Decentralized Finance (DeFi) in the Polkadot ecosystem is still a newborn. Privacy is essential to the success and prosperity of DeFi. The Raze Network will serve as a vital infrastructure for the future development of privacy-preserving DeFi in the Polkadot ecosystem. The Raze Network will not only preserve the privacy of the Polkadot DeFi ecosystem, but will also significantly increase the liquidity of the Polkadot ecosystem. The closest product to the Raze Network is the Manta Network, which is a privacy-preserving DEX system. Our proposal differs from theirs in the following ways:
The Zether framework is designed for the Ethereum account-based model, and hence it naturally facilitates the cross-chain private payment of ERC-20 tokens in the Polkadot ecosystem. Since all the aforementioned smart contract modules are supposed to be imported as Substrate-based modules, they will also be compatible with the tokens issued in the Polkadot ecosystem, such as DOT or Kusama. Put simply, Raze will improve liquidity of Polkadot due to its cross-chain interoperability with chains such as Ethereum.
Our product is much more homogenous in the sense that it supports all DeFi products in the Polkadot system. In addition Razealso supports anonymity mining, a vital liquidity function of DeFi. In contrast, the Manta Network focuses solely on developing the private DEX system, which limits the scope of its application scenarios severely.
From the technical perspective, the underlying zero-knowledge proof scheme for the Manta Network requires trusted setup, which is why they require a trust ceremony. In contrast, the zero-knowledge proof scheme that we adopt does not require any trusted setup. All the public parameters of our system can be randomly sampled from the underlying group in a totally transparent fashion, which is much more in line with both sound network design and decentralization.