diff --git a/README.md b/README.md
index aaa7587..8e3de6f 100644
--- a/README.md
+++ b/README.md
@@ -34,35 +34,39 @@ npm install
 
 # 2. Set up environment
 cp .env.example .env
-# Edit .env with your values (see docs/SETUP-INFRASTRUCTURE.md)
+# Edit .env with your values
 
-# 3. Create required directories
+# 3. Create public directory
 mkdir -p frontend/public
 
-# 4. Start with Docker Compose
+# 4. Start services
 docker-compose up -d --build
 
-# 6. Initialize database (first time only)
+# 5. Initialize database (first time only)
 docker-compose exec backend npx prisma db push
 
-# 7. Deploy Solana program (optional, for token features)
-cd anchor-program
-anchor deploy
+# 6. Configure Caddy (see docs/CADDY-CONFIG.md)
+# Services expose ports 3000 (frontend) and 3001 (backend) on localhost
 ```
 
+See `docs/CADDY-CONFIG.md` for reverse proxy setup.
+
 ## Project Structure
 
 ```
 coop-credits/
-├── anchor-program/     # Solana Anchor program for $COOP token
-├── backend/           # Express API server
-├── frontend/          # Next.js dashboard
-├── shared/            # Shared types and utilities
-├── docker/            # Docker configurations
-├── deployment/        # Deployment scripts
-└── docker-compose.yml # Full stack orchestration
+├── anchor-program/          # Solana Anchor program for $COOP token
+├── backend/                 # Express API server
+├── frontend/                # Next.js dashboard
+├── shared/                  # Shared types and utilities
+├── docs/                    # Documentation
+│   └── CADDY-CONFIG.md     # Reverse proxy setup
+├── docker-compose.yml       # Docker orchestration (no nginx)
+└── .env.example            # Environment template
 ```
 
+**Note:** No internal reverse proxy. Use Caddy/Nginx/Traefik externally.
+
 ## User Flow
 
 1. **Login** → User visits coop.hobokenchicken.com, authenticates with Plex
diff --git a/docker-compose.yml b/docker-compose.yml
index 16d1d59..8cefd53 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -60,7 +60,7 @@ services:
       - OVERSEER_API_KEY=${OVERSEER_API_KEY}
       - ENCRYPTION_KEY=${ENCRYPTION_KEY}
     ports:
-      - "3001:3001"
+      - "127.0.0.1:3001:3001"  # Localhost only, Caddy proxies to this
     depends_on:
       postgres:
         condition: service_healthy
@@ -75,38 +75,23 @@ services:
       context: .
       dockerfile: frontend/Dockerfile
       args:
-        - NEXT_PUBLIC_API_URL=http://localhost:3001
+        - NEXT_PUBLIC_API_URL=${API_URL:-http://localhost:3001}
         - NEXT_PUBLIC_SOLANA_NETWORK=devnet
         - NEXT_PUBLIC_SOLANA_RPC_URL=https://api.devnet.solana.com
     container_name: coop-frontend
     environment:
-      - NEXT_PUBLIC_API_URL=http://localhost:3001
+      - NODE_ENV=production
+      - NEXT_PUBLIC_API_URL=${API_URL:-http://localhost:3001}
       - NEXT_PUBLIC_SOLANA_NETWORK=devnet
       - NEXT_PUBLIC_SOLANA_RPC_URL=https://api.devnet.solana.com
     ports:
-      - "3000:3000"
+      - "127.0.0.1:3000:3000"  # Localhost only, Caddy proxies to this
     depends_on:
       - backend
     networks:
       - coop-network
     restart: unless-stopped
 
-  nginx:
-    image: nginx:alpine
-    container_name: coop-nginx
-    ports:
-      - "80:80"
-    volumes:
-      - ./docker/nginx/nginx.conf:/etc/nginx/nginx.conf:ro
-    depends_on:
-      frontend:
-        condition: service_started
-      backend:
-        condition: service_healthy
-    networks:
-      - coop-network
-    restart: unless-stopped
-
 volumes:
   postgres_data:
   redis_data:
diff --git a/docs/CADDY-CONFIG.md b/docs/CADDY-CONFIG.md
new file mode 100644
index 0000000..2e78d0b
--- /dev/null
+++ b/docs/CADDY-CONFIG.md
@@ -0,0 +1,50 @@
+# Caddy Configuration
+
+Caddy handles SSL termination and routes to the application services.
+
+## Caddyfile Example
+
+```caddy
+coop.hobokenchicken.com {
+    # Frontend (Next.js)
+    handle_path /* {
+        reverse_proxy localhost:3000
+    }
+
+    # API routes
+    handle_path /api/* {
+        reverse_proxy localhost:3001
+    }
+
+    # Webhooks
+    handle_path /webhooks/* {
+        reverse_proxy localhost:3001
+    }
+
+    # WebSocket support
+    handle_path /socket.io/* {
+        reverse_proxy localhost:3001
+    }
+}
+```
+
+## Docker Compose (no nginx)
+
+Services bind to localhost only (`127.0.0.1`):
+
+- **Frontend**: `127.0.0.1:3000` 
+- **Backend**: `127.0.0.1:3001`
+- **Postgres**: `5432` (internal only)
+- **Redis**: `6379` (internal only)
+
+## Start Stack
+
+```bash
+# Start services
+docker-compose up -d
+
+# Verify
+curl http://localhost:3001/health
+```
+
+Caddy automatically provisions SSL and routes traffic.