Who says bigger is always better? For the latest Midnight hackathon, the challenge was to think of miniature DApps with maximum impact. The results were a huge success. Instead of sprawling, complex (and sometimes unfinished) applications, developers were tasked with building a single, polished prototype.
The focus was on developing clever ideas, creative execution, and exploring the playful side of Midnight.
With a two-month timeline, builders had space to think, experiment, and perfect their projects. The goal was to prove that a single, well-designed feature provides the perfect foundation to build outward. And the results showed, judges were so impressed with the winning projects they wanted to see more features and functionality.
Midnight functionality in focus
The hackathon’s focus on small prototypes perfectly highlighted Midnight’s core capabilities in action:
- Zero-knowledge proofs: Winning projects used ZK proofs for both identity and finance. zkBadge issued verifiable credentials, like proof of age, without revealing the underlying personal data, while Midnight Bank used them to execute private financial transactions.
- Private and public state management: Submissions demonstrated sophisticated state management. LucentLabs balanced a public protocol state with private user collateral to enable shielded automated liquidations. Whereas zkBadge kept personal user data entirely off-chain, recording only a simple, public 'verified' status for other DApps to interact with.
- Advanced private computation: Projects also moved beyond simple privacy into private computation. Midnight Bank’s multi-party authorization feature, for instance, allowed users to privately co-sign transactions, showcasing complex interactive logic on confidential data.
The winning projects
Judges evaluated submissions based on creativity, technical execution, and the demonstration of Midnight’s technology. The following projects were selected for their quality and innovative approaches.
#1 – LucentLabs
LucentLabs earned the top prize with a sophisticated solution for a billion dollar question: how to build a private solution for an overcollateralized stablecoin. The project was designed for institutional-grade finance by effectively balancing transaction privacy with regulatory compliance.
How it works: The protocol’s fully shielded design ensures that all on-chain activities, like minting and staking, remain confidential. Access is granted after a one-time, off-chain identity verification (KYC), creating a compliant environment without exposing user data on the blockchain. A key innovation is the system for automated liquidations, which maintains protocol stability even within the private, shielded environment, which is a significant technical achievement.
Judges celebrated the project for its technical depth and its direct application of zero-knowledge principles to a complex, real-world financial problem.
- Watch the presentation
- The code is available on GitHub
#2 – Midnight Bank
Midnight Bank secured second place with a private banking DApp that serves as an excellent demonstration of Midnight's core privacy patterns: prove, hide, compute, and reveal.
How it works: Users can create shared accounts with encrypted balances protected by a PIN. Standard banking operations like deposits, withdrawals, and transfers are executed with complete confidentiality, leaving no public record of the transaction details. The DApp also includes a multi-party authorization feature for transactions requiring a co-signer, all conducted privately. Paired with selective disclosure capabilities, it allows users to share specific information for compliance when needed.
The project was highlighted as a strong foundational implementation, ready to be expanded with more features.
By delivering a strong core implementation, the project serves as a solid foundation that can be expanded with additional features, highlighting the value of building extensible MVPs.
- Watch the presentation
- The code is available on GitHub
#3 – Davyking
zkBadge
Taking third place is zkBadge by Davyking, a working prototype for a privacy-preserving identity and access control system.
How it works: The system allows a trusted issuer to verify a user's credentials off-chain, such as using an ID to confirm age. The issuer then uses a ZK circuit to generate a "zkBadge." This digital badge attests to a specific claim (e.g., "is over 18") without revealing the underlying personal data used for verification.
Only a simple "verified" status is recorded on-chain for the user's wallet. This efficient, lightweight approach keeps sensitive data off the blockchain while enabling verified users to access specific DApps or smart contracts. The project was noted for its strong technical foundation and potential for broader reputation systems.
- Watch the presentation
- The code is available on GitHub
Advice for future builders
The winners demonstrated how focusing on a single, core feature and polishing it to perfection is a path to victory. A strong, focused MVP is more impressive and provides a better foundation than a sprawling, unfinished concept. Use the Midnight documentation and when you have technical questions, head ask them in the Developer Forum.
Some submissions featured excellent user interfaces, even without fully developed smart contracts. If that's you, keep learning and building. A polished UI is a huge head start, and several of these projects had the potential to become strong products. Consider pairing up with other developers with complementary skills who can help bring your vision to life on-chain.
What's next?
The momentum from this hackathon is just the beginning. There are more exciting opportunities for builders are just around the corner:
- Get ready for the next global hackathon with MLH, taking place from September 26-28.
- Shortly after, Midnight is sponsoring a track in Webisoft’s Web3fast hackathon during the first week of October.
Keep an eye on the Midnight hackathons page for upcoming registration links, and be sure to follow Midnight Network on X for the latest on events, participants, and winning teams.