Introduction to Singularity: Your Gateway to Confidential DeFi
Welcome to Singularity, your gateway to the DeFi ecosystem confidentially. As we move closer to the main net launch, we’re doing a series of awareness pieces to deep dive into various use cases and unveil how you can engage with DeFi just as before, but with your on-chain actions obfuscated.
Singularity serves as a compliant, confidential DeFi infrastructure layer that conceals on-chain wallet addresses and transactions, specifically designed for institutional users.
We’ve integrated with top DeFi protocols, allowing you to tap into existing liquidity seamlessly while maintaining confidentiality.
In this awareness piece, we are going to dive into our first use case: on-chain actions that are commonly utilized in permissionless DeFi pools, why some elect to make this confidential and how we make it confidential.
But before we dive in, below is a summary of our key updates over the last few weeks.
On-chain actions that are common in permissionless DeFi pools including swapping, LP’in, staking, lending and borrowing are often tracked by on-chain sleuths and flagged by data analytics software particularly if you are ‘smart money’ which covers many institutional users and whales.
So this leads to a multitude of reasons why users want to obfuscate their on-chain actions by obfuscating their wallet addresses, including:
Proprietary Strategies: Users might prefer to keep their on-chain actions confidential to protect unique trading or investment strategies by not having these actions linked to their wallet addresses. Disclosing these actions could allow competitors to mimic or counteract these strategies, potentially limiting their effectiveness.
Protecting Public Perception: Transparency in financial transactions can sometimes lead to misinterpretation by the public or investors “FUD.” Users may prefer to keep their on-chain actions confidential to avoid speculative assumptions about their financial position or strategic intentions, which could influence their market reputation or asset prices.
Alpha leaks: In the Web3 world, copying ‘smart money’ wallets is a significant concern. Keeping wallets confidential helps in preventing such practices.
Wallet Management Nuisances: Managing wallets and their associated transactions can become complex and risky, especially with high visibility. Entities might opt for confidentiality to avoid the logistical and security challenges that come with publicly known wallet activities, such as unwanted and unproductive scrutiny.
Ensure Market Stability: Large on-chain swaps made can dramatically impact market liquidity and price volatility if made public. By keeping these transactions confidential, entities can help maintain market stability, preventing sudden market swings that could result from overreactions or “FUD” to their large-scale asset movements.
Singularity’s integration with leading DeFi protocols like Uniswap and Curve means users don’t have to compromise on liquidity.
By simply connecting your preferred wallet ie. Metamask, Fireblocks, etc to Singularity you can deposit your assets into our smart contract and via our integrations our users can directly access existing liquidity as aforementioned.
Once assets are deposited into the Singularity contract, the user’s wallet identity becomes obfuscated from public explorers.
How?
The only visible detail on-chain is the Singularity contract address. This means that regardless of the number of actions a user performs, from a single transaction to thousands, the external visibility is limited to Singularity’s address. This approach effectively conceals our users’ on-chain activities, enhancing confidentiality.
As the obfuscation of wallet addresses can sometimes cause some to be fearful from the compliance perspective, we have taken a compliant-first approach through the requirement that all users must be KYC’d or KYB’d prior to the utilization of our protocol.
We partner with Keyring, a trusted third-party provider, for KYC and KYB attestations. This partnership enables our users to verify their identities and access our protocol seamlessly through API calls.
The integration of Zero-Knowledge proofs is integral to our mission and our commitment to commercial confidentiality. By harnessing this advanced technology, we’re not just obfuscating transactions; we’re redefining what Confidential DeFi means in the digital age and allowing our users to improve their operations.
Stay tuned for more insights by subscribing to our newsletter and look forward to the next installment in our awareness series on use cases and more.
About Singularity:
Singularity is a compliant institutional DeFi access layer that provides access to popular protocols for institutional on-chain participants with commercial confidentiality. Users will have their wallet addresses obfuscated while leveraging existing DeFi liquidity. Singularity uses the state-of-the-art UltraPLONK proof system with zero-knowledge circuits based on Noir.
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