Introduction

In general, all mixers have an inherent paradox.

In order to preserve your privacy, you need to have your funds sit at the mixer for as long as possible.

This is needed for other users' activity to mask your own activity.

This contradicts your desire to get your funds back as soon as possible.

ZKLSOL (Zero Knowledge SOL) is designed to solve this by denominating the base mixer in an LST (Liquid Staking Token). This way, your funds earn yield while you wait for the required time to ensure your privacy.

Furthermore, ZKLSOL supports Solana Confidential Token Extensions, so you can continue using ZKLSOL after the initial mixing and maintain your privacy without needing to go through the mixer again.

Background

Previously Solana had two privacy protocols, Light Protocol and Elusiv.

Both stopped their privacy-related activities during the Tornado Cash ordeal.

This left thousands of users without an alternative.

Light Protocol

But the tides are turning, and regulators are reconsidering.

How It Works

create fresh wallet SOL ZKLSOL send txn to mixer submit secret note user token mixer deposit fixed amount receive secret note LST relay user fresh wallet receive: LST+ tiny SOL to allow some txns

Solana Confidential Extensions

ZKLSOL supports confidential extensions. This means that you can move ZKLSOL from wallet to wallet without exposing the amounts transferred, or use it in various DeFi protocols.

The extensions are natively supported by Solana, and you don’t need to go through the mixer each time you use them.

Furthermore, since ZKLSOL is an LST, you earn yield while you hold it, and you can always swap it back to SOL / USDC / USDT, or any other token you desire.

Leveraged Privacy

Using third-party DeFi protocols like Kamino Multiply, ZKLSOL also offers leveraged mixer pools with higher yields compared to an unleveraged LST token.

deposit SOL token mixer user withdraw ZKLSOL LST SOL ZKLSOL extra yield ZKLSOL kamino multiply new wallet

Protocol Revenue

  1. Mixer fees

    0.5% * 60K SOL/month * $200 ~ $750K/year

    Based on Light Protocol volume

  2. LST fees

    Deposit/Withdraw/Management ~ $250K/year

DAO Proposals

  1. DO WE WANT TO OPERATE MASKNET

    MaskNet is a proprietary network of bots that mimic human activity and use the mixer.

    This increases human users' privacy by having more funds flow in and out of the mixer, thus observers will have a harder time attempting to trace activity patterns.

  2. LIMIT THE PROTOCOL TO INVITE‑ONLY HIGH‑PROFILE / HIGH‑NET‑WORTH INDIVIDUALS

    This will reduce attention and reduce the potential regulatory issues the protocol faces.

    These people value their privacy and will be willing to pay higher fees than a publicly open protocol aimed at everyone.

    This can be expanded later via referrals and user invitations.

  3. APPLY REGULATORY SCREENING PRIOR TO DEPOSIT

    Use services like Elliptic ($25K/year) / Range ($10K/year) to ensure that users of the protocol don't pose risks to the protocol; for example, by preventing the Lazarus Group from using it.

Funding Needed

  1. Security audit ~$50K (one-time).
  2. Ongoing development — two developers, $10K/month each.
  3. Business development — one person, $7.5K/month.
  4. Marketing ~$50K (one-time).
  5. SOL to boost ZKLSOL yield and attract more users ~$250K (one-time, refundable).
  6. Community mods & support (Discord, etc.) ~$1K/month.
  • Minimum raise — $300K
  • Ideal raise — $650K

Links

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