Cross-Protocol Settlement
Cross-Protocol Settlement defines how ZKFund executes actions that touch external protocols without leaking strategy, counterparties, or execution logic.
Real funds do not operate in isolation. They trade across venues, source liquidity from multiple protocols, and interact with infrastructure they do not control.
ZKFund is designed to do this without breaking its privacy guarantees.
The Problem with External Interactions
Most privacy systems fail the moment they interact with something external.
Even if internal execution is private, external calls often reveal:
which protocol was used
when the interaction occurred
approximate trade size
execution intent
Over time, these interactions become reliable signals.
Cross-Protocol Settlement exists to prevent this leakage.
ZK Pool as an Abstraction Layer
ZKFund never interacts with external protocols directly from governance or execution logic.
All external interactions are mediated by ZK Pool.
ZK Pool acts as an abstraction layer that:
encapsulates external calls
enforces governance constraints
absorbs execution details
emits only proof of validity
From the perspective of ZKFund, an external protocol is just:
“a valid settlement endpoint”
not a visible execution partner.
What Is Proven, Not Revealed
When settlement involves an external protocol, ZK Pool proves that:
the interaction followed governance rules
execution stayed within defined limits
no unauthorized behavior occurred
It does not reveal:
which protocol was used
how liquidity was sourced
what route was taken
how execution was optimized
Correctness is verifiable; strategy is not observable.
Execution Without Signaling
Cross-Protocol Settlement is designed to avoid execution signaling.
This means:
no identifiable timing correlation
no consistent execution patterns
no protocol-specific fingerprints
Repeated interactions across the same protocol do not create a detectable pattern from the outside.
Supported Interaction Types
Cross-Protocol Settlement can support:
swaps on external DEXs
liquidity provisioning or removal
OTC-style fills
bridge interactions
cross-domain execution
Each interaction type is handled as a private state transition, not a public transaction.
Failure Handling
If an external interaction fails:
the failure is contained within ZK Pool
no partial state is exposed
no external signal is leaked
a failure proof receipt is emitted
Governance may then decide on remediation without revealing intent.
Security & Trust Model
ZKFund does not assume external protocols are trustworthy.
Instead:
interactions are tightly constrained
settlement rules are enforced locally
proofs validate that constraints were respected
Even hostile or unreliable external protocols cannot extract internal information.
Why Cross-Protocol Settlement Matters
Without cross-protocol privacy:
strategy leaks through venue choice
funds become predictable
adversaries can model behavior
Cross-Protocol Settlement ensures that:
ZKFund remains private even when interacting with the broader ecosystem
execution remains non-inferable
capital can operate freely across protocols
Last updated