Uniswap v4 Confidential Hook

Overview

Uniswap v4 Confidential Hook is a privacy-preserving hook implementation for Uniswap v4 that leverages Zero-Knowledge (ZK) Proof to enable confidential trading with compliance, policy, and strategy verification.

Built with Noir ZK circuits and Solidity smart contracts, this hook ensures that swap and liquidity operations meet specific criteria without revealing sensitive transaction details on-chain.

Key Features

• ZK-Powered Privacy: Utilizes Noir circuits to generate and verify zero-knowledge proofs for confidential transactions
• Triple Verification System:
  • Compliance Verification: Ensures transactions meet regulatory compliance requirements
  • Policy Verification: Validates adherence to custom trading policies
  • Strategy Verification: Confirms execution aligns with predefined trading strategies
• Uniswap v4 Hook Integration: Seamlessly integrates with Uniswap v4's hook architecture
• BeforeSwap & BeforeAddLiquidity Hooks: Validates ZK proofs before allowing swaps and liquidity additions
• Honk zkProof System: Leverages Barretenberg's Honk verifier for efficient on-chain proof verification

Use Case

• Institutional Trading: Allows institutions to execute trades while maintaining confidentiality and proving compliance
• Privacy-Preserving DeFi: Enables traders to protect their trading strategies while demonstrating adherence to platform policies
• Regulated Market Access: Facilitates access to DeFi markets with built-in compliance verification
• Confidential Liquidity Provision: Lets liquidity providers add funds while keeping position sizes and strategies private

Tech Stack

• ZK Circuit: Noir (v1.0.0-beta.18)

  • ZK Circuit Library: @aztec/bb.js (v3.0.0-devnet.6-patch.1) & @noir-lang/noir_js (v1.0.0-beta.18)
  • Incremental Merkle Tree (IMT) Library: @zk-kit/imt (v2.0.0-beta.8)

• Smart Contract: Solidity

• Blockchain: Arbitrum Sepolia Testnet

Architecture & Userflow

                ┌───────────────────────────┐
Enterprise      │ Private intent + identity │
(Institution)   └────────────┬─────────────-┘
                             ▼
                 ┌──────────────--───-┐
                 │ Noir Circuit(s)    │
                 │                    │
                 │ - Policy Proof     │
                 │ - Strategy Proof   │
                 │ - Compliance Proof │
                 └─────────┬──────────┘
                           │ proof + publicInputs
                           ▼
                  ┌─────────────────────────────────┐
                  │ Uniswap v4 Confidential Hook    │
                  │                                 │
                  │ _beforeSwap()                   │
                  │ _beforeAddLiquidity()           │
                  │    　　　▼                       │
                  │ - verifyComplianceProof()       │
                  │ - verifyPolicyProof()           │
                  │ - verifyStrategyProof()         │
                  └─────────┬───────────────┬───────┘
                            ▼               ▼        
                  ┌──────────────────┐   ┌────────┐
                  │ Pool Liquidity   │   │ Swap   │
                  └──────────────────┘   └────────┘

Deployed Contract Addresses (on Unichain Sepolia)

Newly deployed-contract addresses (on Unichain Sepolia) by this project

| Contract | Address | |----------|---------| | HonkVerifier (of the Compliance ZK circuit) | 0x786B31a1E67a9745f848DFfb6C54a1d8aCCB8F1c | | HonkVerifier (of the Policy ZK circuit) | 0x44B3ae18A72A44b17CD762C48f5206AD4F4A17C9 | | HonkVerifier (of the Strategy ZK circuit) | 0xBb058974aF8cC8A3606bFE952e234Bd8a5E11858 | | ComplianceProofVerifier | 0x1aA877Bfb71e7eC24224415a30E1E0345Dc1d4C0 | | PolicyProofVerifier | 0x132DB810D64ceF15dDA378b58069B2B3daDC434B | | StrategyProofVerifier | 0x98165b549582844227f1CB08375bDf099A991406 | | UniswapV4ConfidentialHook | 0x05f2ba624e4121Ac8D5416f7a33291A010588880 |

Existing deployed-contract addresses (on Unichain Sepolia)

| Contract | Address | |----------|---------| | PoolManager | 0xC81462Fec8B23319F288047f8A03A57682a35C1A | | USDC | 0x31d0220469e10c4e71834a79b1f276d740d3768f | | WETH | 0x4200000000000000000000000000000000000006 |

DEMO Video

• DEMO of the End-To-End script using ./scripts/e2e.ts: https://www.loom.com/share/e0531eb349aa4662a9949e6a37a6d276

Installation

Noir ZK circuit

• Circuit Test

cd circuits/invoice-refactoring

sh circuit_test.sh

• Circuit Artifacts & Solidity Verifier generation

cd circuits/invoice-refactoring

sh build.sh

Smart Contract

1. Install dependencies:

cd contracts
forge install

2. Compile contracts:

forge build

3. Run tests:

IN PROGRESS

4. Deploy contracts on Unichain Sepolia:

cd contracts/scripts/deployments/unichain-sepolia

sh deploy.sh

Run the e2e script

• Install the node modules with the bun CLI

cd scripts
bun install

• e2e script

cd scripts
bun run e2e

References

• ZK circuit in Noir (powered by Aztec)

  • Noir Documentation

  • Barretenberg Documentation

  • noir-examples/solidity-example

    • js/generate-proof.ts (How to use the verifierTarget: "evm"): https://github.com/noir-lang/noir-examples/blob/master/solidity-example/js/generate-proof.ts#L16

  • Recursive Proof:

    • Doc：https://barretenberg.aztec.network/docs/explainers/recursive_aggregation/
    • noir-examples/recursion：https://github.com/noir-lang/noir-examples/tree/master/recursion

• Uniswap v4 Hook

  • Template: https://github.com/uniswapfoundation/v4-template

• Unichain

  • Fancet: https://docs.unichain.org/docs/tools/faucets
  • WETH: You can convert your Narive ETH to the WETH by calling the deposit() in the Block Explorer: https://unichain-sepolia.blockscout.com/address/0x4200000000000000000000000000000000000006?tab=read_write_contract
  • USDC: https://faucet.circle.com/

• Uniswap v4

  • Uniswap v4 docs
  • v4-periphery
  • v4-core
  • v4-by-example