Deployed on Polygon tesetnet: 0x11688c67959225BDbb7835c5Bf734B983044b4FF

Project Overview:

Our project enables users to conduct private on-chain trades while maintaining traceability through oversight by a designated committee of members.

At its core, the project employs DKG, a cryptographic method that facilitates secure, distributed creation of a public/private key pair among a group of participants. This approach not only decentralizes the control over private transactions but also introduces a higher level of security and resilience against attacks.

Utilizing the Distributed Key Generation (DKG) protocol, we establish a framework enabling traceability managed by a designated committee of members. This approach ensures users can conduct trades with a high degree of privacy, safeguarding their sensitive information unless their actions necessitate scrutiny due to involvement in illicit activities, prompting the protocol to initiate traceability measures

AML Compliance and Traceability:

A unique feature of this project is its innovative solution to the challenge of balancing privacy with regulatory compliance. Through a meticulously designed protocol, a select group of committee members, adhering to strict governance and ethical standards, have the capability to retrospectively trace transactions back to their origin. This traceability is crucial for AML compliance, ensuring that while the system champions privacy, it does not become a haven for illicit financial activities.

Key Features:

AML Compliance: Utilizes DKG technology to provide traceability and compliance, allowing designated committee members to audit transactions as needed to comply with AML regulations.

Decentralized Security: Employs a distributed approach to key generation, ensuring that no single point of failure can compromise the system's integrity or the confidentiality of transactions. Interoperability: Designed to be compatible with multiple trading platforms and blockchains, facilitating seamless and private cross-chain transactions. User Autonomy: Offers users the ability to trade with confidence, knowing their financial activities are shielded, yet still in compliance with regulatory standards.

Impact and Vision:

The project aspires to set a new standard for privacy in the trading domain, addressing the pressing need for a solution that harmonizes the demand for privacy with the imperative of regulatory compliance. By achieving this balance, Our project aims to foster trust, encourage wider participation in digital asset markets, and ultimately contribute to the growth and sustainability of the decentralized finance ecosystem.

This initiative represents a significant step forward in the evolution of trading platforms, demonstrating that it is possible to design systems that respect individual privacy while upholding the highest standards of legal and regulatory compliance.

Future work

• Optimizing Parameter Input with Statistical Analysis: Leveraging the power of statistical analysis, we aim to refine our parameter inputs to enhance the privacy and security of transactions. By meticulously analyzing historical data and transaction patterns, we will develop algorithms to dynamically allocate funds into four distinct parts, making it exceedingly difficult to trace individual transactions. This strategic approach not only fortifies user privacy but also strengthens our platform's resilience against potential attacks or breaches.

• Implementing Private DAO for Committee Member Oversight: In our relentless pursuit of transparency and accountability, we will introduce a private decentralized autonomous organization (DAO) dedicated to monitoring the activities of committee members. This private DAO will operate independently, utilizing cryptographic techniques to ensure the integrity and confidentiality of its operations. By empowering the community to oversee the actions of committee members, we reinforce trust and uphold the principles of decentralized governance.

• Designing an Incentive Mechanism for Committee Members: Recognizing the pivotal role of committee members in maintaining the integrity of our platform, we will introduce a robust incentive mechanism to reward their contributions. Through a carefully crafted incentive structure, committee members will be incentivized to adhere to governance and ethical standards while actively participating in transaction auditing and compliance activities. This incentivization not only motivates committee members to fulfill their responsibilities but also fosters a collaborative ecosystem focused on the shared goal of privacy and compliance.

Documentation

The project have been deployed to the Polygon testnet. The address detail can be look at the follow link: https://docs.google.com/document/d/1TXu1b5XezsdM1jepLHgTONffQA4VTrk332h4mNaRJJY/edit?usp=sharing

For our details implementation: https://drive.google.com/drive/folders/1kmkSEeqXKe-y6CR5-fDimgw4l1BOXke_?usp=sharing