Labyrinth: Empowering User-owned privacy in public Blockchains - A Look at Our Latest Progress

Labyrinth is a multi-chain modular framework designed to make private transactions easy and secure on EVM chains. Our platform enables shielded (private) accounts while meeting compliance requirements through our decentralized network. We're committed to making compliant privacy the standard for all on-chain activities, ensuring every EVM chain address can have a private, compliant account layer.

For developers, our plug-and-play SDK allows them to effortlessly integrate privacy features into dApps. Whether it’s Transfers, Swaps, Staking, Yield Farming, Lending, Payroll, Token Vesting, or other on-chain integrations, Labyrinth helps keep users’ balances and actions private while simplifying the complexities of zero-knowledge proofs (ZKPs) and compliance.

Let’s dive into the latest updates on the protocol. After the Shielding Summit event in Brussels, we began collaborating with other projects and announced our first strategic partnership with 0xbow. 0xbow is a leading project that provides Association Sets for on-chain compliance and AML, enabling on-chain privacy to be legitimized. It is backed by notable individuals and groups like Vitalik and Bankless Ventures. These ZK-proof-based solutions let users prove non-association with illicit activities or sanctioned addresses. This represents a significant advancement in promoting privacy as the norm in DeFi.

Last month we also started community-only private testing of a user-facing app to get early feedback and improve the protocol as user-friendly UX and efficiency are our top priorities. Right now we are live on Optimism and Ethereum testnet. Once the protocol is tested across current networks, a template will be created to streamline the process of adding and adapting it to other chains in the future, ensuring quick and easy integration. You are also welcome to test the application as a part of the early private beta phase.

Right now, once the user’s assets are inside the Labyrinth-shielded pool, users can make transfers to other Labyrinth users with complete anonymity and confidentiality, never leaving the EVM blockchains, nor needing to withdraw assets. Any amount can be sent, received, and added to a balance within Labyrinth, completely invisible to outside observers: Labyrinth to Labyrinth transfers will even be completely hidden from block explorer by hiding details like sender/receiver address, asset value, and asset type. Along with this users have compliance options like downloading their transaction data just by bank and revealing it to a specific person/entity for purposes like taxation. This level of privacy and UX is possible only with the Labyrinth Protocol. 

Today, we are rolling out new updates to the Labyrinth protocol, with significant improvements. These enhancements are a direct result of valuable feedback from our early users who have been rigorously testing the features in our private beta program. Below, we highlight the key improvements now available to our private testnet users.

Swap Feature Added: You can now swap tokens directly within the protocol, With a bundler, integrated ENS support plus easy fee payments stablecoin like USDC. We’ve integrated Uniswap to kick things off, and in the future, we’ll be adding more options to help you get the best rates.

Lower Gas Fees: With the upgrade of the zk-based queued Merkle tree & reduced size of shielded transaction memo we’ve managed to cut gas usage by 50%-55%. This means your transactions will cost less.

Compliance Options: We understand that compliance is important for private transactions and it's our top priority to provide it without the user losing its control over their asset. We updated selective de-anonymization compliance with multiple trusted revoker options to choose from, giving you control over who can initiate the revoke process for compliance purposes in specific criteria. More details will be shared in the upcoming, blog for an overview of how this approach for compliance works can be found here.

There is so much to come: In the coming days, you’ll be able to do more with Labyrinth. We’re working on integrating features like staking with Lido, earning yield through Aave, and even batch transactions for payroll or token vesting.

Our vision is to do all transaction activities on-chain with privacy. With the support of community and feedback, we can bring privacy to the blockchain world. Labyrinth is only getting started, whether you are a power DeFi user, institution, business or just holding an asset in crypto with minimal on-chain interactions, labyrinth helps you give privacy into your hand with full control for various use-cases. Check our website for more information. If you're interested in integrating SDK to provide private DeFi solutions into your product, we’d love to hear from you. Join our community on Discord to dive into conversations, ask any questions, or provide feedback. follow our updates on Twitter, or reach out via email for any queries.