ATLAS - Midnight's Next-Generation Yield Layer

[Proposal setup] Proposal title

Please provide your proposal title

ATLAS - Midnight's Next-Generation Yield Layer

[Proposal Summary] Time

Please specify how many months you expect your project to last

3

[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?

Midnight lacks unified yield: fragmented assets, no standard wrapper, no yield marketplace, no fixed-rate tools, hindering liquidity, composability, risk hedging, & 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?

Yes

Please provide here more information on the open source status of your project outputs

Atlas will publish all required Midnight-compatible components as open source, including Compact contracts, demo UI, test suites, and developer documentation. While the full production system will extend beyond this scope, all privacy-focused modules delivered through this proposal will be fully open and freely reusable.

[Theme Selection] Theme

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

Yield

[Campaign Category] Category Questions

What is useful about your DApp within one of the specified industry or enterprise verticals?

Atlas brings private, institutional-grade yield markets to Midnight by combining Cardano Standardized Yield (CSY), PT/YT splitting, and programmable privacy. In public DeFi, yield strategies, discount curves, and liquidity positions are fully exposed. This causes users to be vulnerable to frontrunning, copy-trading, and competitive surveillance. Atlas solves this by using Compact to enable private wrapping, splitting, and trading of yield-bearing assets, allowing users to manage yield exposure without revealing balances, maturities, or strategies. This unlocks fixed-income tools that cannot safely exist on transparent chains, while giving institutions the confidentiality they require to participate. Atlas proves how privacy turns yield into a safer, more efficient, and more composable asset class for the entire Midnight ecosystem.

What exactly will you build? List the Compact contract(s) and key functions/proofs, the demo UI flow, Lace (Midnight) wallet integration, and your basic test plan.

Atlas will deliver a privacy-enabled yield-tokenization protocol and PT/YT markets to operate with selective disclosure and ZK-proofs. We will deliver a core Compact contract, "yield_market.compact", supporting confidential CSY wrapping, private PT/YT ownership proofs, maturity verification without exposing timestamps or balances, and shielding trade intent for AMM interactions. This will demonstrate how yield markets can function securely while protecting user strategies, liquidity positions, and financial history.

The demo UI will interact with the aforementioned Compact contract, integrating fully with the Lace wallet for Midnight compatibility. The demo flow will include the connection to a Midnight wallet, generating and submitting ZK proofs, executing private wrap/split/merge operations, previewing encrypted AMM quotes, and selectively revealing only the required information for settlement. This will provide an end-to-end demonstration of how Atlas operates in a privacy-first environment.

These deliverables will produce a functional implementation of a confidential yield-tokenization protocol on Midnight, establishing Atlas as a foundational yield layer of programmable privacy for DeFi yield infrastructure.

How will other developers learn from and reuse your repo? Describe repo structure, README contents, docs/tutorials, test instructions, and extension points. Which developer personas benefit, and how will you gauge impact (forks, stars, issues, remixes)?

Our repo will be structured to maximize reuse by other Midnight developers. The repository will have the following:

• A dedicated '/contracts' folder with well-documented Compact contracts for private CSY wrapping, PT/YT splitting, and shielded AMM interactions.
• A '/demo-ui' folder housing a working frontend
• A '/wallet' module demonstrating Lace (Midnight) integrations
• A '/tests' directory with runnable privacy-focused test cases and sample inputs/outputs

The README will explain the protocol architecture, why privacy matters for yield markets, a guide for running the demo locally and how to interact with the Compact contract, and clear extension points such as custom AMM curves, new yield wrappers, and institution-grade selective-disclosure logic.

This repo will benefit any developers in the Midnight ecosystem including those learning Compact patterns, teams exploring privacy-enabled UX flows, and protocol engineers seeking examples of shielded financial primitives.

Impact will be gauged through forks, stars, opened issues, pull requests, demo usage, and the number of developers adapting our patterns for their own private DFi protocols.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Atlas addresses one of DeFi’s largest structural gaps: yield remains fragmented, poorly standardized, and difficult for both users and institutions to manage. Our solution is a privacy-enabled yield layer built on Midnight using Compact contracts. Atlas wraps yield-bearing assets into standardized Cardano Standardized Yield (CSY) tokens, then privately splits them into Principal Tokens (PT) and Yield Tokens (YT). This separation allows users to trade, hedge, or lock in yield without exposing positions, wallet balances, or strategy flows.

Midnight’s programmable privacy is essential to this model. Private CSY balances, shielded PT/YT transfers, and selectively disclosed proofs allow institutions and sophisticated users to participate in yield markets without revealing sensitive financial activity. Compact ZKPs ensure that trades, maturities, and yield claims are verifiably correct while keeping the underlying asset flows confidential. This unlocks fixed-income strategies, directional yield trading, and liquidity extraction in a way that is impossible on transparent L1s.

By building Atlas on Midnight, we introduce the first privacy-preserving yield marketplace for Cardano—one where yield becomes a liquid, composable, and confidential asset class. This makes DeFi safer for users, usable for institutions, and significantly more competitive in a multi-chain environment. Atlas positions Midnight as the settlement layer for private, regulated yield markets that currently cannot operate on public chains.

[Your Project and Solution] Impact

Please define the positive impact your project will have on Midnight ecosystem

Atlas will drive meaningful activity on Midnight by executing all core yield operations including wrapping, splitting, trading, and settling CSY, PT, and YT tokens. Through a privacy-preserving Compact contract, each step is verified on-chain using ZK-proofs, ensuring secure, auditable, compliant, and private state transitions.

The PT/CSY AMM generates consistent transaction volume, with swaps, deposits, and multi-leg YT trades triggering multiple Compact contract calls. Staking flows similarly create recurring private on-chain interactions as rewards are managed and distributed through verifiable proofs.

Off-chain batch processing further increases network activity by submitting atomic, multi-step transactions via Compact contracts. By combining private yield tokenization, AMM operations, staking, and batched execution, Atlas establishes high-frequency, privacy-enabled smart-contract engagement, helping Midnight become the go-to platform for confidential DeFi and institutional-ready yield markets.

[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 accountability. Built by the proven Titans team in partnership with Fiwork, a nine-engineer blockchain studio with deep experience in high-assurance infrastructure. Atlas combines expertise in Plutus, Compact contracts, off-chain execution, AMM design, and yield-tokenization.

Feasibility is ensured through a modular architecture separating on-chain Compact contracts, off-chain transaction batching, and database-backed state. Each component is independently testable, and the deterministic simulator validates CSY/PT/YT flows, AMM math, and time-gated constraints before on-chain deployment.

Validation continues in the public testnet MVP phase, where privacy-preserving Compact contracts and associated flows can be verified by the Midnight community. This structured, test-driven approach ensures that Atlas is secure, reliable, and deliverable with transparency, trust, and verifiable results.

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Funds are allocated exclusively to engineering resources, smart contract development, integration, testing, and documentation required to deliver a fully functional privacy-enabled yield DApp. Atlas requests $10,000 USD to fund three key development milestones over three months:

Milestone 1 – Token Protocol & Compact Simulation (3,333 USDM):

Development of CSY/PT/YT token lifecycle logic, Compact contract prototypes, and frontend portfolio interfaces.

Milestone 2 – On-Chain AMM & Token Contracts (3,333 USDM):

Implementation of AMM validator, CSY/PT/YT Plutus contracts, LP logic, staking flows, and unit tests for all smart contracts and privacy proofs.

Milestone 3 – Full Integration & Demo (3,334 USDM):

End-to-end integration of backend, frontend, batcher, database, and Compact contracts with Lace wallet; public testnet deployment, demo UI, and developer-ready documentation.

[Final Pitch] Value for Money

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

The Atlas Compact DApp delivers significant value for the Midnight ecosystem at a modest $10,000 USD. By creating the first privacy-enabled, standardized yield wrapper for Cardano (CSY) with PT/YT splits, the project demonstrates programmable privacy in a high-utility DeFi context. Each milestone produces verifiable outputs: Compact contracts, Lace wallet integration, a testnet MVP, and open-source developer resources. The budget directly funds milestone execution, testing, and documentation. This will ensure tangible deliverables, privacy-preserving workflows, and reusable code. This efficiency maximizes impact per dollar while providing a fully functional, privacy-first prototype that other developers can build upon, fostering adoption, experimentation, and innovation within Midnight.

[Self-Assessment] Self-Assessment Checklist

I confirm that the proposal clearly provides a basic prototype reference application for one of the areas of interest.

Yes

I confirm that the proposal clearly defines which part of the developer journey it improves and how it makes building on Midnight easier and more productive.

Yes

I confirm that the proposal explicitly states the chosen permissive open-source license (e.g., MIT, Apache 2.0) and commits to a public code repository.

Yes

I confirm that the team provides evidence of their technical ability and experience in creating developer tools or high-quality technical content (e.g., GitHub, portfolio).

Yes

I confirm that a plan for creating and maintaining clear, comprehensive documentation is a core part of the proposal's scope.

Yes

I confirm that the budget and timeline (3 months) are realistic for delivering the proposed tool or resource.

Yes

[Required Acknowledgements] Consent & Confirmation

I Agree

Yes