ZKML Options Liquidator
Permissionless Options Liquidation system, using ZKML to prove complex off-chain calcualations so anyone can make profit liquidating delinquent actors and keep the protocol safe for the good actors.
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About
The problem it solves Options trading on DeFi platforms requires intricate calculations for determining liquidation thresholds, a task complicated further by the need for reverse-engineering "Implied Volatility" from market trades. Traditional methods rely heavily on the Black-Scholes formula, posing trust and transparency issues when executed off-chain. Our approach overcomes these challenges by integrating AI/Machine Learning with Zero Knowledge Proofs (ZKP) to ensure accuracy and verifiability of liquidation operations.
How it's made
Challenges we ran into Proving System Limitations: Initial attempts at step-by-step AI inference emulation proved prohibitively expensive. Adoption of the EZKL system, optimized for matrix multiplication in ML, presented a viable alternative. Data Input Validation: The absence of ZK-friendly oracles necessitated a novel approach to validating input data. We achieved this by verifying blockchain transaction signatures and generating ECDSA proofs with Brevis. Proof System Incompatibility: Integrating disparate proving systems posed a significant challenge, addressed by employing a common Poseidon hash to ensure consistency across proofs.