Enables trust-minimized peer-to-peer swaps of shielded assets without revealing details to a third party or the public, bootstrapping early, decentralized private liquidity.
FURPS+
Ai generated
This section was generated by an LLM and has not yet been human-reviewed.
Functionality
- Enable trust-minimized P2P swaps of shielded assets
- Ensure atomicity (either both sides complete or neither does)
- Support cross-chain swap capability
- Provide trustless escrow without intermediary knowledge
- Enable OTC trading for large deals
+ (Privacy, Anonymity, Censorship-Resistance)
- Hide counterparties (neither party’s identity or address revealed)
- Conceal amounts (trade sizes not publicly visible)
- Protect asset types being swapped
- Prevent timing analysis (swap negotiations and execution not linkable)
Demand Validation
Potential Users: Early adopters, OTC traders, cross-chain users, arbitrageurs
Use Cases:
- Cross-chain swaps: Exchange assets between privacy L1 and other chains
- OTC trading: Large trades without market impact or public visibility
- P2P exchange: Direct user-to-user trading without DEX
- Private arbitrage: Exploit price differences across venues privately
- Trustless escrow: Buy/sell with strangers without intermediaries
Possible Implementation
- Hash Time-Locked Contracts (HTLCs) with privacy: Traditional atomic swap mechanism enhanced with ZK proofs, shielded lock and unlock conditions
- Adaptor signatures: Cryptographic technique for atomic swaps with no on-chain hash revelation required
- ZK atomic swaps: Zero-knowledge proofs for swap conditions with fully encrypted swap parameters
- Blind escrow: Third-party facilitator who cannot see trade details, trustless via cryptographic commitments
Technical Validation
Risks & Challenges:
- Counterparty discovery: Finding trading partners without revealing intent
- Price negotiation: Agreeing on rates privately
- Cross-chain verification: Validating external chain state privately
- Timeout handling: Managing refunds if swap fails
- Fee coordination: Determining who pays gas on each chain
Integration Points: