DARKSOL PROTOCOL

1. ABSTRACT

DarkSol is a non-custodial, privacy-preserving exchange protocol built on the Solana blockchain. By combining Zero-Knowledge Proofs (ZKPs) with an off-chain Dark Matching Engine (DME), DarkSol enables institutional-grade trading without revealing order details, volume, or trader identity to the public ledger.

Uniquely, DarkSol introduces an Agentic Layer—a natural language interface ("Vibe Coding") that compiles user intent into cryptographically secure circuits. This allows for the deployment of autonomous "Hunter Agents" that scrub liquidity and execute strategies inside Trusted Execution Environments (TEEs), solving the "human latency" problem inherent in manual trading.

2. THE PROBLEM: THE GLASS HOUSE

Public blockchains operate on a principle of radical transparency. While beneficial for auditability, this transparency is catastrophic for trading strategy.

2.1 The MEV Tax

On standard AMMs (Automated Market Makers) and public order books, every order is broadcast to the mempool or public state before execution. Sophisticated searchers (MEV bots) analyze this data to:

• Front-run: Buying an asset immediately before a large buy order to sell it back at a higher price.
• Sandwich: Trapping a user's trade between buy and sell orders to extract maximum slippage.

2.2 Strategy Leakage

Institutional traders cannot accumulate significant positions on-chain without signaling their intent to the entire market. This "signaling risk" forces large capital to remain off-chain (CEXs) or suffer slippage on-chain.

3. THE SOLUTION: DARKSOL ARCHITECTURE

DarkSol effectively separates execution from disclosure. The network verifies that a trade is valid without knowing what the trade is.

3.1 State Layer: Shielded UTXOs

Unlike Solana's standard Account Model, DarkSol utilizes a UTXO (Unspent Transaction Output) model stored in Compressed Merkle Trees (state compression).

• Minting (Shielding): Users deposit public SOL/SPL tokens into the DarkSol Program. The program consumes the public tokens and mints an encrypted "Note" (UTXO) into the Merkle Tree.
• Burning (Unshielding): Users prove ownership of a Note to withdraw funds back to a public wallet.

3.2 The Order: "The Proof is the Order"

In DarkSol, an "order" is not a data packet containing "Buy 100 SOL." It is a Zero-Knowledge Proof (Groth16) generated client-side.

• The Proof Asserts: "I possess a valid Note in the Merkle Tree worth $X, and I authorize the spending of this Note IF AND ONLY IF I receive Asset $Y at Price $Z."
• Privacy: The proof reveals neither the spender's identity nor the specific Note being spent (via Nullifiers).

3.3 The Relayer: Off-Chain Matching

To achieve sub-second latency, matching occurs off-chain via the DarkSol Sequencer.

• Ingest: The Sequencer receives ZK-Proofs from various agents.
• Match: It attempts to match Buy Proofs with Sell Proofs based on price/size constraints.
• Settlement: Once matched, the Sequencer submits a compressed state update to the Solana mainnet. The on-chain Verifier Program confirms the proofs are valid and atomically swaps the encrypted Notes.

4. THE AGENTIC LAYER

DarkSol lowers the barrier to algorithmic trading through "Vibe Coding"—an Intent-to-Circuit compiler.

4.1 Vibe Coding (Intent Compilation)

Writing ZK circuits is complex. DarkSol abstracts this via an LLM-driven interface.

• Input: User provides natural language intent (e.g., "Accumulate SOL if RSI < 30 and Volume is spiking, but keep orders under 100 SOL.")
• Compilation: The engine translates this intent into a specific ZK-Circuit configuration and an executable strategy file.
• Safety: The LLM never touches private keys. It only configures the logic parameters. The signing and proof generation happen locally on the user's device.

4.2 Hunter Agents

Users deploy these compiled strategies as "Agents."

• Execution: Agents run locally or in delegated TEEs.
• Scrubbing: They monitor the state of the Dark Pool and public chain data 24/7.
• Striking: When conditions are met, the Agent generates the ZK-Proof and transmits it to the Relayer instantly.

4.3 The Ghost Router (Hybrid Liquidity)

To solve the "cold start" liquidity problem of dark pools, DarkSol implements the Ghost Router.

• If an Agent cannot find a match within the Dark Pool, it can optionally route the trade to public aggregators (Jupiter/Raydium).
• Anonymization: The trade is routed through a monolithic Protocol Relay Contract, mixing the user's funds with protocol liquidity to obfuscate the original sender before hitting the public DEX.

5. TOKENOMICS: THE $DARK ECONOMY

The $DARK token is a utility asset designed to power the infrastructure of the protocol. It is not a governance token; it is fuel.

5.1 Utility A: Compute Credits (Fuel)

Running continuous "scrubbing" logic and generating Zero-Knowledge proofs requires significant computation.

Mechanism: Users stake $DARK to generate "Fuel Credits." These credits are burned to power active Hunter Agents in the TEE network. Without fuel, an Agent goes offline.

5.2 Utility B: Sequencer Priority

During periods of high volatility, the Sequencer queue may become congested.

Mechanism: Holders of $DARK receive Priority Slotting. Their proofs are processed at the front of the block, ensuring execution during critical market movements.

5.3 Utility C: Protocol Efficiency

Privacy has a cost (gas + compute).

Mechanism: Users who pay Protocol Fees in $DARK (instead of SOL/USDC) receive a rebate on shielding and unshielding costs.

6. BUILD LOG (ROADMAP)

DarkSol follows a kernel-style development cycle.

7. CONCLUSION

DarkSol represents the end of the "Glass House" era of DeFi. By leveraging Solana's speed and ZK-compression, we provide the first venue where institutional capital can operate efficiently on-chain.