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.

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