[Proposal setup] Proposal title

Please provide your proposal title

Veil Credit Scoring Protocol For Midnight DeFi Ecosystem

[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?

Veil protocol seeks to ensure that users despite being anonymous while interacting with various DeFi protocols on Midnight can be assessed to show their financial trust-worthiness without disclosure.

[Proposal Summary] Supporting Documentation

Supporting links

• https://github.com/codeBigInt/veil-credit-scoring-protocol
,
• https://veil-credit-scoring-protocol.vercel.app/

[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?

Yes

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

MIT

[Theme Selection] Theme

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

Risk Management

[Campaign Category] Category Questions

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

DeFi applications built on midnight need a means to verify users' financial trust-worthiness, how they behave when the take loans from liquidity pools and other financial behaviours you can imagine. This is the gap Veil credit scroing protocol strives to fill without exposing the identities of involved entities.

Veil provides a mechanism for other DApps or protocols in the Midnight DeFi ecosystem to integrate it into their application creating a standard for regulated financial transaction among user on Minight blockchain network.

It will also allow users mint NFTs to showcase a Proof of Trust-worthiness (PoT) that can be verified onchain.

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.

The project archietecture consist of a modular compact smart contract that includes the following circuits which will be tested using unit testing and testnet simulations. They are:

• verifyTrustScore (Verify actual credit score of the user onchain)
• updateTrustScore (Query the ledger to update score for a specific user)
• mintPoTNFT (Allow minting of profile NFT to demonstrate Proof of Trust-worthiness (PoT))
• revokePoTNFT (Allow veil protocol to ban specific user profile if trust level changes)
• verifyPoTNFT (Allows verification of profile PoT NFT)
• getTrustScore (Query the contract to fetch user's onchain credit score)
• creatTrustProfile (Allow creation of new users on the protocol)
• Admin functionalities.
• Authorized Backend-only specific task.

We will also implement a secure backend services capable of communicating with the contract on behalf of integrating DApp and direct user of the protocol.

The frontend demo will showcase Midnight lace preview wallet connection flow, minting of PoT NFT and its verification and a carefully curated documentation for partner protocols and DApps who intend to inetgrate Veil into their workflows.

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)?

Veil is designed to give Midnight builders a practical, modular example they can easily understand and integrate. The contract circuits like verifyTrustScore, updateTrustScore, mintPoTNFT, and others, mirror the real needs we’ve seen while building DeFi protocols across multiple ecosystem hackathons.

Our key developer personas are:

• DeFi DApp developers who need a simple, privacy-preserving way to verify user trust-worthiness before approving financial actions.
• Protocol integrators building lending markets or risk engines who want a ready-made credit scoring layer they can plug into.
• zk-curious builders looking for a real-world example of Compact, shielded logic, and backend-assisted verification working together.

By providing a full setup; contract, backend, frontend demo, and clear documentation, Veil becomes a reusable template that lowers the barrier for new builders. We expect natural developer activity such as forks, stars, issue discussions, and downstream integrations as more protocols adopt Veil as their trust standard in the Midnight DeFi ecosystem.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

DEFI protocols built on the Midnight blockchain network are big on privacy. Here is a problem associated with this approach. Most of these protocol totally or partially shield the metadata of its users which make it impossible to tell which users is financially trust-worthy to interact with. Especially in decentralized applications where users interact directly or indirectly with each other such as lending, collateralized stablecoin, DEX, Staking, Yield and Payment protocols.

How veil protocol solves this issue

Veil protocol provides an onchain verifiable platform that will be integratable into other protocol via API calls for now since contract-contract interaction are not yet available on midnight and enable them to track users' financial behavior through immutable onchain credit score allocation as they interact with these protocols without disclosing their identities, reducing the risk of financial bankruptcy. It also provides a means for users to demonstrate financial trust-worthiness using NFTs minted from our credit-scoring protocol.

[Your Project and Solution] Impact

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

The success of veil protocol can be measured when we consider several metrics, which include:

1. Protocol adoption and integration
2. User adoption for Proof of Trust-worthiness (PoT).
3. Economic implication on partner protocol
4. Sufficient risk-managment level.
5. Number of DEFI protocol replacing traditional KYC with Veil zk-credit-scoring system.

• Protocol adoption and integration: We intend to see several current protocols and futre built on midnight integrate veil for proper risk managment. The number of integrations is a key success metric that indicate the relevance of the protocol to the DEFI ecosystem in midnight.
• User adoption for Proof of Trust-worthiness (PoT): Total number of minted PoT NFT minted by users of DEFI decentrallized application will indicate market demand for privacy-based credit scoring.
• Economic implication on partner protocol: The financial impact of Veil on partner protocols is a key success metric. By using Veil’s zk-credit-scoring system, protocols can increase loan volumes, lower collateral for trusted users, and reduce defaults. This improves Annual Percentage Yields (APYs), boosts liquidity, and strengthens overall protocol performance showing that Veil delivers real economic value to the Midnight ecosystem.
• Sufficient risk-management level: Measuring how effectively Veil reduces bad debt, liquidation events, and high-risk interactions is critical to evaluating its success. A significant drop in default rates and more stable lending markets across integrated protocols will signal that Veil is providing strong, privacy-preserving risk management.
• Number of DeFi protocols replacing traditional KYC: A major success indicator is how many protocols choose Veil’s zk-credit-scoring system instead of intrusive KYC. As more protocols rely on Veil to verify trustworthiness without exposing user identities, it demonstrates strong confidence in Veil’s privacy-first approach and its relevance in the Midnight ecosystem.

[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?

Experience and Achievements in the Midnight Ecosystem

Within the past few month of the year, my team (Lucentlabs) has demonstrated expertise in developing several DeFi related decentralized dapps in the midnight ecosystem through participation in ecosystem hackathons and emerging as winners in almost all of them including the just concluded Midnight summit hackathon where we emerged as winners for the finance track.

Our experience also span through collaboration with other DeFi protocol such as Fluid Token, a lending protocol built on Midnight blockchain. My extensive period of active participation in the ecosystem building DeFi dapps was the main source of inspiration for Veil credit-scoring protocol, seeing that they all share similar problem of failure to ensure financial-trustworthiness amongst user.

Project Feasibility

The protocol feasibiility depends on the following stages, which include;

1. Modular Smart contract design.
2. Proper Backend API archietecture.
3. Quality API documentation for seamless intetgration.
4. Frontend integration for profile nft miniting.
5. Consistent revision based on defi ecosystem requirements

Each of these stages of the protocol development requires proefficient expertise which my team possess. From sleek UI/UX design, to contract developement and backend integration which will be spare-headed by me also with the assistance of two of two other compact smart contract developers; Samir Idris (With proven knowledge of development on Cardano using AIKEN) & Bamidele Joseph (Compact smart contract developer and Full Stack engineer), down to proper API documentation which will be written by me.

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

The project is divided into three milestones, each with specific deliverables that build toward a complete, production-ready solution:

Milestone 1: Smart Contract & Backend Integration ($USDM 2,000)

Covers development and deployment of the core smart contract on testnet, plus backend service implementation with API integration and CLI testing. This establishes the foundational infrastructure that other DApps can call.

Milestone 2: Frontend DApp for PoT Minting ($USDM 3,000)

Handles complete UI/UX design and frontend development, including wallet connection and the full Proof-of-Trustworthiness NFT minting flow. This creates the user-facing interface that makes the system accessible.

Milestone 3: Documentation & Website Redesign ($USDM 5,000)

Delivers comprehensive technical documentation for smart contracts and APIs, integrated directly into Veil's website, plus a redesigned landing page. This ensures developer adoption and clear communication of the project's value across the Midnight ecosystem.

Each milestone includes all necessary development, testing, design, integration, and documentation work. The total $10,000 budget reflects the technical complexity of building a complete trust attestation system from smart contracts through user interface to production-ready documentation that will serve as infrastructure for the broader ecosystem.

[Final Pitch] Value for Money

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

The budget for this project is structured in a way that ensures every resource is tied directly to the core development flow, smart contract engineering, backend architecture, frontend integration, UI/UX design, and proper technical documentation. Nothing here is abstract or inflated; each cost aligns with real deliverables that move Veil toward becoming a production-ready credit-scoring protocol within the Midnight ecosystem.

All development work will be handled by our in-house team, which already has proven experience building DEFI-focused dApps on Midnight. This allows us to manage funds efficiently since we’re not outsourcing critical components. The budget covers the engineering time needed to build the contract logic, implement the backend API layer, integrate wallet and DApp interactions, design a clean user experience for PoT minting, and produce high-quality documentation that developers can rely on.

Every expense here falls under eligible cost categories based on Fund Rules which includes development, testing, documentation, and design. The work follows a clear timeline, and the budget is allocated strictly to technical tasks that improve reliability, usability, and developer adoption. By keeping the workflow modular and validating each stage before moving forward, the project ensures strong value for money while maintaining full accountability in how the funds are managed.

[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