Enabling privacy for Cardano DeFi

[IMPACT] Please describe your proposed solution.

Panther is a decentralized protocol that enables interoperable privacy in DeFi using zero-knowledge proofs. This allows retail and institutional investors to execute private, trusted DeFi transactions across multiple blockchains and provides financial institutions with a clear path to compliantly participate in DeFi.

Panther’s solution to the problem includes:

Multi-Asset Shielded Pool - This will enable 1:1 zAsset creation (Panther private/shielded asset) and multiple tokens to be mixed in one pool thereby increasing the efficiency and privacy guarantees to the Cardano users through advanced shielded pool technology.
Private Multi-Chain Bridges - This will allow interoperable zAssets that enable private cross-chain transactions as well as private bridges for Cardano between EVM and non-EVM chains. Bridges will be built to connect interchain solutions to multiple peer chains driven by Cardano demand and foundation’s expected requirements.
Reveals Applied to Compliance - Panther allows the following types of reveals:
Full Reveals - full disclosure of data sets
Selective Reveals - partial disclosure of data sets
ZK Reveals - disclosure of verifiable information without sharing its underlying data

Panther enables Confidentiality with Compliance. Cardano users, upon entering the DeFi ecosystem, will benefit from privacy provided by the Panther integration because of the compliant nature of the “selective disclosure” privacy setting. This represents a natural onramp and offramp to privacy and decentralized finance. Integrating Panther’s features will make it simpler for institutions, already integrated with chain analytics service providers, to rapidly audit transactions, redeploy capital, and address treasury management needs with standard expectation velocity around transaction settlement timelines, all while having anti-surveillance alpha protection simply by onramping through Cardano.

DeFi Composability - Panther will allow the following for Cardano:
Infuse privacy into the existing liquidity base of Cardano
Wallet connect-based browser integration
DeFi adaptors
Third-party wallet integrations

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

Users and institutions will have identity and transaction privacy utilising the zAssets in the Panther MASP (Multi Asset Shielded Pool). When transactions are not open, it becomes harder for someone to copy or front run.
Interchain solution allows private bridging of assets across multiple chains thus gaining access to wide Defi following better APY.
Compliance solutions allows for KYC and other regulatory requirements, enabling access to DeFi in a private and compliant way.

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

Zero knowledge technology is nascent and requires a learning curve. Panther overcomes this in the following ways:

Building a world-class team composed of zkp cryptographers, solidity devs and architects. Size - 16
Participating in the privacy ecosystem - building and supporting the open source adoption by being the silver sponsor for Zprize initiatives that bring in all major players of the zero knowledge privacy space

Defining a good testing and QA process for Web3 technology and smart contract audit. Panther overcomes this in the following ways:

Hiring of back up auditors and building internal quality gate methods for Web3
Creating multiple incentivized testnets for community feedback

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

Technical Assessment (September 2022)

Build Panther on Cardano - Deliverable 1 (October - December, 2022)

Panther will build the core Privacy Protocol on Cardano utilizing the EVM side chain Milkomeda which will enable privacy for the assets transacted on Cardano. This core solution will then be further integrated: a. DeFi on Cardano for Institutional business b. With Panther’s private Interchain Transfer.

Panther core privacy solution includes:

Identity (user address) and Transaction Privacy - Panther facilitates privacy whilst retaining trust. Any user can privately mint, burn and transfer zAssets in a permissionless fashion at any time, without being forced to prove anything. All zAsset transactions are associated with a cryptographically concealed, abstract representation of user identity. The native token holders will be drawn by both the trustless design and the privacy offering provided to ADA holders’ transactions and user addresses on Cardano.
Panther Decentralized Web Application - dApp support with inbuilt Wallet feature to support privacy.
Multi Asset Shielded Pools - Multi-Asset Shielded pools will enable multiple tokens to be anonymized in one pool thereby increasing the efficiency and privacy guarantees to the Users.
Panther Privacy Staking Rewards - Users staking assets and transacting inside Panther pools are rewarded with PRP’s (Panther Reward Points) which can be converted to $ZKP by a robust quasi AMM process.

Integrations and Enhancements to Panther Core - Deliverable 2 (January - February, 2023)

DeFi Integration - Panther will build adapters to integrate with DeFi protocols seamlessly by providing API’s and SDK for developers to help with integration.
ZK Services with Decentralized Storage - Storing data and ZK proofs to enable KYC and other verification methods. Users have control of their data and provide just the proofs when required. Resulting in increased utility for the protocol and value for leveraging Cardano network as a bridge to DeFi. Resulting in greater utility to institutions (i) seeking to mitigate counterparty risks and (ii) requiring adequate anti-surveillance to execute proprietary alpha generating strategies on the DeFi (public) ecosystem.
Confidentiality with Compliance - Cardano users, upon entering the DeFi ecosystem, will benefit from privacy provided by the Panther integration because of the compliant nature of the “selective disclosure” privacy setting. This represents a natural onramp and offramp to privacy and decentralized finance. Integrating Panther’s features will make it simpler for institutions, already integrated with chain analytics service providers, to rapidly audit transactions, redeploy capital, and address treasury management needs with standard expectation velocity around transaction settlement timelines, all while having anti-surveillance alpha protection simply by onramping through Cardano. By contrast, if an institution chooses an alternative onramp, without privacy, then it is vulnerable to surveillance and other alpha-eroding attacks; for example, front running, back running and sandwich attacks.

Panther-Cardano Interchain Private Transfer - Deliverable 3 (March - May 2023)

Panther will bring the Cardano ecosystem as part of the InterChain Private Asset Transfer which allows for cross chain swaps using assets on Cardano with assets on other blockchain connected by Panther.

Bridge - Bridges will be built to connect InterChain solutions to multiple peer chains driven by Cardano demand and the foundation's expected requirement.

[FEASIBILITY] Please provide a detailed budget breakdown.

115k - Deploy Panther Core V1 (Deliverable 1):

Technical Analysis - 20,000
EVM Bridge - 10,000
ZK library - 20,000
Code refactoring - 15,000
Testing - 15,000
Audit - 30,000
Deployment - 5,000

Refer to previous question above for details on what will be build out in each phase

[FEASIBILITY] Please provide details of the people who will work on the project.

Core team members, their bios and LinkedIn links can be found on website - <https://www.pantherprotocol.io/>

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

Yes. We have done a three phase approach so we will require funding for Phase 2 and 3 to complete the build out on Cardano.

130k - Deploy DeFi integrations with DeFi protocols on Cardano
145k - Interchain private bridges

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

Panther Pool TVL
Number of DeFi transactions via Panther
Onboarding of Institutions

[AUDITABILITY] What does success for this project look like?

Growth of Panther Pool TVL
High volume of DeFi transactions via Panther
Institutional clients

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

New proposal

bookmarked!