Create RFP-005 for Private Stablecoin Development

RFPs/RFP-005-private-stablecoin.md

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+---
+id: RFP-005
+title: Private Stablecoin
+tier: L
+funding: $XXXXX
+status: open
+category: Applications & Integrations
+---
+
+
+# RFP-005 — Private Stablecoin
+
+## 🧭 Overview
+
+Design and implement a stablecoin that operates natively within the Logos
+shielded ecosystem, providing a stable, private unit of account for payments,
+DeFi, and everyday transactions. Individual user balances and transfers must
+remain fully confidential while the reserves and minting mechanism remain
+auditable for solvency.
+
+A private stablecoin is essential for making the Logos ecosystem usable for
+real-world economic activity. Without a stable medium of exchange, users are
+forced to hold only volatile assets, limiting the ecosystem to speculation
+rather than enabling private payments, payroll, commerce, and composable
+DeFi.
+
+The ideal team has deep experience in stablecoin mechanism design,
+ZK-based auditability, and the intersection of regulatory compliance
+with user privacy.
+
+## 🔥 Why This Matters
+
+Stablecoins are the backbone of every successful blockchain ecosystem.
+Berachain launched with a native stablecoin (HONEY) at its core economic
+loop. Base's explosive growth was heavily accelerated by Coinbase's native,
+fee-free USDC integration, which made the chain immediately useful for
+real-value transfers.
+
+For a privacy L1, the stablecoin is even more critical. Without one, users
+must expose themselves to native-asset volatility for every private
+transaction, or worse, exit to transparent chains to access stable value —
+destroying their privacy. A shielded stablecoin enables truly private
+payments, private payroll, and private DeFi — use cases that are impossible
+on transparent chains and represent the core value proposition of the Logos
+ecosystem.
+
+Critically, the stablecoin must balance privacy with trust: while individual
+balances and transfers are confidential, the reserves backing the stablecoin
+should be provably solvent via ZK proofs or periodic attestations, ensuring
+users can trust the peg without sacrificing their privacy.
+
+## ✅ Scope of Work
+
+### Hard Requirements
+
+#### Functionality
+1. Implement a stablecoin token that operates entirely within the Logos
+   shielded pool, with all transfers being confidential by default.
+2. Implement a minting mechanism with clearly defined collateral or
+   reserve backing (e.g., over-collateralized by bridged assets, or
+   backed by a fiat-reserve model with attestations).
+3. Implement a redemption mechanism allowing users to burn stablecoins
+   to reclaim underlying collateral.
+4. Provide a ZK-based proof-of-solvency mechanism that allows anyone
+   to verify the stablecoin is fully backed without revealing individual
+   positions or reserve composition details.
+5. Implement a price oracle integration (or oracle-free mechanism) for
+   maintaining the peg.
+
+#### Security
+1. Include liquidation mechanisms (if over-collateralized) that operate
+   without revealing the positions being liquidated.
+2. Include an emergency pause mechanism for minting and redemptions.
+3. Implement governance controls for adjusting collateral parameters
+   (e.g., collateral ratios, accepted collateral types).
+
+#### Usability
+1. Provide a minimal front-end UI for minting, redeeming, and
+   transferring the stablecoin.
+2. Provide a public solvency dashboard showing aggregate reserve
+   health without revealing individual positions.
+
+### Soft Requirements
+
+1. Support for multiple collateral types (e.g., bridged ETH, bridged
+   USDC, native Logos token).
+2. Integration with the Logos DEX (RFP-004) for immediate trading pair
+   availability.
+3. Exploration of algorithmic stabilization mechanisms as a complement
+   to collateral backing.
+4. Support for privacy-preserving compliance proofs (e.g., a user can
+   prove their stablecoin holdings are below a threshold without
+   revealing the exact amount).
+
+## 👤 Recommended Team Profile
+
+Team experienced with:
+
+- Stablecoin mechanism design (collateralized, algorithmic, or hybrid)
+- Zero-knowledge proof systems and ZK auditability
+- Oracle integration and price feed security
+- DeFi smart contract development and security
+- Monetary policy and economic modeling
+- Front-end development for DeFi applications
+
+## ⏱ Timeline Expectations
+
+Estimated duration: **12–18 weeks**
+
+
+## 🌍 Open Source Requirement
+
+All code must be released under the **MIT+Apache2.0 dual License**.
+
+
+## Resources
+
+- [Logos Documentation](https://github.com/logos-co/logos-docs)
+- [Logos Blockchain Node Quickstart](https://github.com/logos-co/logos-docs/blob/main/docs/blockchain/quickstart-guide-for-the-logos-blockchain-node.md)
+- TODO: LEE official doc
+- TODO: Shielded asset specification
+- TODO: Oracle integration guide
+
+
+## ✏️ How to Apply
+
+👉 Submit a proposal using the Issue form:
+
+**[Submit Proposal](https://github.com/logos-co/rfp/issues/new?template=proposal.yml)**
+
+We typically respond within **14 days**. For clarification questions,
+please use **Discussions**.