Singularity's September Confidential DeFi Update

Good morning, good afternoon, and good evening to everyone across the globally distributed DeFi network. We're glad you're here.

The past few months have been exciting, from participating in Token 2049 in Singapore to advancing our protocol and developing our private OTC settlement layer, called OTC Ø 'OTC Zero.' There’s a ton to dig into this month!

As a reminder, Singularity’s mission is to enable liquid funds, venture funds, and institutions to have discretion and maintain the confidentiality of their on-chain strategies in a compliant manner.

Product Update

Upgraded Notes Management Tool

A successful product relies on an intuitive UI and UX, so we've enhanced our Notes Management Tool—our Google Chrome Extension—to improve how users interact with Singularity.

Downloadable here.

Two key advancements include:

1. Asset Aggregation:

   • Users can now seamlessly retrieve, organize, and utilize all their aggregated assets directly within the Singularity interface.

2. Auto Backup:

   • In the top right corner, you can see I highlighted, we’ve added an optional “Auto Backup” feature. This centralized storage tool offers an extra layer of security for users who prefer additional protection in case they lose access to the Notes Management Tool or their device.

   • While Singularity remains non-custodial, we offer this flexibility for users who value added backup options.

Additional Deployments

We have added to our EVM ‘arsenal’ and deployed on Base to offer access to Base liquidity pools and applications so our end users can benefit from on-chain confidentiality.

SDKs now live

Applications and protocols handling sensitive data can now offer their users the optionality to protect their identity. Enabling this feature is as simple as toggling an on/off switch.

This could include on-chain payroll, vesting, launchpads, trading strategies, invoicing, and anything else that contains on-chain sensitive data.

We've received positive feedback and are in advanced discussions to integrate this into various workflows. All on-chain confidentiality processes occur in the backend, allowing users to focus on key aspects without any additional learning curve.

This advancement will greatly enhance our scalability and extend our reach.

For interested projects, please reach out to [email protected] by email or on TG @Jonahzks.

Introducing OTC Ø “OTC Zero”

Traditional OTC trading has long struggled with issues of transparency and trust, as trades are still visible on-chain, and participants remain vulnerable to counterparty risks.

By leveraging zero-knowledge proofs, Singularity aims to provide a solution where trades can occur privately, securely, and without leaving a visible trace on the blockchain.

For Singularity, the end game is clear: to create a private OTC dark pool to ultimately eradicate counterparty risk and ensure complete transaction privacy from start to finish for buyers and sellers.

We’ve put together an example step-by-step flow to illustrate how this would work:

1. Investor A's Position:

   • Investor A holds a $1M position in Token X with 2 years left before it unlocks.

   • Investor A decides they need liquidity or changed their thesis and wants to sell their position.

2. Finding a Buyer:

   • Investor A, either through their network, Singularity, or via a third party, finds a buyer, Investor B, who is interested in acquiring the position.

3. Negotiation:

   • Investor A and Investor B negotiate the terms of the sale offline (e.g., price, and payment terms).

4. Executing the Transaction:

   • Once agreed upon, both parties will go to Singularity’s OTC settlement platform to execute the deal.

   • They initiate the transfer of Investor A’s vesting position in Token X to Investor B.

5. Vesting Contract Set-up:

   • The vesting contract for Token X is transferred on-chain. It is designed to ensure Investor B receives the tokens as agreed and can have peace of mind about the deal's security.

6. Singularity OTC Platform Transfer Set-up:

   • Investor B generates a unique code on Singularity’s OTC page, indicating where the tokens should be streamed.

   • Investor A and Investor B complete their respective obligations on the platform: Investor A transfers the vesting contract, and Investor B transfers the agreed-upon proceeds to Investor A.

7. Completion:

   • The vesting contract is securely set up and privately streamed to Investor B, while Investor A receives the payment.

   • Importantly, this entire process is private, with no trace of the transaction being broadcasted on-chain.

8. Post-Transaction for Investor B:

   • Investor B can use Singularity to:

     • Track the remaining vesting period.

     • Claim tokens in private as they unlock.

     • Optionally sell the tokens once claimed, again in complete privacy from start to finish.

Stay tuned!

If this is of interest, you can reach [email protected] by email or on TG @Jonahzks.

If this is something of interest to you, please reach out to [email protected] or connect with us below:

Token 2049 Recap:

We had an incredible time at Token 2049, connecting with partners, funds, and projects, while co-sponsoring two events.

Catch our panel from the ZK Happy Hour event, co-hosted with Horizen, ZKVerify, and Caldera, where we discussed the ZK landscape and how compliance, privacy, and permissionless DeFi complement one another.

Check it out here:

Integrations, partners, investors, and users are all welcome to connect with the team.

Thanks for reading our September update!

🟢 The Singularity team