallet
- User create Nitro Wallet
- User Deposit fund to Nitro Wallet to start trading Long/Short
- Setup your trading (example: SHORT $MIN token with total supply 1000 ADA and leverage margin is 0.5x)
- Place Short Position.
- Nitro Wallet auto handle opening Short position.
- User can close Short Position and capture their profit.
- When you want to clear all Position and test again, please click on
Clear History & ResetButton.
5. Buying Asset TxReference
6. Supplying Token TxReference
7. Borrow Token TxReference
8. Buy More Long Asset TxReference
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User Click Button Close Position
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11. Selling Token TxReference
12. Repay Loan TxReference
13. Withdraw Collateral TxReference
14. Sell All Long Asset TxReference
- When you want to clear all Position and test again, please click on
Clear History & ResetButton.
5. Supplying ADA TxReference
6. Borrowing $tMIN TxReference
7. Short $tMIN TxReference
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User Click Button Close Position
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11. Buy Back Token TxReference
12. Repay Loan TxReference
13. Withdraw Collateral TxReference
- In Testnet-Preview, Liqwid has not supported price Oracle yet. Therefore, the POC Liquidation Scenario is auto-trigger when SHORT Token price go up 10%. For example, if you open SHORT tMIN at price 0.22 ADA/MIN, the Liquidation will be triggered when price reach 0.242 ADA/MIN.
- So for testing, after
position is opening, I manipulateADA-MINprice go up that trigger Liquidation Process: 
