💱 Add Privacy-Preserving Swaps via Z-Chain

[zeekay]

Implement private token swaps using the new Z-Chain zero-knowledge features.

Background

The new Z-Chain supports shielded transactions with hidden amounts. We should add support for private swaps in the DEX.

Timeline (4 weeks)

Week 1 (Feb 3-7, 2025)

• Research & Design (3 days)
  • Study Z-Chain transaction format
  • Design privacy swap UI/UX
  • Plan smart contract architecture

Week 2 (Feb 10-14, 2025)

• Smart Contract Development (5 days)
  • Create PrivacyPool contract
  • Implement zero-knowledge proof verification
  • Add cross-chain message handling
  • Write comprehensive tests

Week 3 (Feb 17-21, 2025)

• Frontend Integration (4 days)
  • Add privacy toggle to swap UI
  • Implement proof generation in browser
  • Create shielded balance display
  • Add transaction status tracking

Week 4 (Feb 24-28, 2025)

• Testing & Audit Prep (4 days)
  • Integration testing
  • Gas optimization
  • Security review
  • Documentation

Technical Details

• Use Groth16 proofs for efficiency
• Support partial privacy (amount hidden, addresses visible)
• Maintain same swap interface with privacy option
• Cross-chain liquidity via B-Chain bridge

Success Metrics

• < 5 second proof generation
• Gas cost < 2x regular swap
• No UX degradation
• Pass security audit

Assignee: @zeekay
Priority: P1 - HIGH
Due Date: February 28, 2025