Allows users to collateralize their shielded assets to borrow other shielded assets without publicly revealing their financial positions, debt, or net worth.
FURPS+
Ai generated
This section was generated by an LLM and has not yet been human-reviewed.
Functionality
- Enable collateralization of shielded assets to borrow other shielded assets
- Execute liquidations when positions become under-collateralized
- Calculate health factors and interest rates
- Integrate with price oracles for asset valuation
- Maintain protocol solvency
+ (Privacy, Anonymity, Censorship-Resistance)
- Keep all user positions, collateral amounts, and borrowed amounts confidential
- Execute liquidations without revealing the position being liquidated
- Maintain protocol solvency while hiding individual user data
- Prevent attackers from identifying over-leveraged positions to target
Demand Validation
Potential Users: Capital-efficient DeFi users, leveraged traders, liquidity providers
Use Cases:
- Leveraging holdings without selling or exposing positions
- Borrowing for trading opportunities while maintaining privacy
- Earning yield on deposited collateral
- Accessing liquidity without tax events
Possible Implementation
- Advanced ZK circuits for private liquidation management
- Privacy-preserving price oracles for asset valuation
- Encrypted health factor and interest rate calculations
- Fair liquidation mechanisms without public liquidation bots
- Protocol solvency proofs without exposing user positions
Technical Validation
Risks & Challenges:
- Building advanced ZK circuits to manage liquidations privately
- Calculating health factors and interest rates on encrypted data
- Implementing privacy-preserving price oracles
- Designing fair liquidation mechanisms without public liquidation bots
- Proving protocol solvency without exposing user positions