diff --git a/ChangeLog.md b/ChangeLog.md
new file mode 100644
--- /dev/null
+++ b/ChangeLog.md
@@ -0,0 +1,7 @@
+# Changelog for free-category
+
+## Version 0.0.1.0
+- free category (concrete and condensity transformed)
+- free arrows (concrete and condensity transformed)
+
+## Unreleased changes
diff --git a/LICENSE b/LICENSE
new file mode 100644
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,373 @@
+Mozilla Public License Version 2.0
+==================================
+
+1. Definitions
+--------------
+
+1.1. "Contributor"
+    means each individual or legal entity that creates, contributes to
+    the creation of, or owns Covered Software.
+
+1.2. "Contributor Version"
+    means the combination of the Contributions of others (if any) used
+    by a Contributor and that particular Contributor's Contribution.
+
+1.3. "Contribution"
+    means Covered Software of a particular Contributor.
+
+1.4. "Covered Software"
+    means Source Code Form to which the initial Contributor has attached
+    the notice in Exhibit A, the Executable Form of such Source Code
+    Form, and Modifications of such Source Code Form, in each case
+    including portions thereof.
+
+1.5. "Incompatible With Secondary Licenses"
+    means
+
+    (a) that the initial Contributor has attached the notice described
+        in Exhibit B to the Covered Software; or
+
+    (b) that the Covered Software was made available under the terms of
+        version 1.1 or earlier of the License, but not also under the
+        terms of a Secondary License.
+
+1.6. "Executable Form"
+    means any form of the work other than Source Code Form.
+
+1.7. "Larger Work"
+    means a work that combines Covered Software with other material, in 
+    a separate file or files, that is not Covered Software.
+
+1.8. "License"
+    means this document.
+
+1.9. "Licensable"
+    means having the right to grant, to the maximum extent possible,
+    whether at the time of the initial grant or subsequently, any and
+    all of the rights conveyed by this License.
+
+1.10. "Modifications"
+    means any of the following:
+
+    (a) any file in Source Code Form that results from an addition to,
+        deletion from, or modification of the contents of Covered
+        Software; or
+
+    (b) any new file in Source Code Form that contains any Covered
+        Software.
+
+1.11. "Patent Claims" of a Contributor
+    means any patent claim(s), including without limitation, method,
+    process, and apparatus claims, in any patent Licensable by such
+    Contributor that would be infringed, but for the grant of the
+    License, by the making, using, selling, offering for sale, having
+    made, import, or transfer of either its Contributions or its
+    Contributor Version.
+
+1.12. "Secondary License"
+    means either the GNU General Public License, Version 2.0, the GNU
+    Lesser General Public License, Version 2.1, the GNU Affero General
+    Public License, Version 3.0, or any later versions of those
+    licenses.
+
+1.13. "Source Code Form"
+    means the form of the work preferred for making modifications.
+
+1.14. "You" (or "Your")
+    means an individual or a legal entity exercising rights under this
+    License. For legal entities, "You" includes any entity that
+    controls, is controlled by, or is under common control with You. For
+    purposes of this definition, "control" means (a) the power, direct
+    or indirect, to cause the direction or management of such entity,
+    whether by contract or otherwise, or (b) ownership of more than
+    fifty percent (50%) of the outstanding shares or beneficial
+    ownership of such entity.
+
+2. License Grants and Conditions
+--------------------------------
+
+2.1. Grants
+
+Each Contributor hereby grants You a world-wide, royalty-free,
+non-exclusive license:
+
+(a) under intellectual property rights (other than patent or trademark)
+    Licensable by such Contributor to use, reproduce, make available,
+    modify, display, perform, distribute, and otherwise exploit its
+    Contributions, either on an unmodified basis, with Modifications, or
+    as part of a Larger Work; and
+
+(b) under Patent Claims of such Contributor to make, use, sell, offer
+    for sale, have made, import, and otherwise transfer either its
+    Contributions or its Contributor Version.
+
+2.2. Effective Date
+
+The licenses granted in Section 2.1 with respect to any Contribution
+become effective for each Contribution on the date the Contributor first
+distributes such Contribution.
+
+2.3. Limitations on Grant Scope
+
+The licenses granted in this Section 2 are the only rights granted under
+this License. No additional rights or licenses will be implied from the
+distribution or licensing of Covered Software under this License.
+Notwithstanding Section 2.1(b) above, no patent license is granted by a
+Contributor:
+
+(a) for any code that a Contributor has removed from Covered Software;
+    or
+
+(b) for infringements caused by: (i) Your and any other third party's
+    modifications of Covered Software, or (ii) the combination of its
+    Contributions with other software (except as part of its Contributor
+    Version); or
+
+(c) under Patent Claims infringed by Covered Software in the absence of
+    its Contributions.
+
+This License does not grant any rights in the trademarks, service marks,
+or logos of any Contributor (except as may be necessary to comply with
+the notice requirements in Section 3.4).
+
+2.4. Subsequent Licenses
+
+No Contributor makes additional grants as a result of Your choice to
+distribute the Covered Software under a subsequent version of this
+License (see Section 10.2) or under the terms of a Secondary License (if
+permitted under the terms of Section 3.3).
+
+2.5. Representation
+
+Each Contributor represents that the Contributor believes its
+Contributions are its original creation(s) or it has sufficient rights
+to grant the rights to its Contributions conveyed by this License.
+
+2.6. Fair Use
+
+This License is not intended to limit any rights You have under
+applicable copyright doctrines of fair use, fair dealing, or other
+equivalents.
+
+2.7. Conditions
+
+Sections 3.1, 3.2, 3.3, and 3.4 are conditions of the licenses granted
+in Section 2.1.
+
+3. Responsibilities
+-------------------
+
+3.1. Distribution of Source Form
+
+All distribution of Covered Software in Source Code Form, including any
+Modifications that You create or to which You contribute, must be under
+the terms of this License. You must inform recipients that the Source
+Code Form of the Covered Software is governed by the terms of this
+License, and how they can obtain a copy of this License. You may not
+attempt to alter or restrict the recipients' rights in the Source Code
+Form.
+
+3.2. Distribution of Executable Form
+
+If You distribute Covered Software in Executable Form then:
+
+(a) such Covered Software must also be made available in Source Code
+    Form, as described in Section 3.1, and You must inform recipients of
+    the Executable Form how they can obtain a copy of such Source Code
+    Form by reasonable means in a timely manner, at a charge no more
+    than the cost of distribution to the recipient; and
+
+(b) You may distribute such Executable Form under the terms of this
+    License, or sublicense it under different terms, provided that the
+    license for the Executable Form does not attempt to limit or alter
+    the recipients' rights in the Source Code Form under this License.
+
+3.3. Distribution of a Larger Work
+
+You may create and distribute a Larger Work under terms of Your choice,
+provided that You also comply with the requirements of this License for
+the Covered Software. If the Larger Work is a combination of Covered
+Software with a work governed by one or more Secondary Licenses, and the
+Covered Software is not Incompatible With Secondary Licenses, this
+License permits You to additionally distribute such Covered Software
+under the terms of such Secondary License(s), so that the recipient of
+the Larger Work may, at their option, further distribute the Covered
+Software under the terms of either this License or such Secondary
+License(s).
+
+3.4. Notices
+
+You may not remove or alter the substance of any license notices
+(including copyright notices, patent notices, disclaimers of warranty,
+or limitations of liability) contained within the Source Code Form of
+the Covered Software, except that You may alter any license notices to
+the extent required to remedy known factual inaccuracies.
+
+3.5. Application of Additional Terms
+
+You may choose to offer, and to charge a fee for, warranty, support,
+indemnity or liability obligations to one or more recipients of Covered
+Software. However, You may do so only on Your own behalf, and not on
+behalf of any Contributor. You must make it absolutely clear that any
+such warranty, support, indemnity, or liability obligation is offered by
+You alone, and You hereby agree to indemnify every Contributor for any
+liability incurred by such Contributor as a result of warranty, support,
+indemnity or liability terms You offer. You may include additional
+disclaimers of warranty and limitations of liability specific to any
+jurisdiction.
+
+4. Inability to Comply Due to Statute or Regulation
+---------------------------------------------------
+
+If it is impossible for You to comply with any of the terms of this
+License with respect to some or all of the Covered Software due to
+statute, judicial order, or regulation then You must: (a) comply with
+the terms of this License to the maximum extent possible; and (b)
+describe the limitations and the code they affect. Such description must
+be placed in a text file included with all distributions of the Covered
+Software under this License. Except to the extent prohibited by statute
+or regulation, such description must be sufficiently detailed for a
+recipient of ordinary skill to be able to understand it.
+
+5. Termination
+--------------
+
+5.1. The rights granted under this License will terminate automatically
+if You fail to comply with any of its terms. However, if You become
+compliant, then the rights granted under this License from a particular
+Contributor are reinstated (a) provisionally, unless and until such
+Contributor explicitly and finally terminates Your grants, and (b) on an
+ongoing basis, if such Contributor fails to notify You of the
+non-compliance by some reasonable means prior to 60 days after You have
+come back into compliance. Moreover, Your grants from a particular
+Contributor are reinstated on an ongoing basis if such Contributor
+notifies You of the non-compliance by some reasonable means, this is the
+first time You have received notice of non-compliance with this License
+from such Contributor, and You become compliant prior to 30 days after
+Your receipt of the notice.
+
+5.2. If You initiate litigation against any entity by asserting a patent
+infringement claim (excluding declaratory judgment actions,
+counter-claims, and cross-claims) alleging that a Contributor Version
+directly or indirectly infringes any patent, then the rights granted to
+You by any and all Contributors for the Covered Software under Section
+2.1 of this License shall terminate.
+
+5.3. In the event of termination under Sections 5.1 or 5.2 above, all
+end user license agreements (excluding distributors and resellers) which
+have been validly granted by You or Your distributors under this License
+prior to termination shall survive termination.
+
+************************************************************************
+*                                                                      *
+*  6. Disclaimer of Warranty                                           *
+*  -------------------------                                           *
+*                                                                      *
+*  Covered Software is provided under this License on an "as is"       *
+*  basis, without warranty of any kind, either expressed, implied, or  *
+*  statutory, including, without limitation, warranties that the       *
+*  Covered Software is free of defects, merchantable, fit for a        *
+*  particular purpose or non-infringing. The entire risk as to the     *
+*  quality and performance of the Covered Software is with You.        *
+*  Should any Covered Software prove defective in any respect, You     *
+*  (not any Contributor) assume the cost of any necessary servicing,   *
+*  repair, or correction. This disclaimer of warranty constitutes an   *
+*  essential part of this License. No use of any Covered Software is   *
+*  authorized under this License except under this disclaimer.         *
+*                                                                      *
+************************************************************************
+
+************************************************************************
+*                                                                      *
+*  7. Limitation of Liability                                          *
+*  --------------------------                                          *
+*                                                                      *
+*  Under no circumstances and under no legal theory, whether tort      *
+*  (including negligence), contract, or otherwise, shall any           *
+*  Contributor, or anyone who distributes Covered Software as          *
+*  permitted above, be liable to You for any direct, indirect,         *
+*  special, incidental, or consequential damages of any character      *
+*  including, without limitation, damages for lost profits, loss of    *
+*  goodwill, work stoppage, computer failure or malfunction, or any    *
+*  and all other commercial damages or losses, even if such party      *
+*  shall have been informed of the possibility of such damages. This   *
+*  limitation of liability shall not apply to liability for death or   *
+*  personal injury resulting from such party's negligence to the       *
+*  extent applicable law prohibits such limitation. Some               *
+*  jurisdictions do not allow the exclusion or limitation of           *
+*  incidental or consequential damages, so this exclusion and          *
+*  limitation may not apply to You.                                    *
+*                                                                      *
+************************************************************************
+
+8. Litigation
+-------------
+
+Any litigation relating to this License may be brought only in the
+courts of a jurisdiction where the defendant maintains its principal
+place of business and such litigation shall be governed by laws of that
+jurisdiction, without reference to its conflict-of-law provisions.
+Nothing in this Section shall prevent a party's ability to bring
+cross-claims or counter-claims.
+
+9. Miscellaneous
+----------------
+
+This License represents the complete agreement concerning the subject
+matter hereof. If any provision of this License is held to be
+unenforceable, such provision shall be reformed only to the extent
+necessary to make it enforceable. Any law or regulation which provides
+that the language of a contract shall be construed against the drafter
+shall not be used to construe this License against a Contributor.
+
+10. Versions of the License
+---------------------------
+
+10.1. New Versions
+
+Mozilla Foundation is the license steward. Except as provided in Section
+10.3, no one other than the license steward has the right to modify or
+publish new versions of this License. Each version will be given a
+distinguishing version number.
+
+10.2. Effect of New Versions
+
+You may distribute the Covered Software under the terms of the version
+of the License under which You originally received the Covered Software,
+or under the terms of any subsequent version published by the license
+steward.
+
+10.3. Modified Versions
+
+If you create software not governed by this License, and you want to
+create a new license for such software, you may create and use a
+modified version of this License if you rename the license and remove
+any references to the name of the license steward (except to note that
+such modified license differs from this License).
+
+10.4. Distributing Source Code Form that is Incompatible With Secondary
+Licenses
+
+If You choose to distribute Source Code Form that is Incompatible With
+Secondary Licenses under the terms of this version of the License, the
+notice described in Exhibit B of this License must be attached.
+
+Exhibit A - Source Code Form License Notice
+-------------------------------------------
+
+  This Source Code Form is subject to the terms of the Mozilla Public
+  License, v. 2.0. If a copy of the MPL was not distributed with this
+  file, You can obtain one at http://mozilla.org/MPL/2.0/.
+
+If it is not possible or desirable to put the notice in a particular
+file, then You may include the notice in a location (such as a LICENSE
+file in a relevant directory) where a recipient would be likely to look
+for such a notice.
+
+You may add additional accurate notices of copyright ownership.
+
+Exhibit B - "Incompatible With Secondary Licenses" Notice
+---------------------------------------------------------
+
+  This Source Code Form is "Incompatible With Secondary Licenses", as
+  defined by the Mozilla Public License, v. 2.0.
diff --git a/README.md b/README.md
new file mode 100644
--- /dev/null
+++ b/README.md
@@ -0,0 +1,13 @@
+# Free Category
+[![Maintainer: coot](https://img.shields.io/badge/maintainer-coot-lightgrey.svg)](http://github.com/coot)
+[![Travis Build Status](https://travis-ci.org/coot/free-category.svg?branch=master)](https://travis-ci.org/coot/free-category)
+
+This package introduces variouos encodings of free categories in Haskell.
+
+Free categories are useful to model state machines in a simple yet type safe
+way and for that purpose `Kleisli` categroies are a very useful target which
+allows to include monadic computations.  Read more
+[here](https://coot.me/posts/finite-state-machines.html) on a simple example of
+a finite state machine encoded using a free category using a simple GADT.
+Another simple
+[example](https://github.com/coot/free-algebras/blob/master/examples/src/Control/Category/Free.hs).
diff --git a/Setup.hs b/Setup.hs
new file mode 100644
--- /dev/null
+++ b/Setup.hs
@@ -0,0 +1,2 @@
+import Distribution.Simple
+main = defaultMain
diff --git a/free-category.cabal b/free-category.cabal
new file mode 100644
--- /dev/null
+++ b/free-category.cabal
@@ -0,0 +1,58 @@
+name:           free-category
+version:        0.0.1.0
+synopsis:       Free category
+description:    Free categories
+category:       Algebra, Control, Monads, Category
+homepage:       https://github.com/coot/free-category#readme
+bug-reports:    https://github.com/coot/free-category/issues
+author:         Marcin Szamotulski
+maintainer:     profunctor@pm.me
+copyright:      (c) 2018 Marcin Szamotulski
+license:        MPL-2.0
+license-file:   LICENSE
+build-type:     Simple
+cabal-version:  >= 1.10
+extra-source-files:
+    ChangeLog.md
+    README.md
+
+source-repository head
+  type: git
+  location: https://github.com/coot/free-category
+
+library
+  exposed-modules:
+      Control.Arrow.Free
+      Control.Category.Free
+  other-modules:
+      Paths_free_category
+  hs-source-dirs:
+      src
+  default-extensions:
+    ConstraintKinds
+    DataKinds
+    DeriveFunctor
+    EmptyDataDecls
+    FlexibleInstances
+    FlexibleContexts
+    GADTs
+    KindSignatures
+    InstanceSigs
+    MultiParamTypeClasses
+    OverloadedStrings
+    PolyKinds
+    RankNTypes
+    ScopedTypeVariables
+    TupleSections
+    TypeApplications
+    TypeFamilies
+  build-depends:
+      base          >= 4.9 && <5
+    , free-algebras >= 0.0.6.0
+  ghc-options:
+    -Wall
+    -fwarn-incomplete-record-updates
+    -fwarn-incomplete-uni-patterns
+    -fwarn-redundant-constraints
+    -fwarn-deprecations
+  default-language: Haskell2010
diff --git a/src/Control/Arrow/Free.hs b/src/Control/Arrow/Free.hs
new file mode 100644
--- /dev/null
+++ b/src/Control/Arrow/Free.hs
@@ -0,0 +1,111 @@
+{-# LANGUAGE GADTs #-}
+module Control.Arrow.Free
+  ( -- * Free arrow
+    Arr (..)
+    -- * Free arrow (CPS style)
+  , A (..)
+  , fromA
+  , toA
+    -- * Free interface re-exports 
+  , FreeAlgebra2 (..)
+  , wrapFree2
+  , foldFree2
+  , hoistFree2
+  , joinFree2
+  , bindFree2
+  ) where
+
+import           Prelude hiding (id, (.))
+import           Control.Arrow (Arrow (..))
+import           Control.Category (Category (..))
+import           Control.Algebra.Free2
+  ( AlgebraType0
+  , AlgebraType
+  , FreeAlgebra2 (..)
+  , proof
+  , wrapFree2
+  , foldFree2
+  , hoistFree2
+  , hoistFreeH2
+  , joinFree2
+  , bindFree2
+  )
+
+data Arr f a b where
+  Id    :: Arr f a a
+  (:.:) :: f b c     -> Arr f a b -> Arr f a c
+  Arr   :: (b -> c)  -> Arr f a b -> Arr f a c
+  Prod  :: Arr f a b -> Arr f a c -> Arr f a (b, c)
+
+instance Category (Arr f) where
+  id = Id
+  Id         . f  = f
+  f          . Id = f
+  (f :.: g)  . h  = f :.: (g . h)
+  (Arr f g)  . h  = Arr f (g . h)
+  (Prod f g) . h  = Prod (f . h) (g . h)
+
+instance Arrow (Arr f) where
+  arr f     = Arr f Id
+  first bc  = Prod (bc . arr fst) (arr snd)
+  second bc = Prod (arr fst) (bc . arr snd)
+  ab *** xy = Prod (ab . arr fst) (xy . arr snd)
+  (&&&)     = Prod
+
+type instance AlgebraType0 Arr f = ()
+type instance AlgebraType  Arr c = Arrow c
+
+instance FreeAlgebra2 Arr where
+  liftFree2 = \fab -> fab :.: Id
+  {-# INLINE liftFree2 #-}
+
+  foldNatFree2 _   Id = id
+  foldNatFree2 fun (bc :.: ab) = fun bc . foldNatFree2 fun ab
+  foldNatFree2 fun (Arr f g)   = arr f  . foldNatFree2 fun g
+  foldNatFree2 fun (Prod f g)  = foldNatFree2 fun f &&& foldNatFree2 fun g
+  {-# INLINE foldNatFree2 #-}
+
+  codom2  = proof
+  forget2 = proof
+
+newtype A f a b
+  = A { runA :: forall r. Arrow r
+             => (forall x y. f x y -> r x y)
+             -> r a b
+      }
+
+-- |
+-- Isomorphism from @'Arr'@ to @'A'@, which is a specialisation of
+-- @'hoistFreeH2'@.
+toA :: Arr f a b -> A f a b
+toA = hoistFreeH2
+{-# INLINE toA #-}
+
+-- |
+-- Inverse of @'fromA'@, which also is a specialisatin of @'hoistFreeH2'@.
+fromA :: A f a b -> Arr f a b
+fromA = hoistFreeH2
+{-# INLINE fromA #-}
+
+instance Category (A f) where
+  id = A (const id)
+  A f . A g = A $ \k -> f k . g k
+
+instance Arrow (A f) where
+  arr f = A (const (arr f))
+  A f *** A g  = A $ \k -> f k *** g k
+  first  (A f) = A $ \k -> first (f k)
+  second (A f) = A $ \k -> second (f k)
+
+type instance AlgebraType0 A f = ()
+type instance AlgebraType  A c = Arrow c
+
+instance FreeAlgebra2 A where
+  liftFree2 = \fab -> A $ \k -> k fab
+  {-# INLINE liftFree2 #-}
+
+  foldNatFree2 fun (A f) = f fun
+  {-# INLINE foldNatFree2 #-}
+
+  codom2  = proof
+  forget2 = proof
diff --git a/src/Control/Category/Free.hs b/src/Control/Category/Free.hs
new file mode 100644
--- /dev/null
+++ b/src/Control/Category/Free.hs
@@ -0,0 +1,178 @@
+{-# LANGUAGE CPP                #-}
+{-# LANGUAGE StandaloneDeriving #-}
+module Control.Category.Free
+    ( -- * Free category
+      Cat (..)
+      -- * Free category (CPS style)
+    , C (..)
+    , toC
+    , fromC
+
+      -- * Free interface re-exports
+    , FreeAlgebra2 (..)
+    , wrapFree2
+    , foldFree2
+    , hoistFree2
+    , joinFree2
+    , bindFree2
+    )
+    where
+
+import           Prelude hiding (id, (.))
+import           Control.Category (Category (..))
+import           Control.Algebra.Free2
+  ( AlgebraType0
+  , AlgebraType
+  , FreeAlgebra2 (..)
+  , proof
+  , wrapFree2
+  , foldFree2
+  , hoistFree2
+  , hoistFreeH2
+  , joinFree2
+  , bindFree2
+  )
+import           Control.Arrow (Arrow (..), ArrowZero (..), ArrowChoice (..))
+#if __GLASGOW_HASKELL__ < 804
+import           Data.Monoid (Monoid (..))
+import           Data.Semigroup (Semigroup (..))
+#endif
+import           Data.Monoid.MSet (MSet (..))
+import           Data.Semigroup.SSet (SSet (..))
+
+-- |
+-- Free category encoded as a recursive data type, in a simlar way as
+-- @'Control.Monad.Free.Free'@.  You can use @'FreeAlgebra2'@ class instance:
+--
+-- prop> liftFree2    @Cat :: f a b -> Cat f ab
+-- prop> foldNatFree2 @Cat :: Category d => (forall x y. f x y -> d x y) -> Cat f a b -> d a b
+--
+-- The same performance concerns that apply to @'Control.Monad.Free.Free'@
+-- apply to this encoding of a free category.
+data Cat :: (* -> * -> *) -> * -> * -> * where
+  Id    :: Cat f a a
+  (:.:) :: f b c -> Cat f a b -> Cat f a c
+
+instance Category (Cat f) where
+  id = Id
+  Id         . ys = ys
+  (x :.: xs) . ys = x :.: (xs . ys)
+
+infixr 9 :.:
+
+instance Arrow f => Arrow (Cat f) where
+  arr ab                          = arr ab :.: Id
+
+  Id *** Id                       = Id
+  Id *** (fxb :.: cax)            = (arr id *** fxb) :.: (Id *** cax)
+  (fxb :.: cax) *** Id            = (fxb *** arr id) :.: (cax *** Id)
+  (fxb :.: cax) *** (fyb :.: cay) = (fxb *** fyb) :.: (cax *** cay)
+
+instance ArrowZero f => ArrowZero (Cat f) where
+  zeroArrow = zeroArrow :.: Id
+
+instance ArrowChoice f => ArrowChoice (Cat f) where
+  Id +++ Id                       = Id
+  Id +++ (fxb :.: cax)            = (arr id +++ fxb) :.: (Id +++ cax)
+  (fxb :.: cax) +++ Id            = (fxb +++ arr id) :.: (cax +++ Id)
+  (fxb :.: cax) +++ (fyb :.: cay) = (fxb +++ fyb) :.: (cax +++ cay)
+
+instance Semigroup (Cat f o o) where
+  f <> g = g . f
+
+instance Monoid (Cat f o o) where
+  mempty = Id
+#if __GLASGOW_HASKELL__ < 804
+  mappend = (<>)
+#endif
+
+instance SSet (Cat f o o) (Cat f a o) where
+  act = (.)
+
+instance MSet (Cat f o o) (Cat f a o) where
+#if __GLASGOW_HASKELL__ < 804
+  mact = (.)
+#endif
+
+type instance AlgebraType0 Cat f = ()
+type instance AlgebraType  Cat c = Category c
+
+instance FreeAlgebra2 Cat where
+  liftFree2 = \fab -> fab :.: Id
+  {-# INLINE liftFree2 #-}
+
+  foldNatFree2 _   Id          = id
+  foldNatFree2 fun (bc :.: ab) = fun bc . foldNatFree2 fun ab
+  {-# INLINE foldNatFree2 #-}
+
+  codom2  = proof
+  forget2 = proof
+
+-- |
+-- CPS style encoded free category; one can use @'FreeAlgebra2'@ class
+-- instance:
+--
+-- prop> liftFree2    @C :: f a b -> C f ab
+-- prop> foldNatFree2 @C :: Category d => (forall x y. f x y -> d x y) -> C f a b -> d a b
+newtype C f a b
+  = C { runC :: forall r. Category r
+             => (forall x y. f x y -> r x y)
+             -> r a b
+      }
+
+instance Category (C f) where
+  id = C (const id)
+  C bc . C ab = C $ \k -> bc k . ab k
+
+-- |
+-- Isomorphism from @'Cat'@ to @'C'@, which is a specialisation of
+-- @'hoistFreeH2'@.
+toC :: Cat f a b -> C f a b
+toC = hoistFreeH2
+{-# INLINE toC #-}
+
+-- |
+-- Inverse of @'fromC'@, which also is a specialisatin of @'hoistFreeH2'@.
+fromC :: C f a b -> Cat f a b
+fromC = hoistFreeH2
+{-# INLINE fromC #-}
+
+type instance AlgebraType0 C f = ()
+type instance AlgebraType  C c = Category c
+
+instance FreeAlgebra2 C where
+  liftFree2 = \fab -> C $ \k -> k fab
+  {-# INLINE liftFree2 #-}
+
+  foldNatFree2 fun (C f) = f fun
+  {-# INLINE foldNatFree2 #-}
+
+  codom2  = proof
+  forget2 = proof
+
+instance Arrow f => Arrow (C f) where
+  arr ab = C $ \k -> k (arr ab)
+  C c1 *** C c2  = C $ \k -> k (c1 id *** c2 id)
+
+instance ArrowZero f => ArrowZero (C f) where
+  zeroArrow = C $ \k -> k zeroArrow
+
+instance ArrowChoice f => ArrowChoice (C f) where
+  C c1 +++ C c2  = C $ \k -> k (c1 id +++ c2 id)
+
+instance Semigroup (C f o o) where
+  f <> g = f . g
+
+instance Monoid (C f o o) where
+  mempty = id
+#if __GLASGOW_HASKELL__ < 804
+  mappend = (<>)
+#endif
+
+instance SSet (C f o o) (C f a o) where
+  act = (.)
+
+instance MSet (C f o o) (C f a o) where
+#if __GLASGOW_HASKELL__ < 804
+  mact = (.)
+#endif
