How Zcash Shielded Pools Work in Zaunchpad

Zaunchpad uses Zcash shielded pools to protect privacy for token launch participants. This guide explains how shielded pools work and how deposits from NEAR Intents flow into them.

1. What are Zcash Shielded Pools?

Zcash shielded pools are private transaction systems that allow transfers without revealing:

Sender Identity: Who sent the transaction
Receiver Identity: Who received the transaction
Transaction Amount: How much was transferred
Transaction History: Previous transactions

Key Concepts

Shielded Transactions: Completely private transactions within the pool
Anonymity Set: The group of all users transacting in the pool
Zero-Knowledge Proofs (zk-SNARKs): Cryptographic proofs that allow verification without revealing data
Unified Shielded Pool: Unified mechanism that severs links between capital source and destination

2. How Shielded Pools Work

Shielded pools use zk-SNARKs to:

Prove Validity: Show transaction is valid without revealing information
Maintain Privacy: Keep all transaction data hidden
Enable Verification: Allow validators to verify without knowing details
Break Links: Sever all on-chain connections between input and output

Transaction Flow

Process

Entry: Funds enter the pool
Mixing: Mixed with other transactions
Anonymity: Identity blends into the user set
Exit: Exits pool as private transaction, source not revealed

Cryptographic Guarantees

Soundness: Invalid transactions cannot be proven
Completeness: Valid transactions can always be proven
Zero-Knowledge: Proofs don’t reveal information
Privacy: All links are hidden

3. How NEAR Intents Deposits Flow into Shielded Pools

Complete Flow

Detailed Steps

Step 1: Deposit via NEAR Intents

User deposits ETH/USDC/NEAR (or supported tokens)
Creates intent: “Swap X tokens to ZEC”

Step 2: Automatic Swap

NEAR Intents uses OneClick Swap to convert to ZEC on NEAR (nep141)

Step 3: Entry into Shielded Pool

ZEC is sent to Unified Shielded Pool
Source identity is completely severed from the shielded transaction

Step 4: Mixing

Transaction mixes with all ZEC in the pool
Hides amounts, timing, and source

Step 5: Anonymity Set Formation

Larger pool → stronger anonymity

Step 6: Private Settlement

ZEC is settled in the pool
Ready for TEE verification process

4. How Zaunchpad Uses Shielded Pools

Process for Launch Participants

You deposit via NEAR Intents
System automatically swaps to ZEC
ZEC enters shielded pool
Mixing happens automatically
You’re added to anonymity set
Phala TEE verifies and generates ZK proof
You claim tokens without revealing identity

Benefits

Source Privacy: Original token source is hidden
Address Privacy: Your address is hidden
Amount Privacy: Transaction amount is hidden
No On-Chain Link: No connection between deposit and claim
Mathematical Security: Privacy guaranteed by cryptography and TEE

5. Anonymity Set

Definition

Anonymity set = the number of users whose transaction yours could be.

Examples

Size = 1: No anonymity
Size = 10: 10% chance of correct guess
Size = 100: 1% chance
Size = 1000: 0.1% chance

In Shielded Pools

More participants → stronger privacy.

6. Privacy Guarantees

What is Protected

✅ Identity: Who you are remains hidden ✅ Amount: Transaction amount is private ✅ Timing: When you participated is obscured ✅ Source Token: Original deposit token is hidden ✅ Deposit-Claim Link: No connection between deposit and claim

What is Not Protected

❌ Information You Reveal: Data you share publicly ❌ Timing Attacks: If pool is small ❌ Off-Chain Metadata: External information

7. TEE (Phala Trusted Execution Environment)

TEE ensures:

Private Execution: Transaction data runs only in private environment
No Visibility: No validator can see contents
Attestation: Cryptographic proof of correct execution
Secure Processing: Swaps and ZK proofs generated in secure enclave
Tamper-Proof: Cannot be modified or interfered with

8. How to Use Shielded Pools

For Users

Deposit via NEAR Intents
System automatically enters pool
Wait for mixing
Claim using ZK proof

For Creators

Enable Privacy: Privacy is enabled by default
Monitor Pool: Track pool metrics
Respect Anonymity: Don’t reveal user identities

9. Best Practices

Do’s

✅ Wait for Mixing: Allow time for transactions to mix ✅ Check Anonymity Set: Verify sufficient size before participating ✅ Keep Private: Don’t share addresses publicly ✅ Trust the System: Privacy is mathematically guaranteed

Don’ts

❌ Don’t Reveal Timing: Don’t announce when you’ll participate ❌ Don’t Use Small Pools: Avoid pools with few participants ❌ Don’t Self-Reveal: Don’t reveal your identity publicly