Shadow is a decentralized, smart contract-powered copy trading protocol built on Cardano. It enables users to follow and automatically mirror the on-chain trades of high-performing wallets in real time. The platform is fully non-custodial and opt-in, with a built-in commission model that rewards traders based on their performance.

The protocol consists of:

Secure Aiken-based smart contracts to mirror trades with slippage controls

A dynamic user interface that shows wallet performance, trade history, and follower stats

One-click copy integration with Cardano wallets like Lace, Eternl, and Nami

A backend indexer and analytics layer to provide real-time trade insights and rankings

A commission structure where 1% of each mirrored trade is split between Shadow and the copied trader

Shadow fills a critical infrastructure gap on Cardano by allowing new and passive users to engage with DeFi strategies, while giving experienced traders a new revenue stream.

Key Performance Indicators (KPIs) To support transparency and track progress, the following KPIs outline expected technical, user, and ecosystem milestones across the four development phases of the Shadow protocol. These targets are realistic for a small team and early-stage infrastructure product, and serve as benchmarks—not rigid requirements—for success.

Phase 1 – Core Development (Months 1–2) Completion of core Aiken smart contracts with a minimum of 70% test coverage.

Backend deployed with stable performance (90% uptime) during internal testing.

Indexer/API services track at least 50 simulated trades with accurate analytics.

Internal QA review and documentation completed for all major modules.

Phase 2 – Public Testnet & Influencer Onboarding (Month 3) 5–10 Cardano traders onboarded and active during the testnet.

At least 75 unique testnet users simulate copy trades and explore the dashboard.

Completion of 2 structured feedback loops (e.g., Discord polls or direct surveys).

Resolution of critical issues and usability blockers reported by the community.

Phase 3 – Mainnet Launch (Months 4–5) At least 250 mirrored trades successfully executed on mainnet.

150+ unique users use the mainnet platform in the first 30 days.

Commission payout logic confirmed functional in ≥90% of mirrored trades.

Smart contract failure rate remains below 2%.

Public release of performance dashboard tracking trader/follower metrics.

Phase 4 – Ecosystem Integration & Community Growth (Month 6) Integration with at least 1 major Cardano wallet (e.g., Eternl or Nami).

Integration with at least 1 Cardano DEX for mainnet compatibility.

Engagement from at least 1 third-party ecosystem app (e.g., aggregator or tooling platform).

Publication of 3 educational resources or tutorials to support onboarding.

Reach a minimum of 200 monthly active users by the end of Month 6.

Cardano currently lacks the infrastructure to support social, influencer-led, and automated trading experiences—tools that are increasingly standard in other blockchain ecosystems and traditional platforms. The absence of a permissionless, non-custodial copy trading solution makes it difficult for new users to enter DeFi, limits liquidity activity across DEXs, and provides no scalable way for high-performing traders to monetize their skills.

Most users are overwhelmed by the complexity of DeFi protocols and unsure how to make informed trading decisions. Meanwhile, top traders on Cardano lack the tools to build audiences or earn revenue through their on-chain expertise. This creates a two-sided inefficiency: potential users are under-engaged, and capable traders are under-incentivized.

As a result, Cardano experiences lower trading volume, fewer active user sessions, and slower adoption among non-technical audiences.

Shadow solves this by introducing a copy trading protocol where users can automatically mirror the trades of successful wallets in real time. All trades are non-custodial and opt-in, with a small commission fee shared between the protocol and the trader being copied.

By aligning the incentives of expert traders, passive investors, and protocol developers, Shadow establishes a new form of Cardano-native trading—social, scalable, and profitable for all participants.

Key benefits to the Cardano community include:

Onboarding new users with simple copy-based trading experiences.

Driving volume and liquidity to native DEXs and tokens.

Creating revenue opportunities for traders and content creators.

Boosting long-term engagement through social network effects.

If successful, Shadow will become the social trading layer of Cardano, encouraging exploration, increasing TVL, and bringing trading into the hands of everyone. The result is a more active, inclusive, and profitable DeFi ecosystem for the Cardano community.

What tangible milestones or outcomes are to be delivered and what will the community ultimately receive? This proposal will deliver the first permissionless, smart contract-powered copy trading protocol on Cardano. Community members will gain access to a fully operational platform where they can either copy top-performing traders or monetize their own trading strategies.

Tangible Milestones: Phase 1: Core Development (Month 1–2)

Finalization of smart contracts (Aiken-based)

Backend infrastructure setup (indexer, database, APIs)

Private devnet deployment and internal QA

Phase 2: Public Testnet + Influencer Onboarding (Month 3)

Launch of testnet dashboard for public use

Recruit 10–20 experienced Cardano traders for early access

Onboard beta users and collect UI/UX feedback

Phase 3: Mainnet Launch (Month 4–5)

Launch of copy trading platform on Cardano mainnet

Real-time trade mirroring with 1% commission model active

Leaderboard, trader analytics, and follower management features

Phase 4: Ecosystem Integration & Community Scaling (Month 6)

-Wallet integrations with Eternl, Nami, Lace -Partnerships with at least 2 major Cardano DEXs(Currently have two, goal is to integrate copying on all DEXs) -Partnerships with at least 2 major apps(example: Bodega or Dexhunter) -Launch of educational resources and marketing campaign

Community Outcome: An open, trusted copy trading layer for Cardano—free to use, non-custodial, and designed for both beginners and expert traders to grow their on-chain activity and learning.

Backend Infrastructure (Database + Mempool Monitoring) $25,000 / ₳41,667 Development and deployment of a dedicated backend system to replace Blockfrost, including mempool trade tracking.

Audit & Security Review $35,000 / ₳58,333 Comprehensive third-party audit of smart contracts, including vulnerability scanning and post-fix verification.

Bug Bounty Program $10,000 / ₳16,667 Community-driven incentive program to identify and report security or logic issues post-launch.

Hosting & DevOps $15,000 / ₳25,000 Cloud infrastructure, uptime monitoring, and deployment pipelines to maintain protocol reliability.

Leaderboards & Social Features (e.g. trader stats, follower tools) $20,000 / ₳33,333 Implementation of trader performance dashboards, follower management tools, and social engagement features.

Community Outreach & Partnership Support $15,000 / ₳25,000 Integration efforts with dapps to expand Shadow capabilities, project collaborations, and support materials for user onboarding.

Total: $120,000 / ₳200,000

Team Size: 6 members

2 Smart Contract Engineers (Aiken)

2 Full-Stack Developers (React/TypeScript + Backend/APIs)

1 Growth & Marketing Lead

1 Operations & Partnership Coordinator

Duration: 6 months total

Estimated Effort: ~480 full-time equivalent (FTE) days

Time Allocation by Phase:

Phase 1: 60 days

Phase 2: 30 days

Phase 3: 60 days

Phase 4: 30 days

The Shadow team has a assembly of strong technical developers shipping working protocols on Cardano.

The tech lead is a former Lending Pond developer (2022–2023): The first lending protocol on Cardano, allowing peer-to-peer lending against NFTs. The platform gained significant traction and onboarded thousands of users.

The current version of Shadow is already deployed on testnet at https://beta.shadowtrade.pro. This working demo shows basic trade mirroring, influencer registration, and partial analytics infrastructure. This is a demonstration of the technical team's ability to convey community trust and experience of building a product.

DeFi Product Development: Team members have experience in designing on-chain lending, automated trading, and contract security systems. Skills include Aiken, Plutus, Haskell, TypeScript, and Cardano wallet APIs.

Community Engagement: The team has scaled Twitter/Discord communities to over 1000 followers, onboarded influencers, and coordinated with Cardano ecosystem partners including wallet developers and DEX teams.

This mix of engineering, product, and community experience uniquely qualifies the team to deliver and scale Shadow effectively within the Cardano ecosystem.

User Support & Education:

Ongoing onboarding of new users and traders

Educational content and tutorials to help users safely engage with copy trading

Discord support channels

Partnership Development:

Integrations with additional Cardano tools and wallets

Collaboration with other DeFi protocols to expand utility

Long-term alignment with ecosystem builders to ensure protocol resilience

Shadow has already begun to generate early interest within the Cardano community through our testnet preview and social discussions. Our prototype is live at https://beta.shadowtrade.pro, and we’ve received direct feedback from users on Discord, X (Twitter), many of whom expressed interest in becoming either traders or copy users.

Evidence of early traction and interest includes:

Over 1000 Discord members and X followers.

Direct contacts with popular dapps who are open to potential integration.

Shadow was shared and discussed in community Discord servers where we’ve received positive feedback and UI/UX suggestions.

Influencer outreach is already underway with several Cardano traders expressing willingness to onboard once the main net launch begins.

Twitter engagement has shown organic interest in our smart contract-powered copy trading concept. Tweet: https://x.com/ShadowLabsADA/status/1902881427454115983

We believe the momentum will only grow as we continue developing, and this Intersect proposal is a critical part of turning that momentum into ecosystem-wide adoption.

Wallet Integration: Support for Cardano wallets such as Eternl, Nami, and Lace is required for seamless onboarding and transaction execution.

DEX Compatibility: Mirrored trades depend on reliable interaction with Cardano DEXs like Minswap or SundaeSwap.

Backend Infrastructure: Hosting, indexers, and APIs are needed for real-time wallet tracking, analytics, and uptime.

Community Engagement: A successful influencer onboarding strategy is critical to grow the base of traders and copy users.

Advisory Support: Continued collaboration with experienced builders and protocol engineers for reviews, audits, and scaling considerations.