Shielded Pool
Shielded Pool
| Status | Entrypoint |
|---|---|
In development on testnet |
TL;DR
The Shielded Pool supports the non-interactive trades of zAssets: shielding external wallet addresses
Panther Shielded Pools may be deployed to different L1 or L2 chains
Access to a Shielded Pool is granted via a zAccount created via the dApp within a dedicated Zone
Introduction
Panther Protocol's Shielded Pools underpin the Protocol's vision for compliant, privacy-enhanced trading. Shielded Pools are partitioned into Zones: logical partitions of liquidity with their own entry requirements.
A Shielded Pool supports multiple asset types, i.e. is a Multi Asset Shielded Pool (MASP). Each Pool supports the non-interactive transfer of zAssets within Zones. This non-interactive architecture is fundamental to enabling two parties to transact without knowing or revealing each other's EOA (externally owned account) addresses, i.e. their wallet addresses. This renders the transactions within these pools untraceable while providing users with the flexibility to disclose information selectively, thus enabling a pathway to compliance.
Users within Zones can:
Register and activate Panther zAccounts and zero-knowledge compliance checks
Deposit and withdraw assets
Transact and send funds to other zAccount holders within the Pool
Receive rewards and pay fees
Interact with DeFi dApps and protocols
Conduct OTC-like atomic swap trades
Access cross-chain functionalities
Earn Panther $ZKP rewards
Shielded Pool Zones
Panther Zones are dedicated areas within Shielded Pools that enable users to trade with allowlisted assets and known counterparties. Every Zone is managed and configured by a licensed entity known as a Zone Manager, and users must undergo verification with a KYC provider.
Each Zone in a Shielded Pool supports compliance in a fully agnostic manner, i.e. compliance is defined by the VASP-licensed Zone Manager.
The following diagram highlights how a Shielded Pool allows an end user, the zAccount holder of Zone A in this instance, to transact in this privacy-enhanced Protocol.
Notice that the same Pool can support multiple Zones, here as Zone A and Zone B. This allows Zones A and Zone B to have different daily limits, different supported assets, and different requirements for entry, such as different supported geographical regions for end user residence.
Furthermore, while the KYC compliance provider submitting the attestation that the EOA, e.g. MetaMask wallet, is associated with an individual that has successfully complied with the Zone Manager's ruleset is the same for Zones A and B in this simplified representation, in fact, Zone Managers may undertake their own KYC or select alternative third-party KYC providers. The Protocol itself simply requires the attestation, it does not have insight into who is making that KYC attestation.
Multi-chain Shielded Pools
While the mainnet beta release of Panther Protocol is deployed to Polygon, the Protocol itself supports a multi-chain strategy.
Deploying Shielded Pools onto multiple blockchains is a key milestone for Panther is to deploy — further strengthening the ecosystem and diversifying access to DeFi. This vision, which puts users in control of who views their data while retaining compliance, constitutes a first-of-its-kind approach that leverages existing liquidity, increases connectivity, and is attractive to institutions and retail users alike.
Shielded Pool architecture
A Shielded Pool is a set of smart contracts where users can deposit various tokens, safeguarded by cutting-edge cryptographic techniques such as SNARKs and zero-knowledge proofs (ZKPs).
On-chain state changes are achieved when Panther's Shielded Pools update a collection of append-only Merkle trees, where each leaf is a commitment to a UTXO representing zAssets — essentially an IOU for the corresponding collateral deposited by a user and locked in the Panther Vault, or zAccounts.
What next?
Learn more about non-interactive asset transfer
Find out more about which asset classes are supported
Follow external links from the glossary to learn more
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