ATLAS - Privacy-Focused Yield Tokenization

[Proposal setup] Proposal title

Please provide your proposal title

ATLAS - Privacy-Focused Yield Tokenization

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

200000

[Proposal Summary] Time

Please specify how many months you expect your project to last

5

[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?

Cardano lacks unified yield: fragmented assets, no standard wrapper, no yield marketplace, no fixed-rate tools, hindering liquidity, composability, risk hedging, and institutional-grade participation.

[Proposal Summary] Supporting Documentation

Supporting links

• https://medium.com/@houseoftitans/atlas-white-paper-5e904a736f2f
,
• https://x.com/MidnightNtwrk/status/1987165502074916964?s=20
,
• https://x.com/IOHK_Charles/status/1987202818042962306?s=20

[Proposal Summary] Project Dependencies

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

No

Describe any dependencies or write 'No dependencies'

ATLAS has no external organizational dependencies that limit its ability to launch or operate. The Titans Core Team leads the project’s architecture, design, and protocol direction. For execution, Titans has contracted FIWORK/DEGA — a proven blockchain engineering studio — to deliver development, QA, and DevOps work. This is a structured service relationship, not a dependency on another protocol or external system. No other organizations or infrastructure are required for ATLAS to function once deployed.

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

No

Please provide details on the intellectual property (IP) status of your project outputs, including whether they will be released as open source or retained under another licence.

Atlas will retain its core smart contract architecture and backend systems as proprietary IP to protect security, prevent fork-based exploits, and ensure long-term protocol integrity. While documentation and integration guides will be publicly available, the underlying codebase will not be open-sourced and will remain licensed under a closed, protocol-governed model.

[Theme Selection] Theme

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

Yield

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).

In DeFi today, the concept of yield tokenization, splitting a staked asset into tradable “principal” and “yield” components, has already been proven to be a multi-billion dollar market. Pendle Finance, on Ethereum, has pioneered this model reaching a $1.1+ billion market cap in 2024, with TVL currently at $5+ billion and $PENDLE’s price exploding by +590% through 2024 clearly displays strong demand within this sector.

Likewise, Spectra Finance (formerly APWine) is another Ethereum-based PT/YT splitting protocol, focusing on stablecoin yield markets and permissionless pools. Spectra’s TVL reached ~$190+ million in early 2025. The key takeaway is that the value in yield-trading protocols is tied to the project’s TVL and revenue. As the protocol continues to generate consistent value, in both Pendle and Spectra’s cases, the token and project value rise accordingly.

That being said, Ethereum has a vastly different ecosystem and depth of liquidity compared to Cardano, as it has only recently been incubating similar products. Optim Finance takes a different approach to ADA yield, essentially acting as a Cardano yield aggregation and bond platform, as opposed to a PT/YT marketplace. Offering Liquidity Bonds (on-chain fixed-yield bonds) and the OADA/sOADA two-token system for enhanced ADA staking yields. This OADA mechanism creates 1:1 ADA-backed synthetic tokens and a staked sOADA variant accruing staking yield. While still boosting ADA staking income, this does not create a secondary yield marketplace that Atlas is aiming to create.

Atlas looks to disrupt this nascent space by combining the proven market mechanics with new features. Atlas will tokenize staked assets into tradable Principal and Yield tokens, unlocking immediate liquidity from staking. Where Atlas differs primarily are threefold: privacy and compliance, cross-chain structure, and asset-backed ecosystem integrations that competitors are currently lacking.

Created by the same visionary minds behind Titans, Atlas is being built from the ground up for operations within Cardano by default, and soon to have Midnight integrations soon after MVP. Our partnership with the Midnight Foundation ensures our launch will be smooth and stable with exclusive access to their elite suite of experts in marketing, partnerships, and developer support. Atlas will bring privacy-enhanced, compliant yield markets, cross-chain interoperability, and composable DeFi architecture. This level of privacy is not available within the Cardano ecosystem or even with industry juggernauts like Pendle.

Atlas iterates on Pendle’s yield-splitting in a Cardano-centric context, by packaging institutional-grade design and revenue incentives. Fixed yields, hedging, speculative trading, and yield markets are all offered under private and compliant protocol. This captures both retail and institutional demand, a feature that other leading protocols across Web3 struggle to capture. Atlas is leveraging Cardano’s strengths while filling gaps left by other competitors. Combining private, cross-chain yield markets and fee-sharing makes Atlas a compelling next step in the growing yield-tokenization ecosystem.

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

Atlas’ MVP will deliver a fully functional, public testnet deployment that demonstrates the complete user experience of Cardano Standardized Yield (CSY), Principal Tokens (PT), Yield Tokens (YT), and Atlas’ time-weighted AMM. Throughout development, each milestone produces an independently testable layer of the system—beginning with a deterministic simulator used to validate the AMM, quoting engine, liquidity operations, and early frontend flows. Subsequent milestones expand this simulator to include the full CSY/PT/YT lifecycle, before transitioning into live Plutus implementations of the AMM and tokenization stack.

By the final milestone, all simulated components are replaced with actual smart contracts, the batcher is fully integrated, and Atlas operates end-to-end on Cardano testnet. Users will be able to wrap assets into CSY, split them into PT/YT, trade through the AMM, provide liquidity, observe maturity behavior, and test real transaction flows. The completed prototype will be made publicly accessible through a dedicated Atlas testnet interface, supported by full API documentation and open UAT testing for the community.

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

Success for Atlas will be demonstrated through the real adoption of Cardano Standardized Yield (CSY) and the PT/YT marketplace. The most direct indicators of impact are the number of CSY wrapping transactions, the volume of PT and YT minting and merging operations, and total swaps and liquidity interactions executed through Atlas’ time-weighted AMM. Each of these actions requires a Cardano transaction and represents the protocol’s core value being used in practice.

Additional success metrics include TVL deposited into Atlas markets, total liquidity provided to PT/CSY pools, daily swap volume, and user participation in maturity-based redemptions. As the batcher executes multi-leg PT↔CSY↔YT routes, the frequency and size of these batched transactions will provide another clear signal of protocol utility and user demand.

Off-chain indicators complement these blockchain metrics, such as the number of unique users interacting with the testnet prototype, the speed and clarity of UAT feedback, community participation in public testing, and integrations or interest from Cardano dApps evaluating CSY as a new shared yield primitive. Together, these measures provide a realistic and transparent framework for evaluating Atlas' early traction and long-term potential to significantly expand on-chain economic activity across Cardano DeFi.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Atlas directly addresses the aforementioned gaps by creating the first standardized yield layer for Cardano. It begins by wrapping yield-bearing assets into Cardano Standardized Yield (CSY) tokens. These are Atlas’s unified token format that abstracts all yield sources, normalizing how yield is accrued, valued, and represented. This creates a predictable interface that any protocol can integrate, enabling interoperability and composability between previously isolated assets. Once wrapped, CSY tokens can be split into Principal Tokens (PT), and Yield Tokens (YT), allowing users to separate the underlying deposit from its future yield, and unlocks a whole suite of entirely new financial behaviors.

Atlas will position itself as Cardano’s first on-chain yield marketplace. Atlas provides an environment where yield can be bought, sold, hedged, or speculated on, just like any other financial asset. This transforms yield from a passive and locked volume into an active market, enabling fixed-income strategies, directional yield trading, and efficient liquidity extraction.

Atlas is also proud to be partnered with Midnight, with integration planned soon after the MVP launch. Midnight’s privacy-focused zero-knowledge layer grants users and institutions a secure and compliant trading ecosystem, resolving one of Cardano’s largest institutional adoption challenges. Furthermore, Midnight’s chain agnostic feature suite allows Atlas to scale far beyond the scope of Cardano, unlocking previously trapped liquidity and accessing cross-chain markets. Atlas is positioned as the bridge between private institutional finance and public decentralized markets.

Cardano cannot fully mature without a unified yield standard and a marketplace that turns yield into a liquid, composable asset class. Today, yield is fragmented, inaccessible, and difficult to manage. This causes unneeded friction for users, limiting Cardano’s competitiveness, and preventing enterprise-grade products from emerging. Atlas’ universal yield wrapper, principal-yield split market, time-weighted AMM, privacy-enabled execution, and chain-agnostic infrastructure will unlock the next generation of Cardano DeFi.

We envision Atlas as the missing yield layer that makes Cardano competitive, attractive to institutions, and capable of supporting the next generation of decentralized financial innovation.

[Your Project and Solution] Impact

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

Atlas inherently generates sustained on-chain activity because every core function of the protocol is executed and settled directly on the Cardano ledger. The system is built around CSY – the Cardano Standardized Yield wrapper – and the transformation into PT and YT tokens under strict maturity rules. Each step of this lifecycle requires smart-contract enforcement occurring entirely on-chain. Wrapping ADA-denominated yield into CSY, splitting that into PT and YT, merging or redeeming them at or after maturity, and interacting with the PT/CSY AMM all produce verifiable on-chain transactions. These operations are not optional or cosmetic, they are the basis of how users obtain Atlas’ CSY exposure and how the protocol maintains parity (CSY = PT + YT), time-weighted discounting (PT_price = e^(−r·T)), and the integrity of the market.

The PT/CSY AMM itself is another major generator of transaction volume. The AMM enforces a time-weighted invariant on-chain (x^(1−t)·y^(1−t) = k), validates minOut and validity parameters, updates pool reserves, charges fees, and mints or burns LP shares. All swaps. Liquidity deposits, and withdrawals require ledger-level execution governed by Plutus validators. Due to the MVP routing YT trades through atomic multi-leg transactions, every YT market action applies multiple transactions on-chain. As TVL grows, liquidity providers adjust positions, pools are rebalanced, and traders respond to changing implied yields, each behavior translates directly into sustained transactions.

Atlas will also introduce a unique on-chain driver of activity through its Stake Validator. ADA delegated in each market’s vault is registered, staked, and later withdrawn exclusively through validator-controlled transactions. The protocol staking rewards on-chain, forwarding them to the configured beneficiary or vault triggers predictable per-epoch interactions. These flows cannot be executed off-chain or abstracted away due to their necessity in how the CSY flow works to reflect ADA yield.

Lastly, the protocol’s off-chain batcher produces atomic multi-leg trades, fee swaps, and scheduled liquidity operations consistently. Each successful batch results in signed transactions submitted to the chain recorded in persistent batch logs. This creates an additional layer of routine on-chain activity scaling with usage and market participation.

Atlas requires Cardano, relying heavily on its UTxO-level determinism, validator-enforced invariants, reference inputs, stake credentials, and native tokens to guarantee security and correctness. Every essential function for Atlas’ operations; wrapping, unwrapping, splitting, merging, swapping, LP operations, fee handling, staking flows, and batched routes execute through Plutus validators. Atlas verifiably contributes to increased transaction volume, deeper liquidity movement, and consistent smart-contract engagement across the network. This is the foundation of a high-utility, yield-driven DeFi system that transforms Cardano’s staking economy into clear on-chain transactional demand.

[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?

The Atlas team is uniquely positioned to deliver this project with high trust and technical reliability. Being developed by the proven team behind Titans, and in partnership with Fiwork -- a nine-engineer blockchain studio with deep experience building high-assurance infrastructure across Cardano. This combined team brings extensive expertise in Plutus engineering, off-chain systems, AMM design, yield-tokenization logic, and large-scale backend architecture. The protocol’s design has already been validated through a detailed five-month roadmap, a deterministic simulator, and a fully scoped set of milestones that progressively move from off-chain modeling to real on-chain contracts.

Feasibility is ensured through Atlas’ modular architecture, which cleanly separates on-chain validators, off-chain quoting and transaction building, and database-backed state management. Each component is independently testable, allowing us to validate every part of the system before integration. The deterministic simulator used in Milestones 1 and 2 allows the team to confirm that all AMM math, CSY/PT/YT logic, time-gated constraints, and user flows behave exactly as intended before being moved into Plutus. Once the real validators are implemented in Milestones 3 and 4, they are reinforced with strict unit tests, datum schemas, value-conservation checks, and maturity-based rule enforcement. This ensures that each on-chain element is mathematically correct, secure, and resistant to failure before public release.

Feasibility will be ensured at the testnet MVP milestone. This public phase allows the Cardano community to validate wrapping, splitting, trading, LP provisioning, maturity progression, and reward flows in a real environment. With this structured, test-driven delivery process and a team with demonstrated success in complex on-chain engineering, the Atlas project is not only feasible, but positioned for accountable, transparent, and verifiable delivery from prototype to launch.

[Milestones] Project Milestones

Milestone Title

Token Protocol Simulation

Milestone Outputs

Building on the AMM layer, this milestone expands the simulator to include a complete CSY/PT/YT workflow. This will cover wrapping underlying assets (ADA) into CSY, then splitting these interface-level tokens into PT and YT, merging before maturity, and redeeming at maturity. The frontend is extended with a full portfolio interface, displaying token balances, maturities, and action availability as time-based constraints evolve. The database is expanded to include markets, wrapper metadata, and simulated user positions.

This milestone will ensure that the full token model is validated before Plutus development begins, granting the public a working demonstration of Atlas’ core value proposition and functionality.

Acceptance Criteria

Token Protocol backend + UI, updated OpenAPI, integrated dev instance demonstrating tokenization flows with simulated data.

• Backend deployed and functional for wrap/split/redeem with the simulator.

• Frontend simulates wrap, split, redeem and shows positions per maturity.

Evidence of Completion

Atlas will provide the following as proof of completion:

• A Github or equivalent repository with source code
• Up-to-date technical documentation
• Video showcasing the milestones and features

Delivery Month

1

Cost

50000

Progress

20 %

Milestone Title

AMM Smart Contracts

Milestone Outputs

With both major components simulated, this second milestone introduces the first on-chain deliverables. These include the AMM validator, the LP minting policy, and the pool datum structure. These Plutus scripts implement the time-weighted invariant, input-side fees, protocol fee sharing, min-out checks, and maturity gating.

A comprehensive unit test suite verifies the correctness of proportional liquidity, invariant enforcement, and failure modes. This milestone establishes the secure, verifiable foundation for the real liquidity pools that will power Atlas.

Acceptance Criteria

Plutus sources, Unit Test Suite & Report (fee calc, minOut, proportional liquidity, invalid transitions rejection), Technical Documentation (datum/redeemer, security notes).

• Scripts compile and pass unit tests
• Logic matches AMM technical specification (formulas above)

Evidence of Completion

Atlas will provide the following as proof of completion:

• A Github or equivalent repository with source code

• Up-to-date technical documentation

• Video showcasing the milestones and features

Delivery Month

2

Cost

50000

Progress

40 %

Milestone Title

Token Protocol Smart Contracts (Plutus)

Milestone Outputs

The third and penultimate milestone completes the on-chain tokenization stack with Plutus implementations for the CSY wrapper, PT/YT minting and merging, vault identity, and configuration reference UTxO logic. These scripts will define core economic and time-gated rules that govern value conservation, yield claims, maturity windows, and configuration anchoring.

Debugging, unit testing, and technical documentation ensure consistent behavior and verifiable token lifecycles. At this stage, the entire protocol exists on-chain, ready for full integration.

Acceptance Criteria

• Plutus sources for all modules.
• Unit Test Suite (mint/burn rules, time-gated logic pre/post maturity, nonce progression, fee accounting).
• Technical Documentation (Vault/Config datums and redeemers).
• Contracts compile and pass tests.
• On-chain rules match Token Protocol specification.

Evidence of Completion

Atlas will provide the following as proof of completion:

• A Github or equivalent repository with source code

• Up-to-date technical documentation

• Video showcasing the milestones and features

Delivery Month

3

Cost

50000

Progress

70 %

Milestone Title

Unified Integration, Testing, and Testnet Deployment

Milestone Outputs

The fifth and final milestone will replace all simulated logic with live contracts. This will unify the backend, frontend, batcher, and database with real on-chain interactions. The batcher is fully implemented to support atomic multi-leg routing for YT markets, protocol fee sweeping, and staking reward withdrawals for ADA-based yields.

Deployment tooling will be prepared, including reference scripts, config UTxO creation, and first-market bootstrapping. A public testnet instance is planned to launch with a complete end-to-end user flow for wrapping, splitting, trading, LP provision, maturity progression, and reward handling. Final QA, reporting, and UAT community testing will be the deliverable for this milestone, with a full mainnet launch planned soon after this milestone.

Acceptance Criteria

• Fully integrated code (backend, frontend, Plutus).

• Deployment/runbook docs.

• Public testnet instance.

• Final E2E test report (wrap→split, PT↔CSY swaps, routed YT via PT/CSY, LP add/remove, fee sweep, maturity boundary behavior, and stake-withdraw job).

• Application operational on public testnet, all user flows functional end-to-end from UI to on-chain.

• All simulated logic removed, live smart contracts in place.

• System stable and ready for formal UAT sign-off.

Evidence of Completion

Atlas will provide the following as proof of completion:

• A Github or equivalent repository with source code

• Up-to-date technical documentation

• Video showcasing the milestones and features

• Public testnet launch of the MVP for UAT and further iterations available.

Delivery Month

4

Cost

50000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Atlas is structured around a four-milestone development plan. We have already been developing the deterministic AMM simulator, backend quoting engine, early frontend UX, core database schemas, and OpenAPI documentation. This has established the foundation for the remaining on-chain work.

Catalyst funding is requested for each following milestone budgeted at 50,000 ADA, reflecting equivalent engineering complexity, infrastructure requirements, and QA needs. The total funding requested is 200,000 ADA.

Milestone 1- CSY/PT/YT Token Protocol Simulation (50,000 ADA)

Expands the simulator to include the full token lifecycle: CSY wrapping, PT/YT splitting and merging, maturity logic, and expanded portfolio and market interfaces. This milestone demonstrates Atlas’ yield-tokenization mechanics end-to-end before touching Plutus.

Milestone 2 - AMM Smart Contracts (50,000 ADA)

Implements the on-chain AMM validator, LP minting policy, time-weighted invariant enforcement, input-side fees, and a full unit test suite. This establishes Atlas’ foundational liquidity and pricing engine directly on Cardano.

Milestone 3 - Token Protocol Smart Contracts (50,000 ADA)

Delivers Plutus implementations for the CSY wrapper, PT/YT mint/merge rules, vault identity logic, maturity constraints, and configuration reference UTxO enforcement. This completes the on-chain tokenization architecture that underpins all yield markets.

Milestone 4 - Full Integration & Public Testnet Deployment (50,000 ADA)

Unifies all components—smart contracts, backend, frontend, batcher, and database into a live public testnet. Includes deployment tooling, multi-leg routing for YT markets, staking reward flows, protocol fee handling, QA, and UAT with the Cardano community.

[Final Pitch] Value for Money

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

The Atlas project represents exceptional value for the Cardano community by delivering the first standardized yield layer and an on-chain marketplace for composable yield assets. For a total funding request of 200,000 ADA, the project will deliver a fully functional prototype with live smart contracts, multi-leg AMM routing, tokenized principal and yield instruments (PT/YT), and a public testnet ready for community testing and feedback.

Each milestone is tightly scoped to provide independently testable and auditable components, ensuring that every ADA spent directly advances the ecosystem’s infrastructure. Beyond the immediate technical deliverables, Atlas unlocks liquidity for previously siloed yield-bearing assets, enables new financial behaviors like yield trading, fixed-income strategies, and hedging, and establishes a platform that institutional and retail participants can safely and transparently interact with.

By creating a reusable, composable standard (CSY) and demonstrating robust on-chain integrations, Atlas maximizes the impact of every dollar of funding, building infrastructure that benefits future protocols, developers, and users alike. The structured milestone plan, coupled with rigorous testing and audit-ready documentation, ensures that the Cardano commu

[Self-Assessment] Self-Assessment Checklist

I confirm that evidence of prior research, whitepaper, design, or proof-of-concept is provided.

Yes

I confirm that the proposal includes ecosystem research and uses the findings to either (a) justify its uniqueness over existing solutions or (b) demonstrate the value of its novel approach.

Yes

I confirm that the proposal demonstrates technical capability via verifiable in-house talent or a confirmed development partner (GitHub, LinkedIn, portfolio, etc.)

Yes

I confirm that the proposer and all team members are in good standing with prior Catalyst projects.

Yes

I confirm that the proposal clearly defines the problem and the value of the on-chain utility.

Yes

I confirm that the primary goal of the proposal is a working prototype deployed on at least a Cardano testnet.

Yes

I confirm that the proposal outlines a credible and clear technical plan and architecture.

Yes

I confirm that the budget and timeline (≤ 12 months) are realistic for the proposed work.

Yes

I confirm that the proposal includes a community engagement and feedback plan to amplify prototype adoption with the Cardano ecosystem.

Yes

I confirm that the budget is for future development only; excludes retroactive funding, incentives, giveaways, re-granting, or sub-treasuries.

Yes

[Required Acknowledgements] Consent & Confirmation

I Agree

Yes