This section refers to Shielded Pools' role as a protocol component. To learn more about the cryptographic elements behind Panther's MASPs, go to Multi-Asset Shielded Pools in our Cryptography section.
Shielded Pools are sets of smart contracts where users can deposit various tokens, safeguarded by cutting-edge cryptographic techniques such as zk-SNARKs and zero-knowledge proofs (ZKPs). This renders the transactions within these pools untraceable while providing users with the flexibility to disclose information selectively, thus enabling a pathway to compliance.
By allowing users of multiple kinds of assets to enter the Pool (e.g., different tokens types supported within a given chain, such as ERC-20, non-fungible, and other standards of tokens), users of every compatible token can access the same privacy, regardless of the liquidity of their assets. While a single-asset Pool for rarely-used tokens would struggle to find much security due to the relatively low volume of transactions, MASPs can leverage popular assets to quickly build critical speed and provide much-needed privacy to the long tail of crypto assets.
The fact that different types of assets can co-exist in the same Pool is called Diverse Pool Privacy. Thanks to it, Pools can get large enough to preserve data heterogeneity, i.e., have so many transactions happening within them that it becomes impossible to track and deanonymize users.
The following are all made possible due to Panther using MASPs:
- Depositing and withdrawing assets.
- Users transacting and sending funds to each other within the Pool.
- Receiving rewards and paying fees.
A key milestone for Panther is to deploy Shielded Pools onto multiple blockchains, 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 can attract institutions and retail users alike.