mirror of
https://github.com/lux-apps/papers.git
synced 2026-11-03 05:07:46 +00:00
zeekay
abf99d05fc
Restructured from flat .tex/.pdf files into per-paper subdirectories. Added Antje Worring as co-author on all papers. Synced PDFs to pdfs/ for download site.
35 lines
1.2 KiB
TeX
35 lines
1.2 KiB
TeX
\section{Privacy: Homomorphic Encryption of Order Flow}
|
|
|
|
|
|
\subsection{Threat Model}
|
|
|
|
In a standard AMM, pending transactions are visible in the mempool.
|
|
An adversary can:
|
|
\begin{itemize}[nosep]
|
|
\item \textbf{Front-run}: Place a transaction before the victim's to
|
|
profit from the price impact.
|
|
\item \textbf{Sandwich}: Place transactions before and after the
|
|
victim's, extracting value from the spread.
|
|
\end{itemize}
|
|
|
|
\subsection{TFHE-Protected Pools}
|
|
|
|
QuantumSwap encrypts order parameters (amount, direction, slippage
|
|
tolerance) under TFHE before submission. The AMM contract evaluates
|
|
the bonding curve on encrypted inputs:
|
|
|
|
\begin{itemize}[nosep]
|
|
\item Comparison operations (is the price within slippage tolerance?)
|
|
execute as TFHE boolean circuits.
|
|
\item Reserve updates use TFHE integer arithmetic.
|
|
\item The result (trade executed or rejected) is encrypted; only
|
|
the trader can decrypt their outcome.
|
|
\end{itemize}
|
|
|
|
The performance cost is significant: a single TFHE-protected swap
|
|
requires approximately 100 bootstrapping operations ($\sim$10 seconds
|
|
at PN10QP27 parameters). This is acceptable for high-value RWA
|
|
trades but not for high-frequency token swaps.
|
|
|
|
%% ============================================================
|