Can ZKPs Be Used to Privately Execute a Perpetual Swap Trade?
Yes, ZKPs can be used to hide sensitive trading information in a perpetual swap, such as the size of the position, the leverage used, and the liquidation price. A ZKP can prove that the trade was executed according to the protocol's rules and that the user meets margin requirements, all without exposing the proprietary trading strategy to the public ledger.
Glossar
ZKPs
Cryptography ⎊ Zero-Knowledge Proofs are a class of advanced cryptographic protocols that enable a party to demonstrate the truth of a statement to a Verifier without disclosing the underlying secret information.
Perpetual Swap
Mechanism ⎊ Perpetual swaps, within cryptocurrency markets, represent agreements to exchange cash flows based on the difference between a cryptocurrency’s current price and a user-defined price, perpetually, without an expiration date.