Rolling Loans: Continuous Borrowing on Danogo

[Proposal setup] Proposal title

Please provide your proposal title

Rolling Loans: Continuous Borrowing on Danogo

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

75000

[Proposal Summary] Time

Please specify how many months you expect your project to last

8

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

Fixed-term loans on Cardano require manual renewal. Borrowers must repay and create new loans, losing their position. This reduces efficiency, limits long-term borrowing strategies.

[Proposal Summary] Project Dependencies

Does your project have any dependencies on other organizations, technical or otherwise?

No

Describe any dependencies or write 'No dependencies'

No dependencies

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

No

License and Additional Information

Smart contracts are open source

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal.

Lending

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).

Our feature lets borrowers extend or switch between fixed and floating terms without full repayment, keeping collateral locked and active. This reduces friction, lowers costs, and enables long-term borrowing strategies—bringing a proven DeFi model to Cardano for the first time.

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

Our MVP will provide rolling loan mechanism deployed on the Cardano testnet.

It will demonstrate:

• Extending fixed-term loans without full repayment.

• Switching between fixed and floating rate loans seamlessly.

• Maintaining collateral in the lending pool while the loan is rolled.

User can access our testnet environment to experience this feature.

Describe realistic measures of success, ideally with on-chain metrics.

• 50+ borrowers using rolling loan feature.
• 150+ loan rollovers executed on-chain.
• ≥ 80% retention rate for borrowers after initial term.
• This may increase in average loan duration from 30 to 60+ days.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Currently, borrowers in Cardano lending protocols must close and reopen loans to extend their term. This means:

• Extra transaction fees.

• Temporary loss of collateral utility.

• Potential loss of fixed interest rates.

Rolling Loans solve this by allowing borrowers to:

• Extend their loans upon maturity.

• Roll over principal + interest into a new term without repaying current loand and withdrawing collateral.

• Switch between fixed term and flexible term.

• Avoid unnecessary on-chain steps, reducing costs and improving UX.

How it works:

At or before maturity, the loan can be “rolled” into a new term.

User can choose to extend or switch to flexible term.

Smart contracts calculate a new loan's amount and extend the maturity date.

Collateral move to the new loan without requiring to unlock.

[Your Project and Solution] Impact

Please define the positive impact your project will have on the wider Cardano community

Borrowers gain uninterrupted access to liquidity.

Lenders benefit from continuous interest income.

DeFi protocols see increased borrow volumes and higher loan retention rates.

Ecosystem gains a new standard for long-term borrowing.

[Your Project and Solution] Capabilities & Feasibility

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?

We are committed to delivering our project with utmost trust and transparency, underpinned by several key factors:

• Deep Expertise in Cardano Development: With more than 10 years of Web2 and 2 years of Smart Contract development experience, our team is equipped to tackle the most complex challenges.

• We follow Agile project management principles to maintain clear communication, align objectives, and ensure accountability throughout development.

• Our process is streamlined with standardized practices, including thorough documentation, code optimization, and a focus on scalability.

• We prioritize quality assurance through rigorous testing and formal audits.

• Collaboration and feedback from our users and community are highly valued.

• All our smart contracts are open-source that reinforces our commitment to transparency. This open approach fosters greater trust and accountability, ensuring our code is fully accessible for review and actively contributes to the wider blockchain community.Capability & Feasibility

Validation

Launch public testnet for community trials.

Refine based on user and developer feedback before mainnet.

[Milestones] Project Milestones

Milestone Title

Smart contract development

Milestone Outputs

A fully functional smart contract implementing the rolling loan mechanism for both fixed and floating pools. The contract will include rollover logic, interest recalculation, and updated maturity handling, designed to improve capital efficiency.

Acceptance Criteria

The smart contract must compile successfully, pass internal unit and integration tests, and be deployed to a private Cardano testnet.

Test results must confirm rollover logic works correctly without requiring loan repayment.

Evidence of Completion

Evidence will include detailed test results, a technical report describing test scenarios, and links to private testnet deployment transactions.

Preview transaction IDs will be shared to demonstrate functionality.

Delivery Month

3

Cost

20000

Progress

30 %

Milestone Title

Feature integration

Milestone Outputs

Complete front-end and back-end integration of the rolling loan feature into the interface. Users will be able to view, open, extend, and repay loans with a seamless experience across wallet and smart contract layers.

Acceptance Criteria

Our testers and developers must be able to open loans, roll them over, and repay them directly through the front-end.

Integration must be stable, intuitive, and free from blocking UI/UX issues across supported wallets.

Evidence of Completion

Evidence will include a published integration test report detailing successful user journeys, screenshots or demo video of workflows, and links to testnet deployments showing correct contract interactions.

Delivery Month

2

Cost

20000

Progress

30 %

Milestone Title

Public Testnet

Milestone Outputs

Launch of the rolling loan feature on Cardano public testnet, available to all community members. Includes a dedicated interface, user guide, and open access for borrowers and liquidity providers to experiment with the feature.

Acceptance Criteria

Users on testnet must be able to open, roll over, and repay loans reliably. Transactions must be visible on a Cardano testnet explorer, and the feature should gather meaningful community feedback on usability and functionality.

Evidence of Completion

Evidence will include a live public testnet link, detailed logs of community feedback and bug reports, and published transaction data (including IDs and summaries) confirming successful testnet usage.

Delivery Month

1

Cost

15000

Progress

20 %

Milestone Title

Mainnet Deployment & Close-Out

Milestone Outputs

Deployment of the rolling loan feature on Cardano mainnet, complete with updated documentation, a comprehensive project report, audit report, and a professional close-out video demonstrating its purpose, functionality, and ecosystem value.

Acceptance Criteria

The feature must be live and functional on Cardano mainnet, with complete technical and user documentation publicly available.

A final report and video must clearly demonstrate delivered outcomes and impact to Catalyst.

Evidence of Completion

Evidence will include transaction IDs of mainnet deployments, public links to updated documentation and guides, and a published audit report, close-out report and video shared with the Cardano community and Catalyst reviewers.

Delivery Month

2

Cost

20000

Progress

20 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

1. Project management: 5,000 ADA

2. Development of Core Features: 50,000 ADA

• Backend Development (Blockchain integration, database setup): 10,000 ADA

• Frontend Development (User interface implementation): 10,000 ADA

• Smart Contract Development (Smart contracts for Bond issue, Price matching, Bond Redeem): 25,000 ADA

• Quality Assurance: 5,000 ADA

1. Audit: 10,000 ADA

2. Launch Test net: 10,000 ADA

• Marketing: 5,000 ADA

• Reward: 5,000 ADA

Total budget: 75,000 ADA

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

The budget for this project is lean, transparent, and high-impact, ensuring every ADA delivers measurable improvements for Cardano’s DeFi ecosystem.

Cost Basis & Efficiency

Development costs are based on local wages in Vietnam, which are significantly lower than global blockchain rates. By keeping development in-house, we avoid outsourcing fees while maintaining international standards. Our effective costs are ~30–40% of typical blockchain developer rates, making this highly cost-effective.

High Ecosystem Impact

Rolling loans bring capital efficiency and borrower retention to Cardano, increasing lending market activity. This is a new feature not yet available in Cardano DeFi, and the code will be open source for reuse by other protocols.

Transparency & Accountability

Costs are tied to clear milestones: development, integration, testnet, and mainnet. We will share open-source code, testnet access, and regular progress updates, ensuring full accountability to the community.

In summary: This proposal delivers a first-of-its-kind lending feature for Cardano at a fraction of global costs, maximizing ecosystem impact while remaining transparent and efficient.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes