Zero-Knowledge Assets




  • zAssets represent digital assets as UTXOs

  • ZK proof of UTXO activity are written on-chain

  • This mechanism enables privacy-enhanced trading


zAssets are 1:1 representations of digital assets deposited by users into Shielded Pools. It is the zAsset that confers much of the Protocol's privacy-enhancing features.

When users deposit their assets into a Panther Shielded Pool, they essentially convert their regular tokens or assets into zAssets, to be managed within Pantherโ€™s zero-knowledge layer.


When a user deposits a digital asset into the Panther Vault via their Panther account, a UTXO (Unspent Transaction Output) is generated to represent that asset โ€” the zAsset.

The Protocol uses ZK-SNARK (Succinct Non-Interactive Argument of Knowledge) proofs to store UTXO data on-chain. This allows a userโ€™s on-chain state to be stored privately and to ensure private state changes.

This means that the zAsset data that represents the original digital asset on-chain is both condensed and encrypted. Asset balances and balance changes are not publicly available should a Panther account address become known to an observer.


Users can withdraw their zAssets back into their original form whenever needed. When they do so, the UTXO that represented the underlying asset is "spent".


zAssets are fully collateralized by the underlying tokens that users deposit through UTXO ownership. The ownership of those zAssets can be transferred through in-pool UTXO transactions, which represent the ability to convert zAssets back into native assets on the Poolโ€™s underlying blockchain network.

zAssets enhance privacy

The observable data that results from a trade is that a UTXO was committed to the smart contract. Only the owner of the UTXO can decrypt the ZK-proof and ascertain the value and token that the UTXO represents.

Which assets are supported?

Panther's Shielded Pools support the following asset classes:

  • ERC-20 (including some variants like ERC-404)

  • ERC-721

  • ERC-1155

Which assets may be deposited are determined by the Zone Manager.

This allows different Zones to support different asset sets, which will enable Zone Managers to determine what assets they support according to risk profiles, state laws, and other considerations.

What next?

zAccounts are also represented by UTXOs, so it's worth taking time to understand our unique UTXO model.

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