Darkpool Deep Dive #3

Welcome to the third edition of the Singularity Darkpool Deep Dive Series, where for the next couple of months, we will take a deeper look into the architecture, vision, and innovations powering Singularity’s institutional-grade on-chain Darkpool orderbook.

In each edition, we unpack a specific layer of the Darkpool - from how we prevent MEV and front-running to the role of cutting-edge cryptography like ZKPs, FHE, and MPC.

Built to offer compliance without compromise, Singularity delivers confidential, capital-efficient execution tailored for institutions ready to trade on-chain - privately, securely, and without leaving a trace.

Last edition, we discussed the Role of the Compliance Oracle in our Darkpool and why it's essential in DeFi. 

This week, we're diving into a core technological component of our Darkpool, Zero-knowledge Proofs (ZKPs).

How ZKPs Power Confidential Trading in Singularity

At the heart of Singularity’s Darkpool is a bold promise: trade with institutional confidence, without revealing what you’re doing, who you’re trading with, or what assets you’re touching - all while remaining fully verifiable and compliant.

This is made possible by a core cryptographic innovation:
ZKPs.

In this edition of the Singularity Darkpool Deepdive Series, we explore how ZKPs serve as the foundation for obfuscated on-chain execution - enabling trades to be private without sacrificing trust or security.

What Are ZKPs?

At a high level, a ZKP allows one party (the prover) to convince another party (the verifier) that something is true - without revealing any of the underlying information.

Imagine proving you know the password to a vault without ever revealing what the password is. That’s the magic of ZKPs.

In blockchain, this cryptographic primitive is used to:

• Prove account balances exist without showing them.

• Prove transactions are valid without exposing details.

• Enable privacy-preserving identity, assets, and actions on public ledgers.

Why ZKPs Matter for a Darkpool

Singularity is a 100% dark orderbook - meaning nothing about an order is visible on-chain:

• Not the asset pair

• Not the order size

• Not the price

• Not the wallet address

ZKPs make this possible by allowing us to prove correctness without exposing contents.

How Singularity Uses ZKPs

Here are three core functions ZKPs serve in the Singularity Darkpool:

Order Legitimacy Without Leaks

Before a trade is matched, the system needs to verify that:

• The order is properly formatted

• The trader has sufficient collateral or assets

ZKPs allow these checks to occur without revealing the underlying values - ensuring the system remains secure and accurate without breaking privacy.

Identity Without Exposure

Singularity integrates with KYB/KYC providers via our Compliance Oracle. But even though identities are verified off-chain, ZKPs help prove the presence of a valid compliance token without exposing user identity or linking wallets.

This ensures:

• Verified access

• No traceable identity leaks on-chain

• Seamless regulatory compatibility

Metadata Obfuscation

Most DeFi transactions leak metadata - even if trade amounts are hidden, details like token type, gas patterns, or contract calls can give away intent.

ZKPs, in combination with our other privacy stack components (FHE, MPC), scrub these leaks clean by:

• Proving encrypted inputs follow protocol rules

• Keeping all trade logic off-chain or shielded

The result is a system where no one - not even validators or indexers - can see what’s being traded.

The Bigger Picture: Privacy That’s Verifiable

ZKPs aren’t just about hiding information - they’re about hiding information without compromising on trust.

They allow Singularity to:

• Maintain data confidentiality

• Ensure trade integrity

• Enable auditable compliance

In a world where institutions need both discretion and confidence, ZKPs make it possible to have both - by design.

Coming Up Next

In Part II of our Privacy Tech Stack series, we’ll explore how Fully Homomorphic Encryption (FHE) allows encrypted orders to be processed and matched - without ever needing to decrypt them.

Thanks for reading our third edition of Singularity’s Darkpool Deepdive series.

In the subsequent deep dives, we’ll take you behind the curtain to explore additional core components that power Darkpool.

Here’s link to this piece on our blog here.

How to Participate

To learn how to participate please head to the following link here.

We are currently integrating market makers for our Darkpool and are in discussions with several others. If you are interested in supporting our Darkpool, please connect with us.

We offer maker and taker incentives that we can share as well.