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| 1 | +# ParaVeil: Privacy-Preserving DeFi Middleware for Polkadot |
| 2 | + |
| 3 | +- **Team Name:** ParaVeil |
| 4 | +- **Payment Details:** |
| 5 | +- **DOT:** [13wkakWuNMjVvtmne4BMRvMXpHALGiDQ1AT1eFV3mwn1VYe3] |
| 6 | + |
| 7 | +## Project Overview : |
| 8 | + |
| 9 | +### Overview |
| 10 | + |
| 11 | +- **Tagline:** Plug-and-play privacy middleware enabling seamless, compliant privacy for DeFi across Polkadot parachains. |
| 12 | +- **Description:** ParaVeil is a modular privacy engine for DeFi applications on Polkadot. It encrypts transaction amounts and on-chain state via off-chain PET co-processors (TEE-based), while on-chain Substrate pallets verify zero-knowledge proofs to maintain private shared state without altering existing parachains or requiring additional wallets. |
| 13 | +- **Integration:** Implements a Substrate pallet and XCM v3 messaging for cross-parachain encrypted transfers; compatible with any Polkadot parachain. |
| 14 | +- **Motivation:** Address growing demand for financial privacy in DeFi—providing middleware infrastructure to enable confidential operations while preserving auditability and compliance. |
| 15 | + |
| 16 | +### Project Details |
| 17 | + |
| 18 | +- **Mockups/UI:** N/A (middleware only; SDK includes CLI examples). |
| 19 | +- **Data Models/API:** |
| 20 | + - EncryptedBalance struct (ciphertext, nonce, proof) |
| 21 | + - OffChainWorker RPC methods: `submit_ciphertext()`, `verify_proof()` |
| 22 | +- **Tech Stack:** |
| 23 | + - Substrate FRAME (Rust) |
| 24 | + - arkworks-rs for zkSNARKs |
| 25 | + - Intel SGX / AMD SEV enclaves |
| 26 | + - WASM for co-processor modules |
| 27 | + - TypeScript SDK \& Polkadot.js plugins |
| 28 | + |
| 29 | +#### Architecture Diagram |
| 30 | + |
| 31 | +[](https://postimg.cc/QHBBmWD2) |
| 32 | + |
| 33 | +### Ecosystem Fit |
| 34 | + |
| 35 | +- **Ecosystem Role:** Infrastructure-level privacy for DeFi parachains. |
| 36 | +- **Target Audience:** Parachain teams, DeFi protocol developers, institutional users requiring compliance-ready confidentiality. |
| 37 | +- **Needs Met:** Confidential transaction amounts and state to enable privacy-preserving swaps, lending, and yield strategies. |
| 38 | +- **Need Identification:** Polkadot Forum discussions (e.g., “Privacy preserving wallet extension”); Manta Network demand metrics; developer surveys. |
| 39 | +- **Comparative Projects:** |
| 40 | + - _Manta Network_ (zkSNARK-based DEX privacy) – ParaVeil offers middleware for any parachain. |
| 41 | + - _Aleph Zero_ (privacy chain) – ParaVeil is parachain-agnostic middleware. |
| 42 | +- **Related Ecosystems:** Secret Network middleware on Cosmos; Aztec on Ethereum (requires bridging). |
| 43 | + |
| 44 | +## Team |
| 45 | + |
| 46 | +### Team Members |
| 47 | + |
| 48 | +- [Aman Satywani] – Full-stack developer, ZK researcher |
| 49 | + |
| 50 | +### Contact |
| 51 | + |
| 52 | +- **Contact Name:** [Aman Satyawani] |
| 53 | +- **Contact Email:** [amansatyawani10@gmail.com] |
| 54 | + |
| 55 | +### Legal Structure |
| 56 | + |
| 57 | +- **Registered Address:** [Street, City, Country] |
| 58 | +- **Registered Legal Entity:** [Your Entity Name] |
| 59 | + |
| 60 | +### Team’s Experience |
| 61 | + |
| 62 | +- **Previous Grants/Contributions:** |
| 63 | + - [Solana Foundation x CoinDCX grant] |
| 64 | + - [Turbin3 graduate] |
| 65 | + - [Open source contribution to solana foundation bounties] |
| 66 | + |
| 67 | +### Team Code Repos |
| 68 | + |
| 69 | +- https://github.com/ParaVeil |
| 70 | + |
| 71 | +### Team GitHub Profiles |
| 72 | + |
| 73 | +- https://github.com/[satyawaniaman] |
| 74 | + |
| 75 | +### Team LinkedIn Profiles |
| 76 | + |
| 77 | +- https://www.linkedin.com/in/[aman-satyawani-2566a5222] |
| 78 | + |
| 79 | +## Development Status : |
| 80 | + |
| 81 | +- **Code:** Prototype privacy pallet and TEE co-processor on private repo. |
| 82 | +- **Research:** |
| 83 | + - arXiv:2307.00521 zkFi middleware |
| 84 | + - Phala Network “What is Coprocessor?” blog |
| 85 | + - Encifher integration docs |
| 86 | + - Ethereum Research co-processor proposals |
| 87 | +- **Discussions:** Polkadot Forum threads on private transactions; GitHub issues on XCM privacy. |
| 88 | +- **Documentation:** Draft README with architecture diagrams; initial API spec. |
| 89 | + |
| 90 | +## Development Roadmap : |
| 91 | + |
| 92 | +- **Total Estimated Duration:** 6 months |
| 93 | +- **Full-Time Equivalent (FTE):** 2.0 |
| 94 | +- **Total Costs:** 10,000 USD |
| 95 | +- **DOT %:** 60% |
| 96 | + |
| 97 | +### Milestone 1 — Core Privacy Engine \& Integration (Months 1–2) |
| 98 | + |
| 99 | +- **Duration:** 2 months |
| 100 | +- **FTE:** 2.5 |
| 101 | +- **Costs:** 4,000 USD |
| 102 | + |
| 103 | +| Number | Deliverable | Specification | |
| 104 | +| -----: | :------------------------ | :------------------------------------------------------------------------ | |
| 105 | +| 0a. | License | Apache 2.0 | |
| 106 | +| 0b. | Documentation | Inline code docs; “Getting Started” integration guide | |
| 107 | +| 0c. | Testing and Testing Guide | Unit tests for pallet \& proof verification (>90% coverage); test guide | |
| 108 | +| 0d. | Docker | Dockerfile for local Substrate node + co-processor | |
| 109 | +| 1 | Privacy Pallet | FRAME pallet: encrypted state, on-chain zkSNARK verification | |
| 110 | +| 2 | PET Co-Processor Module | SGX enclave: receives ciphertexts, generates proofs, returns results | |
| 111 | +| 3 | ZK Proof Integration | arkworks-rs circuits for range proofs \& arithmetic on encrypted balances | |
| 112 | +| 4 | Client Library | Rust CLI for DApps to interact with privacy pallet | |
| 113 | + |
| 114 | +### Milestone 2 — Cross-Chain Messaging \& SDK (Months 3–4) |
| 115 | + |
| 116 | +- **Duration:** 2 months |
| 117 | +- **FTE:** 2.0 |
| 118 | +- **Costs:** 3,000 USD |
| 119 | + |
| 120 | +| Number | Deliverable | Specification | |
| 121 | +| -----: | :------------------------ | :------------------------------------------------------------------------------ | |
| 122 | +| 0a. | License | Apache 2.0 | |
| 123 | +| 0b. | Documentation | XCM privacy messaging guide; SDK API reference | |
| 124 | +| 0c. | Testing and Testing Guide | End-to-end tests for cross-parachain workflows | |
| 125 | +| 0d. | Docker | Multi-node Docker-compose for cross-chain testing | |
| 126 | +| 1 | XCM Privacy Messages | Define and implement custom XCM v3 message types for encrypted transfers | |
| 127 | +| 2 | SDK | TypeScript/JavaScript SDK for parachain \& front-end integration | |
| 128 | +| 3 | Wallet Plugins | Polkadot.js \& Talisman adapters for ParaVeil transactions | |
| 129 | +| 4 | Demo DApp | Privacy-enabled DEX example demonstrating encrypted swaps across two parachains | |
| 130 | + |
| 131 | +### Milestone 3 — Production Readiness \& Compliance (Months 5–6) |
| 132 | + |
| 133 | +- **Duration:** 2 months |
| 134 | +- **FTE:** 2.0 |
| 135 | +- **Costs:** 3,000 USD |
| 136 | + |
| 137 | +| Number | Deliverable | Specification | |
| 138 | +| -----: | :------------------------- | :----------------------------------------------------------- | |
| 139 | +| 0a. | License | Apache 2.0 | |
| 140 | +| 0b. | Documentation | Deployment \& compliance manual; selective disclosure guide | |
| 141 | +| 0c. | Testing and Testing Guide | Security audit prep; stress \& performance testing guide | |
| 142 | +| 0d. | Docker | Production-ready containers \& Kubernetes manifests | |
| 143 | +| 1 | Compliance Framework | Implement selective disclosure protocol for audits | |
| 144 | +| 2 | Security Audit Preparation | Engage auditor; perform vulnerability assessment | |
| 145 | +| 3 | Performance Optimization | Optimize proof generation \& on-chain verification gas costs | |
| 146 | +| 4 | Parachain Integrations | Live testnet integrations with Acala \& Moonbeam | |
| 147 | +| 5 | Final Documentation | Complete developer, operator, and compliance guides | |
| 148 | + |
| 149 | +## Future Plans |
| 150 | + |
| 151 | +- **Maintenance:** Open-source community support, CI pipelines, developer grants |
| 152 | +- **Enterprise Add-Ons:** Privacy-preserving analytics \& auditing dashboard |
| 153 | +- **Governance:** On-chain upgrade proposals via governance pallet |
| 154 | + |
| 155 | +## Additional Information : |
| 156 | + |
| 157 | +**How did you hear about the Grants Program?** Web3 Foundation website. |
| 158 | +**Previous W3F Grants:** N/A. |
| 159 | +**Collaborators:** N/A |
| 160 | +**References:** arXiv:2307.00521; Phala Network blogs; Encifher docs; Ethereum Research. |
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