• This proposal will lead to the development of BTC Staking dapp, a seamless, one-click DeFi gateway for Bitcoin holders on Cardano. This solution will allow:

• BTC Onboarding Without Friction – Danogo eliminates the need for multi-platform bridging. Users can stake BTC directly from their wallet through a simple interface.

• Smart Contract-Powered Yield – BTC is locked in BTC script and managed by Cardano's Smart Contract, allowing to supply to a decentralized Float Lending Pool. Users earn yield securely, with all interactions recorded and enforced on-chain.

• Cross-Chain Liquidity Activation – The protocol unlocks dormant Bitcoin liquidity by allowing BTC holders to access lending, staking, and eventually trading opportunities on Cardano. This serves as a critical liquidity bridge between Bitcoin and Cardano ecosystems.

• Leverage & Perpetuals Enablement – With a deep BTC Float Pool in place, Danogo lays the groundwork for perpetual trading markets like BTC/ADA and BTC/stable pairs, supporting leverage trading and risk management use cases native to Cardano.

• Protocol Revenue & ADA Yield Growth – Increased borrowing, trading, and staking activity drives on-chain fees,funneling value to Cardano’s stake pools, governance treasury, and liquidity providers. More BTC flow means more protocol usage and higher ADA staking rewards.

Here are the next Steps for Development: Smart Contract Infrastructure

• Finalize and deploy the smart contract to manage locked BTC
• Conduct stress testing of lending pool dynamics and perpetual trading design assumptions.
• Integrate robust monitoring and security layers for cross-chain asset verification and liquidity events.

Front-End User Experience

• Develop a seamless one-click UI for BTC staking, lending, and eventually trading.
• Incorporate visualizations of user position, APY, collateral health, and real-time Float Pool status.
• Implement guided UX for first-time users to onboard BTC without prior Cardano experience.

BTC Float Pool Mechanics

• Launch a scalable Float Lending Pool that routes BTC into Cardano DEXs and yield protocols.
• Introduce liquidity provisioning incentives and optimize for capital efficiency and borrower demand.
• Explore the integration of dynamic interest rate models to balance supply/borrow dynamics.

Perpetual Market Layer (R&D Phase)

• Begin development of BTC-backed perpetual trading, using the Float Pool as margin source.
• Model risk parameters, funding rate mechanisms, and liquidation logic specific to BTC/ADA and BTC/stable markets.
• Align leverage architecture with Cardano’s eUTXO structure for deterministic execution.

While Danogo begins with Bitcoin, its underlying model, bridging real-world, external liquidity into Cardano through smart contracts and user-centric design,can scale far beyond BTC. The ability to abstract away onboarding friction while maintaining control and transparency has implications across digital assets, synthetic trading, and even tokenized real-world assets in the future.

It's hard to bring BTC to Cardano due to the process complexity and Cardano DeFi knowledge barriers.

This project intends to develop a BTC-focused DeFi decentralized application (dApp) that allows Bitcoin holders to participate in Cardano DeFi with seamless interaction using only their BTC wallets without them even knowing about Cardano, while leveraging Cardano’s smart contracts behind the scenes to enable efficient, secure, and user-friendly participation in Cardano’s DeFi ecosystem

• Danogo offers a better UI/UX that enables Bitcoin (BTC) holders to seamlessly and effortlessly participate in Cardano’s DeFi ecosystem. Through a simple one-click interface, users can stake BTC directly from their wallets which will be locked in Bitcoin script, managed by Cardano smart contract and supplied to the Danogo Float Lending Pool. This intuitive flow eliminates complex, multi-step processes typically required for cross-chain DeFi, making access easy even for first-time users. By lowering friction, Danogo accelerates adoption and unlocks new participation from BTC holders who have traditionally remained on the sidelines.

• The BTC liquidity through Danogo Float Lending significantly strengthens Cardano’s DeFi infrastructure. This can be deployed across major Cardano DEXs, enriching key trading pairs such as ADA/BTC and stable-BTC. This added depth improves price discovery, reduces slippage, and fosters a more resilient trading environment for users and liquidity providers alike.

• Danogo also opens Cardano to a valuable new user segment. Capturing even 0.2% of Bitcoin’s circulating supply,around 4,000 BTC,would inject over $250 million USD into Cardano’s Total Value Locked (TVL). This not only boosts Cardano’s DeFi competitiveness but also brings in high-value assets that diversify and strengthen the ecosystem’s capital base.

• As BTC flows into Danogo, increased borrowing activity from the Float Pool generates yield for BTC suppliers, creating a positive feedback loop. Each action,supplying, borrowing, or trading,drives protocol fees that benefit stake pool operators, DEX LPs, and governance treasuries. This dynamic supports a sustainable, self-reinforcing ecosystem where user activity translates into ecosystem growth and long-term value capture for all participants.

• Lastly, a deep BTC Float Pool enables the launch of advanced financial modules on Cardano, including BTC perpetuals, options, and decentralized BTC‑backed stablecoins. With flexible BTC liquidity, Danogo can support leverage trading across BTC/ADA and stable‑BTC pairs, providing tools for both directional speculation and risk management. These innovations establish the foundation for a BTC-native derivatives market on Cardano, drawing in power users and developers seeking programmable, capital-efficient DeFi solutions rooted in Bitcoin liquidity.

The Danogo proposal will deliver a fully operational DeFi platform that enables Bitcoin (BTC) holders to seamlessly stake, lend, and earn yield on Cardano via a one-click user interface. Below is the month-by-month breakdown of our development milestones over a 5-month timeline:

• Milestone 1: Design Phase (Month 1)

During this phase, the team will finalize the overall technical architecture of the Danogo platform, including the smart contract flow, Float Pool mechanics, and the backend logic required for cross-chain interaction. Simultaneously, front-end wireframes and UI flows will be developed to shape the one-click staking experience. This month will also involve planning and design for backend components, smart contracts to manage locked BTC.

Outcome for Community: A clearly scoped, user-friendly architecture ready for build; initial UI/UX preview to gather early community feedback.

• Milestone 2: Development Phase (Month 2–3)

In this stage, the Danogo development team will deploy the core smart contracts to Cardano Testnet, covering locked BTC management, and the supply of BTC to the Float Lending Pool. The front-end interface will be built to provide users with an intuitive dashboard for staking BTC, monitoring yields, and interacting with the platform using their wallets.

Outcome for Community: A functional MVP on Cardano Testnet allowing simulated BTC staking and yield flows via Danogo.

• Milestone 3: Smart Contract Audit (Month 4)

A third-party security audit will be conducted to validate the integrity of Danogo’s smart contracts, including those related to asset bridging, lending logic, and yield distribution. Any vulnerabilities will be addressed and fixed prior to mainnet deployment. An audit report will be published publicly to ensure transparency and trust.

Outcome for Community: Security-assured codebase with verified logic for safe and transparent BTC DeFi participation.

• Milestone 4: Launch & Community Marketing (Month 5)

Once the audit is completed, Danogo will be deployed on Cardano Mainnet. This phase includes the release of demo videos, walkthroughs, and documentation to educate both BTC and Cardano communities. A targeted outreach and marketing campaign will be launched to attract early users and liquidity providers to the platform.

Outcome for Community: A production-ready DeFi platform enabling BTC staking and lending on Cardano with full visibility and open participation. Community receives access to new yield opportunities, expanded DeFi liquidity, and increased staking rewards through transaction-driven protocol fees.

The total budget for this proposal is 400,000 ADA, equivalent to approximately $300,000 USD, allocated to support the full-cycle development and deployment of the Danogo BTC DeFi Liquidity Platform on Cardano. This includes smart contract engineering, frontend development, security audits, community onboarding, and post-launch maintenance:

1. (Human Resource) Technical Architecture, Smart Contract Development, and Infrastructure

Explanation: This consolidated allocation covers the end-to-end technical implementation of the Danogo platform. It includes the architecture and development of smart contracts for locked BTC management, secure backend logic for yield optimization. It also funds the engineering of backend APIs, infrastructure setup, and on-chain lending logic needed to deliver a fully functional, scalable BTC DeFi solution. This category ensures Cardano compatibility, low-fee efficiency, and composability with existing protocols.

Budget: 210,000 ADA (approximately $157,500 USD). This allocation supports a cross-functional tech team (blockchain engineers, backend developers, and infrastructure leads) over a 4–6 month development window.

2. Smart Contract Security Audit

Explanation: To ensure platform security, a third-party audit will be conducted to assess the smart contracts managing BTC staking, and DeFi lending integrations. The audit will review logic integrity, vulnerability exposure, eUTxO modeling, and contract composability. A final report will be published to foster community trust.

Budget: 50,000 ADA (approximately $37,500 USD). This supports an audit engagement with an external security firm over a 4–6 week review period.

3. Community Governance, Marketing, Support, and Project Delivery

Explanation:This budget supports all community-facing, outreach, and operational aspects of the project to ensure adoption, education, and delivery accountability. It includes the creation of multilingual documentation, tutorials, and explainer content to help both technical and non-technical users interact with the platform. Community management efforts will include setting up and moderating real-time support channels (e.g., Discord, Telegram), onboarding early users, and guiding them through BTC staking on Cardano. To drive awareness and momentum, the marketing strategy will incorporate social media campaigns, influencer AMAs, educational bounties, and targeted content aimed at BTC holders unfamiliar with Cardano’s DeFi ecosystem. In parallel, a dedicated project manager will oversee internal timelines, track progress against milestones, and deliver transparent updates to the Cardano community through Catalyst. This comprehensive approach ensures strong user engagement, high-quality execution, and full alignment with decentralized governance principles.

Budget: 84,000 ADA (approximately $63,000 USD). This supports marketing staff, content creators, community leads, and a dedicated project manager.

4. Legal

Explanation: Ensuring compliance with Cardano’s ecosystem standards and community expectations requires legal oversight. This includes consulting legal counsel to review the platform architecture, establish agreements with auditors and custodians, and verify that all public documentation aligns with transparency requirements. Legal support will also address open-source licensing and data protection standards. This is critical for building community trust and safeguarding the proposal’s integrity.

Budget: 56,000 ADA (approximately $42,000 USD). This allocation reflects the significant effort needed to address compliance, draft agreements, and review documentation for community dissemination.

To successfully deliver the milestones outlined in this proposal within a 5-month timeframe, the following team composition is planned:

• 2 Smart Contract Developers – responsible for writing and deploying the smart contracts

• 2 Backend Developers – focused on developing the infrastructure to handle indexer, transaction builder, interaction with the Float Pool.

• 1 Front-End Developers – tasked with building the user interface for the one-click staking experience, wallet connectivity, yield tracking dashboard, and staking/trading modules.

• 1 Quality Control (QC) Engineer – responsible for testing smart contract logic, UI interactions, and end-to-end flows to ensure platform stability and performance.

• 1 Product Owner – oversees roadmap execution, milestone tracking, and cross-functional alignment to ensure on-time delivery and adherence to the project vision.

• 1 Technical Architect – provides system-level oversight, ensures secure and scalable infrastructure, and supports design decisions across both the Cardano and BTC-facing components.

With this team of 8 dedicated members, the full scope of deliverables,including design, development, audit, and launch,will be completed in 5 months, with each phase running according to the project timeline outlined earlier.

Proven traction – Danogo currently secures 4 million ADA+ TVL on main‑net.

Live products – Danogo has already shipped

• Staking Bond (fixed‑term yield),
• Bond DEX (secondary trading), and
• Yield Aggregator (support to supply collaterals, borrow and swap in single transaction).

Has just completed two public test‑net phases for our Fixed‑Rate Lending module, processing 4000+ transactions.

Danogo core team – over 10 years working together

• Mai Thanh Binh – Team Lead

With an MSc in Computational Finance from Carnegie Mellon University and a background as a former Fixed Income Trader, brings over 10 years of expertise in financial systems to the Cardano ecosystem. As Danogo’s founder, has focused on mimicking traditional finance (TradFi) structures in DeFi, bridging the knowledge gap for retail TradFi users by designing intuitive, composable smart contracts. This expertise ensures the proposal’s DeFi solutions, like lending and interest rate swaps, are accessible and aligned with Cardano’s vision for a robust financial ecosystem. LinkedIn Profile: https://www.linkedin.com/in/binh-mai-6b572493/

• Nguyen Chi Thuc – Technical Expert

A Computer Science graduate from Tomsk Polytechnic University with over 10 years of software development experience, specializes in blockchain and smart contract engineering. Has architected EUTxO-optimized smart contracts for Cardano DeFi applications, focusing on technical robustness, composability, and scalability. Proficiency in Plutus V3 and collaboration with developers to ensure the technical architecture of the six contracts is secure, efficient, and developer-friendly, meeting the proposal’s rigorous technical requirements. LinkedIn Profile: https://www.linkedin.com/in/thucnc/

• Do Tran Linh – Product Specialist

Holding a Master’s in Management from Audencia Business School, brings over 10 years of experience in product ideation and ownership, product ownership use case, product and project development with a focus on user-centric DeFi solutions. Has driven product development for composable dApp frameworks, identifying use cases like governance-driven lending and leveraged trading. Through community engagement, has refined product strategies to enhance usability and adoption, ensuring the smart contracts are practical and aligned with Cardano’s ecosystem needs. LinkedIn Profile: https://www.linkedin.com/in/tran-linh-do-54536660/

In addition, the team has partnered and established a great relationship with Anastasia Labs, renowned for their expertise in auditing Cardano smart contracts. This firm brings extensive experience in code review, vulnerability assessment, and EUTxO-specific validation, ensuring the delivery of secure, composable, and community-trusted contracts. The combination of the team’s expertise in finance, technical architecture, and product development with the auditor's rigorous oversight guarantees the successful execution of this proposal.

• After its initial development, the Danogo DeFi Hub will thrive through a robust, community-driven, and user-focused sustainability model that ensures long-term growth and alignment with Cardano’s vision of a decentralized global financial system.

• Through grants and incentives offered by Cardano’s ecosystem, developers will be encouraged to create complementary DeFi tools and applications, expanding Danogo’s functionality and deepening its integration within the broader Cardano ecosystem.

• The platform’s open-source codebase will empower Cardano developers worldwide to contribute enhancements, integrate emerging DeFi protocols, and maintain compatibility with Cardano’s evolving technological infrastructure, fostering continuous innovation.

• Security and transparency will remain paramount, with regular software updates, rigorous security audits, and open communication channels designed to maintain user trust and safeguard assets.

• A community-led governance framework will guide critical decisions, such as platform upgrades and resource allocation, utilizing a portion of the fees generated from the lending protocol to fund ongoing operations and development.

• To support users, dedicated community forums, social media channels, and other interactive platforms will provide comprehensive, real-time assistance, ensuring the intuitive one-click staking and lending experience remains seamless, reliable, and accessible to both novice and experienced users.

• This multifaceted approach ensures that Danogo remains a vibrant, innovative, and inclusive platform, fully supported by the Cardano community and committed to advancing the principles of decentralized finance on a global scale.

• The Danogo proposal has gained meaningful traction across the Cardano ecosystem due to its clear alignment with the community’s priorities: simplification, cross-chain liquidity, and ecosystem growth. At its core, Danogo offers a streamlined way to onboard BTC into Cardano DeFi through a one-click, user-friendly interface, eliminating the typical friction seen in cross-chain interactions. This simplification resonates deeply within community discussions, especially in light of Cardano’s Voltaire phase, which emphasizes usability, decentralization, and inclusive governance.

• On social channels, forums, and developer groups, there is strong support for proposals that unlock Bitcoin’s liquidity in a way that is transparent, accessible, and composable. Many in the community have specifically pointed to the need for easier BTC integration, citing Danogo’s automated BTC staking and lending system as a practical, high-impact solution. The ability to convert BTC into on-chain activity through staking, lending, and trading has been welcomed as a much-needed liquidity gateway that aligns with community goals of growing Cardano’s Total Value Locked (TVL) and DEX activity.

• Moreover, the proposal’s second-order effects,such as enabling BTC perpetuals and margin trading on BTC/ADA and BTC/stable pairs,have been highlighted as major drivers of ecosystem utility. These mechanisms increase transaction volume, liquidity flow, and protocol usage, all of which translate into higher fee generation. Importantly, this fee activity is routed back to ADA staking pools and governance treasuries, a model that is frequently cited by the community as critical for sustainable DeFi growth and decentralization.

• Developer groups have also expressed interest in supporting open-source solutions that reduce technical debt and lower the barrier to entry for cross-chain DeFi builders. Danogo’s design reflects this spirit of composability and clarity, which community governance circles increasingly prioritize in funding and proposal evaluations.

• While some discussions raise caution around reliance on wrapped assets, the broader consensus supports responsible integration of BTC-backed liquidity,especially when paired with strong UX, on-chain transparency, and economic alignment with Cardano’s staking model. Danogo’s proposal addresses all of these, making it not just technically sound, but community-approved in both vision and execution.

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