zOrbital

Confidential x402 with any stablecoin + opt-in FHE

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zOrbital

Privacy-preserving, n-dimensional AMM + autonomous compute rental with encrypted swaps + x402.

Table of Contents

Problem

The 402 HTTP status code “Payment Required” has existed for decades, waiting for a proper micropayment layer to make it real.

Base’s x402 changes that.

Want to read an article? The server responds with “402 Payment Required: $0.50” and you pay directly.

There’s just one problem: every payment is public + USDC-opinionated.

Solution

zOrbital reimagines Paradigm's Orbital with Fully Homomorphic Encryption (FHE). Swap any stablecoin for USDC in one pool (a feature-rich implementation of Paradigm's design (n-dimensional CLMM for any number of stablecoins), now with opt-in FHE for confidential swaps), and pay for goods/services both publicly/privately. By leveraging Fhenix's FHE Coprocessor (recently live on Base!), the AMM computes valid swaps over ciphertext without ever decrypting the data.

Key properties:

  • Encrypted reserves: Pool state is never revealed
  • Private swaps: Trade amounts computed homomorphically
  • MEV resistant: Bots cannot extract value from encrypted transactions
  • Dual-mode: Public swaps available for users who don't need privacy

Layer 2 Advantages

Deployed on Base Sepolia:

  • Low gas costs make FHE operations economically viable
  • EVM compatibility with existing tooling! FHE operations work natively on EVM-compatible blockchains.

Access a live deployment on Phala Cloud (verifiable cloud computing for private AI) here.

Architecture

+------------------+     +-------------------+     +------------------+
|    Frontend      |     |   Smart Contracts |     |  FHE Coprocessor |
|  (Next.js/wagmi) |<--->|   (Base Sepolia)  |<--->|    (Fhenix)      |
+------------------+     +-------------------+     +------------------+
        |                        |
        v                        v
+------------------+     +-------------------+
|   cofhejs SDK    |     |    FHERC20        |
| (client encrypt) |     | (encrypted ERC20) |
+------------------+     +-------------------+

Components

Directory Description
frontend/ Next.js web app with wallet integration
zorbital-cofhe/ Private AMM using FHE (zOrbital.sol)
orbital-core/ Public AMM for non-private swaps
fhenix-confidential-contracts/ FHERC20 token standard
a2a-x402-typescript/ Agent-to-agent x402 payments

Contract Flow

  1. User wraps ERC20 into FHERC20 (encrypted token)
  2. Frontend encrypts swap amount using cofhejs
  3. zOrbital.swap() computes output homomorphically
  4. User receives encrypted FHERC20 balance
  5. Optional: unwrap back to public ERC20

Tech Stack

Layer Technology
Frontend Next.js 15, React 19, TypeScript
Wallet RainbowKit, wagmi, viem
Encryption cofhejs (Fhenix FHE SDK)
Contracts Solidity 0.8.25, Foundry
L2 Base Sepolia
Deployment Docker, Phala Cloud

Deployed Contracts

All contracts deployed on Base Sepolia.

Pools

Contract Address
zOrbital (Private) 0xa513B34e2375ab5dAF2C03FEB79953A8256b304E
Orbital (Public) 0xe077aD60fa6487594514B014e5294B542E92a1c7
OrbitalManager 0xf8753dE4d99a88FbcA0F5403838E01bCa5C11e78

FHERC20 Tokens

Token Encrypted Underlying
USDC 0x0f3521fFe4246fA4285ea989155A7e4607C55f17 0x5E364C53fC867b060096bDc48A74401a6ED6b04a
USDT 0x7943Eee6ABaD45A583E2aBEeA6Eb9CB18b4b6987 0xc04669a9c26341F62427b67B813E97426a8670C3
PYUSD 0x79Ba1D402d4B6f6334A084A2637B38a89F74a7Bc 0x073285F3Fe2b388A0cf4c2f0DC9ad13197531Cbf

Setup

Prerequisites

  • Node.js 20+
  • Docker (for deployment)
  • Foundry (for contracts)

Install Dependencies

# Frontend
cd frontend
npm install

# Contracts
cd ../orbital-core
forge install

cd ../zorbital-cofhe
npm install

Environment Variables

Create frontend/.env.local:

NEXT_PUBLIC_WALLET_CONNECT_PROJECT_ID=your_project_id

Local Development

Run Frontend

cd frontend
npm run dev

Open http://localhost:3000

Compile Contracts

# Public AMM
cd orbital-core
forge build

# Private AMM
cd ../zorbital-cofhe
npx hardhat compile

Run Tests

cd orbital-core
forge test

cd ../fhenix-confidential-contracts
npx hardhat test

Deployment

Docker Build

cd frontend
docker build --platform linux/amd64 -t yourusername/zorbital:latest .
docker push yourusername/zorbital:latest

Phala Cloud

  1. Push image to Docker Hub
  2. Upload docker-compose.yml to Phala dashboard
  3. Set port 3000
  4. Deploy

Contract Deployment

Contracts are deployed to Base Sepolia. Addresses configured in:

frontend/src/contracts/deployedContracts.ts

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