One key component that will help realize Panther’s vision of decentralized, privacy-preserving DeFi access is to develop plugins specific to existing protocols and connect them to Panther Pools (Panther’s private Multi-Asset Shielded Pools). This overall solution is referred to as DeFi Adaptors.
Each plugin enables zAssets to interact with DeFi protocols by passing relevant values and function types, resulting in a seamless transaction flow while maximizing the benefits of both protocols for the user. Thanks to this system, users gain access to Panther’s privacy-preserving features while integrating with DeFi services (such as atomic swaps, liquidity provisioning, and staking) without letting go of the underlying security of the blockchain networks Panther is deployed on.
Panther’s catalog of DeFi Adaptors will be ever-expanding to interact with a broad range of DeFi dApps and protocols. Each of these different interaction types will have a dedicated Adaptor, and, as you will see below, the DeFi Adaptor dedicated to swapping assets through DEXs is called zSwap.
Thanks to this system, users gain access to Panther’s zero-knowledge privacy without letting go of the underlying security of the blockchain networks Panther is deployed on.
Panther’s Multi-Asset Shielded Pools connect to DeFi dApps through custom plugins. The overall solution is what we refer to as “DeFi Adaptors.”
DeFi Adaptors and Panther’s privacy
Another critical feature of DeFi adaptors is their ability to integrate with Panther's Shielded Pools. Panther's Shielded Pools allow users to deposit (multiple types of) tokens and trade within the pool without being traced. Using Zero-Knowledge proofs and ZK SNARKs cryptography, DeFi Adaptors ensure that users' assets cannot be traced back to any particular user.
Adaptors enable users to break the on-chain link between their assets and DeFi activity. By facilitating private asset transactions and enhancing the zero-knowledge transaction flow towards widely used DeFi protocols, adaptors like zSwap help to ensure that users' sensitive financial information is kept secure.
Since transactions happen to and from Pools, with diverse users entering and withdrawing from them, transacting within them, and interacting with outside protocols (including swapping assets), an external observer can’t surveil any user. This is demonstrated in the diagram below.\
DeFi Adaptors’ role in Panther’s overall privacy set (here illustrated with asset swapping).
Some use cases of DeFi Adaptors include:
Swaps: DeFi Adaptors facilitate users accessing swaps and interacting with the decentralized finance ecosystem from Panther’s Shielded Pools. This enables users to securely and privately exchange assets while safeguarding their data privacy.
Liquidity provisioning: DeFi Adaptors allow users to contribute their zAssets to liquidity pools in decentralized exchanges (DEXs) or automated market makers (AMMs). This enables users to earn passive income through fees generated from trades without creating a link to their wallets and identity.
Staking: DeFi Adaptors can enable users to stake their zAssets in various decentralized platforms, such as proof-of-stake networks or yield farming protocols. This allows users to earn rewards or interest on their assets.
Cross-Chain compatibility: DeFi Adaptors can be designed to work across multiple blockchain platforms and systems, promoting cross-chain collaboration and enabling users to interact with a wide range of DeFi applications while preserving their privacy.
Seamless Integrations: DeFi Adaptors can be integrated into user-friendly wallets and platforms, ensuring that even users with limited technical knowledge can access the benefits of shielded pools while participating in the DeFi ecosystem.