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Introduction

Pairfy is a native Cardano e-commerce dApp funded in the Catalyst F11 round. Catalyst

Imagine a platform like Amazon or Shopify but governed and operated by its own buyers and sellers as DAO members, who can vote on key platform decisions and access a shared repository of vendor profiles, product templates, marketing assets, and landing page designs.

On Pairfy, products can be purchased using a Cardano or Midnight wallet. The trading process between the seller and the buyer is handled by Plutus V3 contracts. Using a Cardano smart-contract allows to use ADA, stablecoin and native asset as a form of payment for the products. In addition, the implementation of other innovative and deterministic trading logics. It is also compatible with the midnight network.

Pairfy also leverages the collective intelligence of its DAO members to conduct market and product research that benefits the Cardano community. These features empower any community member to become a seller and launch their own store.

Pairfy's Website

Differential factors

  • Community-governed with chain vote – DAO constitutional model.
  • The discount liquidity pool to reduce the price of products.
  • Use of Cardano Network – Midnight Network 🔥.
  • Free shipping is always included.
  • ADA Guarantee as purchase protection.
  • Each trade is managed by an isolated smart-contract (Important for high horizontal scalability).
  • Any member of the community can be a seller (DAO member).
  • Community repository of products, suppliers, marketing, landing pages templates.
  • Seller incentive program.
  • Integration of AI models, MCP servers.
  • Product search by AI vectorized semantics.
  • Use of collective intelligence that enables strategic cooperation and mutual benefit for ecosystem members (market investigation, supplier analysis, development, innovation, etc).
  • Open-source development (Apache 2.0).

Open source alternative to

  • Amazon
  • Shopify
  • Dropshipping companies

Competitive factors

The most competitive factor is the discount liquidity pool which is fueled by trade fees and ADA generated through staking. This helps leverage product prices, reducing them by 10% to 25% from traditional market prices.

Example

TIP

Although the price of ADA / USD may fluctuate depending on when this is read the long-term trend is considered bullish. For the purposes of this example the reference value of 1 ADA = 1 USD will be used.

If the discount liquidity pool reaches 1.000.000 ADA this liquidity can be divided by 100 ADA as a form of discount per order.

md
discount_liquidity = 1_000_000 ADA

discount_per_order = 100 ADA

discount_liquidity / discount_per_order = 10_000 discounts

Beneficiaries: 10.000 users

This means that 10,000 buy orders will have a discount of 100 ADA. Which for products over $200 represents a pretty substantial discount. A very generous discount is a good incentive to encourage traditional market buyers to migrate to the Cardano ecosystem.

Here's another example with an iPhone:

md
discount_liquidity = 100_000 ADA

discount_per_order = 200 ADA

discount_liquidity / discount_per_order = 2_500 discounts (2.500 Beneficiaries)

-

Iphone 17 original price = 1000 USD

Iphone 17 with discount applied = 800 USD

Technical aspects of the discount pool / staking pool.

The discount pool grows with the ADA fees contributed by sellers for each sale and with the ADA rewards generated by the staking pool. All ADA is sent to the operating wallet which is delegated to the pool itself and allows for generating profits through staking.

In the distribution stage ( airdrop ) the ADA will be transferred to the discount pool, a smart contract with an endpoint that mints the tokens needed to distribute the liquidity for the discounts. Each token represents an individual discount (1 token = 1 beneficiary). Tokens are airdropped to the wallets of $PAIRFY holders during the liquidity distribution stage airdrop.

In the user interface during a purchase process. The buyer sees the option to redeem the token as a discount in the right panel. If the user agrees to do so, they only need to pay the discounted price.

When the buyer makes the purchase, the transaction sends the redeemable token to the individual contract that handles the trade logic. When the commerce ends, the contract that handles the trade logic sends the redeemable token to the seller who can redeem it for ADA. The smart contract that manages the discount liquidity uses a state machine and a threadtoken to perform deterministic redemption.

Annual staking pool earnings

The staking pool generates profits that are used for the discount liquidity pool.

Delegation (ADA)Total RewardsOperator MarginOperator Earnings (ADA/year)
10,000,000400,0005%44,759
10,000,000400,00010%66,697
10,000,000400,00025%122,885
10,000,000 ✅400,00050%197,590
20,000,000800,0005%63,759
20,000,000800,00010%102,697
20,000,000800,00025%207,885
20,000,000800,00050%387,590
30,000,0001,200,0005%83,579
30,000,0001,200,00010%138,697
30,000,0001,200,00025%292,885
30,000,0001,200,00050%577,590
40,000,0001,600,0005%103,379
40,000,0001,600,00010%174,697
40,000,0001,600,00025%377,885
40,000,0001,600,00050%767,590
50,000,0002,000,0005%123,179
50,000,0002,000,00010%210,697
50,000,0002,000,00025%462,885
50,000,0002,000,00050%957,590

With the goal of staking 10,000,000 ADA consistently for a year, stakers would earn rewards in ADA and $PAIRFY for staking. This would then generate at least 200,000 ADA annually and 16,666 ADA monthly returned to all holders in the form of a discount. This is a decent achievement.

In addition, the amount generated by the fee for each sale must be added to the discount liqudity pool. Averaging the fee charged by large private e-commerce companies, 10% for each sale of any type of product is a realistic and understandable percentage. This means that for every $100, $10 is sent to discount liquidity pool.

Token Rewards

$PAIRFY utility/governance tokens is distributed as a reward for delegating ADA to staking pools.

Apache License 2.0 Summary

CategoryDescription
✅ Allowed- Use for personal and commercial purposes
- Modify the source code
- Redistribute original or modified versions
- Re-license your modifications
- Use in closed-source/proprietary software
- Keep changes private (if not redistributed)
- Includes a patent grant for added legal protection
📌 Obligations- Keep original copyright notices
- Include the full Apache 2.0 license
- Indicate if you made changes (e.g., in file headers, README, or NOTICE)
- Include NOTICE file if present in the original
- Do not imply your version is the original
- Do not use trademarks without permission
❌ Restrictions- Do not remove or alter license/copyright notices
- Do not claim authorship of the original
- Do not use logos or names as if they were yours
- No liability or warranty: software is provided "as is"
🎯 Ideal For- Open source with commercial intent
- Integrating into proprietary products
- Legal clarity and patent protection
- Attribution without copyleft requirements