zCloak Network Partners with dForce to Develop Privacy-Preserving Identity Service for DeFi
We are thrilled to announce that zCloak Network will work with dForce to integrate privacy-preserving identity service with DeFi. The partnership will focus on the use of real-world identity in accessing DeFi services while preserving user privacy.
dForce is a DeFi matrix that enables lending, trading, bridge and soon also AMM on 7 different blockchains to support the decentralized stablecoin $USX.
$USX is the first decentralized stablecoin natively integrated with dForce’s DeFi matrix, featuring permission-lessness, non-custody, high capital efficiency, and multi-chain liquidity.
$USX’s pegging mechanism is mainly maintained by Liquidity Stability Reserve (LSR), which enables 1:1 swap between USX and a number of supported stablecoins including USDC, USDT, DAI. In addition, powered by the Protocol-Direct-Liquidity-Provision (PDLP) module, $USX’s interest rate on integrated lending protocols can be anchored within a capped range. When market demand for $USX is high and borrowing interest is pushed up, more $USX liquidity will be supplied to lending protocols to lower the utilization rate, making it less expensive to borrow $USX which can help to restore its peg. dForce also allows users to mint USX against a variety of assets with fixed interest rates through dForce Vault. Each vault may implement different risk parameters based on the specific collateral asset supported, which is jointly decided by $DF holders through governance.
Under these circumstances, if dForce provides its users with a zk-involved alternative to not only be able to prove some attributes regarding their real-world identity, but also in a completely self-sovereign and decentralized way, its DeFi matrix can offer more personalized services such as a required collateral and an interest rate based on a user’s personal credit reputation with less friction.
zCloak Network provides a full suite of W3C compatible DID and Verifiable Credential services with zkid.app. Users can store their real-world identity information as attested credentials in their identity wallet. Usually, this information can not be directly used on a blockchain due to privacy concerns. As an alternative, a zero-knowledge proof can be generated based on user data and verification requirements. And a zk-SBT can be minted using this ZKP and dropped to user wallet address. This way, instead of saying you are Jack, 28, from Canada, you can use a zk-SBT to say you are a qualified investor, older than 20 and from North America.
The zCloak identity credential can also be used for less serious use cases. For example, dForce can issue employment credentials to its employees to prove their work experience. Community loyalty credentials can be issued to active members of its community. These credentials can be directly used in off-chain scenarios by e.g. showing a QR code. They can also be converted to on-chain SBT when needed for direct interoperability with a smart contract.
In conclusion, by collaborating with dForce, zCloak Network leverages zero-knowledge proof technology to provide a unique set of DID protocols and infrastructure for dForce and its users. There will be implementation of both parties’ technology and products within this partnership, mainly regarding identity verification, conveying trustworthiness, and privacy protection. Both zCloak Network and Scroll are bringing Web3.0 solutions to projects and users, and we believe our collaboration will drive higher trust within the Web3.0 world.
About dForce
dForce is a decentralized stablecoin protocol powered by an integrated DeFi matrix (assets, lending, trading, and bridge). dForce is currently available on seven different blockchains (Ethereum, Arbitrum, Optimism, BSC, Polygon, Avalanche, KAVA, and now also Conflux) and boasts $200 million in Total Assets.
dForce protocols have undergone extensive smart contract reviews by a number of best-in-class audit firms, including Trail of Bits, ConsenSys Diligence, Certora, Quantstamp, PeckShield, Slowmist, SECBIT, with a bug bounty launched through Immunefi.
Learn more about dForce:
Website | Twitter | Medium | Forum | Telegram | Discord | Github
About zCloak Network
zCloak Network is a privacy-first DID and verifiable computation infrastructure. It aims to deliver the Web3 dream of Self-Sovereignty by moving both the storage and the computation of user data into user device from centralized servers. The integrity of user computation is proven by a STARK-based ZK-VM in a browser extension. zCloak’s W3C compatible DID system can mirror real-world legal status and reputation in DeSoc. With zCloak Network, people can use their real-world data for e.g. DeFi, Identity, Biometric applications without disclosing their privacy. zCloak Network is chain-agnostic — its identity and ZKP service can be served for most public blockchains.
