We believe privacy, a human right, is fundamental to the financial system and should become a norm. However, it's still controversial and risky to use in the current climate. Therefore, we want to create a safe and easy first step for users to adopt privacy solutions.

What it does

The night market is a multi-asset anti money laundering shielded account.

Users can hold multiple assets privately.

Users can interact with protocols (swap, stake, lps, etc.) without revealing their identity.

Unlike other shielded pool products, Night Market only allows activities that do not privately transfer value between wallets and only allow you to withdraw to yourself. This mitigates the risk of money laundering.

How we built it

We design Night Market to be easy to use and non-controversial without compromising privacy.

We propose a novel multi-asset UTXO with embedded ownership where we enforce the chain of custody of assets without leaking identity. After each transaction, a new untraceable note is created but still encodes the same owners.

Night market has five main components.

  • Circuit: enforces UTXO with embedded ownership.
  • Smart Contract: keeps state, verifies ZKP, and execution.
  • Relayer: send transactions on behalf of users.
  • Front end: an easy-to-use front end to interact with the protocol
  • Indexer: collect, structure, and serve relevant data to improve user experience and prove time. (TODO)

Note that the protocol is still fully functional without an indexer, relayer, or front end.

Challenges we ran into

Unclear regulatory risk. It's unclear where the line is, but we try to stay relatively conservative.

User experience. The requirements of ZKP and data that have to keep private make it harder to make good UX. We try our best to keep most of it transparent to users.

Accomplishments we're proud of

We designed the protocol and implemented our MVP. We confirm the feasibility of all the unknown part of the project. We confidence that the product can get a lot better than this. The rest are just hard work. :)

What we learned

After some user interviews, we found that many users were unwilling to trade off extra costs or slower transactions for privacy.

We also learn more about the complexity of implementing the protocol in practice.

What's next for Night market

In the next month, we will work on the main five components to be production ready.

Longer-term, there're four areas that we want to work on.

  • We want to make circuit faster.
  • Improve user experience
  • Create self-reporting tools where users can voluntarily create proof that they own assets and made transactions.
  • Extend protocol to allow onboarding of new assets and the ability to do non-mixing shielded transfers.

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