hash algorithm: blake2b-256
body: Cardano Defi Liquidity Budget - Withdrawal 1
  abstract: ## Executive Summary For the last year, we have engaged the Cardano community to discuss deployment of treasury funds into the DeFi ecosystem to boost liquidity. Under the old constitution, we received broad support (more than 67%) for a budget info action to deploy 50,000,000 ADA into the ecosystem. While we acknowledge a budget info action is not required under the current constitution, we feel encouraged to submit this withdrawal action to setup the legal and on chain components needed to carry out the liquidity deployment. For a detailed overview of what we are aiming to accomplish more broadly, we invite people to read the budget info action (gov_action1u4jrcvlkppjzuv5j9z5ksacwtvv77h6glu0knpcjut8gvjjfu0cqqt3alsy). In this Withdrawal Action, we propose withdrawing 800,000 ADA to setup a legal entity and audit the smart contract that will be built free of charge courtesy of Lucas and Kasey from UTxO Company. The user interface will be contributed by Hinson from Sidan Labs.
  motivation: ## Terms of Withdrawal ### Purpose of Withdrawal This withdrawal is intended solely for establishing the legal and technical infrastructure required to implement the Stablecoin DeFi Liquidity Budget approved by the Cardano Community. Specifically, funds will be used to: 1. Establish a Cayman Islands Foundation Company as the legal vehicle for fund management 2. Audit the administrating smart contract system (development is contributed at no cost by UTxO Company and Sidan Labs) 3. Deploy Amaru contract infrastructure for secure multisig fund management during this withdrawal period ### Period for Delivery All activities funded by this withdrawal shall be completed within 6 months from the date funds are received by the Amaru contract. If any activity cannot be completed within that period, any outstanding funds allocated to that activity will be returned to the Cardano Treasury. ### Costs and Expenses Maximum allocated costs for this withdrawal: | Category | Maximum Allocation | Provider | |----------|--------------------|----------| | Legal Structure | 664,000 ADA max | Walkers (Cayman) LLP / Walkers Corporate Limited | | Smart Contract Audit | 111,000 ADA | Invariant0 LLC | | Amaru Contract Setup | 25,000 ADA | Sundae Labs | | Smart Contract Development | 0 ADA | UTxO Company & Sidan Labs (contributed) | | **Total** | **800,000 ADA** | | Legal structure costs are denominated in USD. The Committee will withdraw only the ADA required to cover the USD value of invoices at the time of payment. Any ADA remaining after all legal obligations are settled will be returned to the Cardano Treasury. Audit and Amaru setup costs are fixed in ADA as stated. ### Circumstances for Refund to Treasury Funds shall be refunded to the Cardano Treasury under the following circumstances: 1. **Service provider non-performance** — if any service provider fails to deliver agreed milestones, contracts are terminated for cause, or deliverables are rejected; any unspent funds allocated to that …
  rationale: ## 4\. Amaru Contract Setup ### 4.1 Service Provider **Sundae Labs** **Website:** [https://sundae.fi](https://sundae.fi) **Supporting Role:** - Additional technical support and consultation - Cardano smart contract expertise - Community integration support ### 4.2 Purpose An Amaru contract will be established to receive the 800,000 ADA from this withdrawal and manage disbursements to service providers. This provides: - Secure multi-signature control by the 9-person Interim Committee - Transparent on-chain tracking of all payments - Protection against single point of failure - Constitutional compliance with fund management requirements ### 4.3 Cost & Timeline | Service | Provider | Cost | Timeline | | :---- | :---- | :---- | :---- | | Amaru contract setup & support | Sundae Labs | 25,000 ADA | 1-2 weeks | --- ## Prior Treasury Receipt Disclosure In accordance with Article I, Section 7(2) of the Cardano Constitution, the prospective recipient of this withdrawal is the Stablecoin DeFi Liquidity Interim Committee, acting through an Amaru multisig contract requiring 5-of-9 signatures. The Stablecoin DeFi Liquidity Interim Committee has not received ada from the Cardano Treasury within the last 24 months. --- ## 5\. Constitutional Compliance Summary This withdrawal action complies with all applicable sections of the Cardano Constitution (ratified 2025). ### Article I, Section 6 \- Governance Action Standards This action follows the standardized format required by Article I, Section 6: - **Title, abstract, justification, and supporting materials** — provided in this document - **URL and document hash** — to be added prior to on-chain submission - **On-chain content identical to final off-chain version** — this document is the off-chain specification; the on-chain metadata will match exactly All smart contract code will be published to a public GitHub repository, enabling full community verification of deliverables. ### Article I, Section 7 \- "Treasury Withdrawals" Action …
  references: Other
    label: Conflict of Interest Policy
    uri: https://raw.githubusercontent.com/theeldermillenial/2025-liquidity-budget/7e657eaa1c39a22a399393b8d8524277bd4b2a1a/withdrawal-1/conflict-of-interest.md
  references: Other
    label: Impact and Selection Criteria
    uri: https://raw.githubusercontent.com/theeldermillenial/2025-liquidity-budget/7e657eaa1c39a22a399393b8d8524277bd4b2a1a/withdrawal-1/impact-and-criteria.md
  references: Other
    label: Monthly Value Calcuation
    uri: https://raw.githubusercontent.com/theeldermillenial/2025-liquidity-budget/7e657eaa1c39a22a399393b8d8524277bd4b2a1a/withdrawal-1/value-calculations.md
  references: Other
    label: DeFi Asset and Risk Management Principles
    uri: https://raw.githubusercontent.com/theeldermillenial/2025-liquidity-budget/7e657eaa1c39a22a399393b8d8524277bd4b2a1a/withdrawal-1/asset-risk-management-principles.md