Congrats to the winners of @Zama Developer Program Mainnet Season 2. 👏
234 submissions across 3 tracks. 15 winners. Confidential finance, prediction markets, consumer apps, AI agent tooling were built on the Zama Protocol.
Thanks to everyone who participated. Let's take a look at what the community has built 🧵
Have you explored the "FHE operations" tab on Blockscout yet? 🛡️
Let’s break down a live transaction to see how we maintain total on-chain transparency while keeping your sensitive data completely private. 👇
https://t.co/TPhiLzs3yx
Have you explored the "FHE operations" tab on Blockscout yet? 🛡️
Let’s break down a live transaction to see how we maintain total on-chain transparency while keeping your sensitive data completely private. 👇
https://t.co/TPhiLzs3yx
We are rallying the entire ecosystem. Every touchpoint across the token lifecycle will require confidential token support. Integrations from key pillars of crypto infrastructure will catalyze utility, adoption, and growth of the ecosystem.
Confidential finance is taking shape on @zama, with OpenZeppelin under the hood.
Proud that 11 of 12 winning apps build on OpenZeppelin Contracts, with 8 using ERC-7984, the confidential token standard we co-authored with Zama.
ZAMA'S PRIVACY USDC WAS UNFROZEN
A federal judge reversed Circle's $12.5M cUSDC blacklist on @Zama's privacy protocol after a three-day freeze, restoring access to depositors caught in a civil dispute.
Read more here:
https://t.co/MuaXxDOmFF
Keep in mind that none of what happened today has anything to do with privacy. Any contract holding freezable assets could have the same issue. This includes DeFi, staking contracts, bridges, etc.
Thankfully, all the relevant parties have been responsive and helpful in resolving this matter. There is a court hearing on monday morning PT, where we will have a chance to explain our position. Stay tuned!
Thanks to @zachxbt, we found the root cause and will be taking the appropriate actions to unblock the situation. Tldr; this has nothing to do with Zama, or privacy.
The issue stems from an address related to the Overnight Finance hack, which deposited over ~$12.5m USDC into our confidential USDC wrapper contract. Back when they did, their address wasn't on any sanctions list and was not flagged by our KYT tools. However, a court order yesterday night placed a restraining order on various wallets linked to the hacker.
Since there wasn't much utility yet for the cUSDC wrapper, there were very little funds in it, and as a result the vast majority (>99%) of funds in the cUSDC contract came from that single hacker's deposit. Because of this, the court order asked to freeze our wrapper contract to freeze the hacker's fund.
So the sanction was not against Zama, or against privacy. It was a classic restraining order as we see often in DeFi, and we should have been notified so we could have taken the appropriate actions on our side.
I want to be very clear about something: our posture has always been compliant confidentiality, and we will not tolerate any illicit behavior in our protocol. It's also really useless for hackers to try to use Zama to hide their trail as we are precisely not a mixer and we do not obfuscate the sender and recipient, only balances and amounts. Eg you can see the hacker's cUSDC transactions here: https://t.co/yFtdaz5ytU
We are in touch with the various people involved to resolve the situation asap. In the meantime, we will pause the cUSDC, cUSDT and cWETH contracts until we have finished our investigation, identified all addresses linked to this case and taken appropriate action.
I will share a more detailed post-mortem and how we plan to deal with such requests in the future.
Circle's compliance system flagged an external depositor's wallet. Because that wallet held funds in the cUSDC contract, the entire contract was swept into a standard holding freeze.
This is collateral damage, not a sanction against the Zama Protocol.
Our legal team is already engaged to isolate the flagged address and restore access for all unaffected participants as quickly as possible.
Congrats again to all participants and winners.
Rewards for Season 2 will be distributed in cUSDT through the Zama Protocol.
Explore all projects → https://t.co/jxbZgMMrcD
Congrats to the winners of @Zama Developer Program Mainnet Season 2. 👏
234 submissions across 3 tracks. 15 winners. Confidential finance, prediction markets, consumer apps, AI agent tooling were built on the Zama Protocol.
Thanks to everyone who participated. Let's take a look at what the community has built 🧵