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Integrate shielded pools to preserve transferred-amount privacy

Develop and integrate a multi-asset shielded pool and associated zero-knowledge proof mechanisms into the Cycles protocol to preserve the privacy of transferred amounts and balance changes while maintaining obligation-graph privacy and atomic multilateral settlement guarantees.

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Background

The paper explains that, although obligation graphs remain private under the proposed architecture, balance changes tied to public assets can leak information unless shielded transfers are supported. A dedicated multi-asset shielded pool would allow confidential on-chain asset movements verified by ZKPs.

The authors explicitly leave this extension for future work, noting that such integration would require additional client- and enclave-side computation and verifier logic while still relying on TEEs for graph privacy.

References

As noted in Section~\ref{privacy-architecutre}, Cycles can also be extended to utilize shielded pools to preserve privacy of transferred amounts, though we leave this also for future work.

Cycles Protocol: A Peer-to-Peer Electronic Clearing System (2507.22309 - Buchman et al., 30 Jul 2025) in Discussion, Privacy