ZKDSC

Demo

About

The problem it solves 1. Lack of Privacy in DeFi Collateral Verification Current DeFi stablecoin systems require users to publicly disclose their collateral holdings and health factor to prove solvency. This exposes sensitive financial data and increases risks like front-running and targeted liquidations. 🔹 Solution: Our system leverages zkVerify and RiscZero to enable users to mint stablecoins while proving collateral sufficiency without revealing their health factor. By integrating zkVerify, we ensure privacy-preserving and trustless collateral verification using Zero-Knowledge Proofs (ZKPs). 2. Trust Issues in Collateralization Most stablecoins rely on centralized oracles or custodians to verify collateral, creating points of failure and censorship risks. 🔹 Solution: We use zkVerify’s immutable proof storage, ensuring all collateral proofs are verified in a decentralized and trustless manner. 3. High Gas Costs for On-Chain Collateral Verification Performing collateral health checks on-chain can be expensive, especially on Ethereum mainnet, limiting accessibility. 🔹 Solution: By deploying on Arbitrum, we reduce gas costs while maintaining security and efficiency. ZKP-based verification further optimizes computational overhead.

How it's made

Challenges we ran into 1) We faced a lot of issue with the setup of Risc0. 2) Tried setting it up for 4 days but it was not working in one of the laptop's. Finally we wrote the entire code on a single laptop in which it was working. 3) First time working with Rust which itself was a challenge. 4) Our contract logic was complex which made debugging a pain in the a**.