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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.
46 lines
1.3 KiB
TeX
46 lines
1.3 KiB
TeX
\section{Privacy-Preserving DeFi}
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\subsection{Shielded DEX}
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\textbf{Private Token Swap Protocol}:
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\begin{enumerate}
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\item User deposits tokens $A$ into shielded pool (generates commitment $C_A$)
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\item User submits swap order $(C_A, B_{\text{amount}}, \text{price})$ via zkSNARK
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\item DEX matches orders off-chain
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\item User withdraws tokens $B$ via proof $\pi_B$:
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\begin{equation}
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\pi_B \leftarrow \text{Prove}\left(\text{OwnsCommitment}(C_A) \land \text{ValidSwap}(A \to B)\right)
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\end{equation}
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\end{enumerate}
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\textbf{Advantages}:
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\begin{itemize}[leftmargin=1.1em]
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\item Order book hidden (prevents front-running)
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\item Trading volume private (hides whale activity)
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\item Slippage protected (encrypted order matching)
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\end{itemize}
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\subsection{Private Lending}
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\textbf{Confidential Loan Protocol}:
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\begin{table}[h]
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\centering
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\begin{tabular}{ll}
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\toprule
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Action & Privacy Level \\
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\midrule
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Collateral deposit & Shielded (zk-SNARK) \\
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Loan amount & Encrypted (FHE) \\
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Interest rate & Public (on-chain) \\
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Liquidation threshold & Encrypted (FHE) \\
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\bottomrule
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\end{tabular}
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\caption{Privacy levels in Z-Chain lending protocol}
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\end{table}
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\textbf{Key Feature}: Liquidations occur via encrypted threshold checks (FHE-based), preserving collateral privacy until liquidation event.
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