Cleverly Using Money

Problem Statement

The Problem: Capital Efficient DeFi protocols and Privacy Preserving Protocols are not combined easily. Funds in privacy pools are mostly dead capital which can't interact with the rest of the DeFi ecosystem. It is only possible for users to use DeFi protocols upon withdrawal from an anonymity set which comes at the expense of anonymity reduction.This protocol aims to Cleverly Utilize Money to bridge the gap between Private Capital and DeFi Strategies.The protocol allows LPs to stay anonymous by pooling funds in a Private Vault v(powered by zk proofs) that routes liquidity into Aqua and reuses it across multiple strategies. Yields are powered via rebasing the token denomination.

Solution

We used noir to build PrivateVault where makers (LPs) pool their funds and remain anonymous. The vault further unlocks those funds to aqua for use in multiple strategies.PrivateVault was built using Noir and references the Tornado Cash circom implementation. This updated implementation is designed to be highly extensible and can be inherited in various vault contracts. It uses more efficient Poseidon hashes instead of MiMC hashes. Furthermore, it allows for multiple tokens in multiple denominations to be combined in a single private vault for gas and capital efficiency.AquaVault inherits from this PrivateVault and extends it with various strategies that may be submitted through curator(s) via an ownership controls of the AquaVault contract