Last updated 5 months ago
We are solving the problem of instability and reliance on centralized stablecoins in DeFi which hinders fairer access to liquidity, trading, and payments across the ecosystem.
To safeguard financial confidentiality and autonomy while ensuring stability, and transparency through verified smart contracts by enabling users to mint a USD-pegged coin backed by crypto assets.
This is the total amount allocated to Decentralized Stablecoin Protocol On Midnight.
Please provide your proposal title
Decentralized Stablecoin Protocol On Midnight
Enter the amount of funding you are requesting in ADA
50000
Please specify how many months you expect your project to last
5
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
We are solving the problem of instability and reliance on centralized stablecoins in DeFi which hinders fairer access to liquidity, trading, and payments across the ecosystem.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
Yes
Describe any dependencies or write 'No dependencies'
Price Oracle System
Will your project's outputs be fully open source?
Yes
License and Additional Information
Dual Licensing/source-Available licenses
We will host the open-source portion on platforms like GitHub or GitLab, while marking closed or source-available parts separately, documenting terms, and maintaining transparency in the README.
Please choose the most relevant theme and tag related to the outcomes of your proposal
Stablecoin
Mention your open source license and describe your open source license rationale.
Dual Licensing/ Source-Available Licenses
We'll offer the codebase under two licenses i.e one open source and another proprietary or parts of the code are released under a source available but not fully open-sourced until properly audited and battle-tested due to the newness of the blockchain in view.
How do you make sure your source code is accessible to the public from project start, and people are informed?
We will host the open-source portion on platforms like GitHub or GitLab with a clear OSI-approved license, while marking closed or source-available parts separately, documenting terms, and maintaining transparency in the README.
How will you provide high quality documentation?
Excellent documentation starts with writing it as if you’re guiding a teammate who just joined the project. Keep explanations clear and simple. Organize content logically with sections for setup, usage, examples, FAQs, etc so users don’t have to guess where to look. Always include practical code snippets. Update the docs alongside your code changes, outdated documentation is worse than none at all. Encourage feedback from users and contributors, and treat their input as part of your improvement cycle. Finally, make it easy to navigate with a table of contents, search, and consistent formatting
Please describe your proposed solution and how it addresses the problem
The solution addreses the problem of stability in DeFi, confidentiality, and liquidity retention by allowing users to provide liquidity as collateral and based on the value of the collateral, users will be able to mint the protocol's native stablecoin. This minted stablecoin will be integrated with other DeFi protocols within the ecosystem for more composability and capital efficiency. All this will be possible without exposing users financial details/information, thereby preserving privacy in DeFi.
Please define the positive impact your project will have on the wider Cardano community
Building this projectt on Midnight extends the value of the broader Cardano ecosystem by addressing one of DeFi’s biggest gaps: privacy. Cardano itself is known for its security and scalability, but it operates on a transparent ledger where financial details can be traced. By introducing a privacy-focused stablecoin protocol on Midnight, you complement Cardano’s strengths with financial confidentiality, which many users and institutions see as essential for wider adoption. The stablecoin also deepens liquidity across the ecosystem, since it can circulate between Midnight and Cardano through interoperability. This creates a stronger bridge between open, transparent DeFi on Cardano and private, confidential DeFi on Midnight. Ultimately, it enhances Cardano’s competitiveness by offering both compliance-ready transparency where needed and user-controlled privacy where required, making the ecosystem more attractive to builders, liquidity providers, and enterprise use cases.
What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?
Our team brings together fullstack developers, smart contract engineers, dApp architects, and seasoned project managers. We already have a minimum testnet live with core features like collateral deposits, stablecoin minting, repayment, and staking (Testnet link live on X: https://x.com/stateraprotocol ) Alongside this, we are actively building with multiple teams and projects on both Cardano and Midnight, showing not just technical expertise but also consistent delivery. This track record highlights our ability to execute complex ideas and proves the proposed project is both realistic and achievable.
Milestone Title
Smart contract modules development
Milestone Outputs
This milestone will provide functional smart contract modules for the different actions within the protocol. objectively, we'll have the following modules:
Acceptance Criteria
The milestone will provide as an acceptance parameter, a smart contract API that can be used to create a interactive dApp instance that can be used to test on the CLI or integrated with the frontend.
Evidence of Completion
A working CLI dApp instance that interacts seamlessly and efficiently with the smart contracts.
A video demonstration of the CLI testing of all smart contract interctions on the CLI
Delivery Month
3
Cost
25000
Progress
50 %
Milestone Title
UI Integration (frontend) and wallet connect.
Milestone Outputs
A functional user interface pluged in with the smart contracts, fully integrated with Lace wallet that allows collateral deposit, sUSD minting, repayment, staking, withdrawal, and loan vault liquidation.
Acceptance Criteria
UI should connect seamlessly with smart contracts/APIs, ensure accurate data display, allow smooth user interactions (tx signing, balances, actions), handle errors gracefully, and be responsive across devices.
Evidence of Completion
User Interface integration is a fully functional interface where users can seamlessly interact with the underlying smart contracts, with tested flows (e.g., connect wallet, transact, fetch data) confirmed via testnet deployment.
Delivery Month
1
Cost
15000
Progress
30 %
Milestone Title
Testnet Deployment
Milestone Outputs
A fully functional version running on a public or private testnet server, with smart contracts deployed, frontend integrated, APIs connected, and basic features tested for performance, security, and usability.
Acceptance Criteria
Smart contracts compile & deploy without errors, core protocol features function as intended, transactions confirm onchain, test tokens flow correctly, API/UI integrate smoothly, and no critical bugs remain.
Evidence of Completion
A live testnet URL, deployed smart contract addresses, transaction hashes, verified source code on explorer, testnet wallet interactions, and functional UI demonstrating expected features.
Delivery Month
1
Cost
10000
Progress
20 %
Please provide a cost breakdown of the proposed work and resources
Milestone 1: Smart contract development (deposit, minting stablecoin, staking, repayment, withdrawal, liquidation) and testing all functionalities on CLI. This milestone will utilize the services of 2 smart contract developers and the dApp architect for end to end product architecture design and core business logic development for 3 months = 25,000 ADA
Milestone 2: UI integration and wallet connect for seamless testing = 15,000 ADA
Milestone 3: Testnet deployment and Alpha testnet release for select community of testers pre-audit = 10,000 ADA
How does the cost of the project represent value for the Cardano ecosystem?
The project brings long-term value to the Cardano community and treasury by strengthening DeFi with a decentralized, privacy-preserving stablecoin. It provides reliable liquidity, reduces reliance on centralized alternatives, and opens the door for wider adoption by both retail and institutional users. The stablecoin’s integration across DeFi protocols enhances capital efficiency, while the team’s proven track record ensures delivery. This creates sustainable growth, utility, and greater economic activity within Cardano’s ecosystem.
Terms and Conditions:
Yes