The prover, the verifier and the verifier auditor
The zkMakers protocol leverages zk-SNARKs and the Circom language to enable market makers to prove the liquidity they provide without revealing sensitive trading information. The system is designed to be fully decentralized, transparent, and scalable.
The system enables a prover to prove that they have a certain piece of information (e.g. liquidity provided) without revealing the underlying data (e.g. trading details).
In the context of zkMakers, market makers can generate a proof using zk-SNARKs that they have provided liquidity to the system, without revealing specific details about their trades. This proof can then be verified by any node on the network, providing assurance to other participants that the liquidity provided is legitimate.
In zkMakers the user acts as the prover and generates a proof of liquidity using their trading information. The proof is then sent to an oracle for verification.
Users run the zk-proofs to verify that certain events have occurred on a given exchange or platform. These events include information about the execution of a specific trade or liquidity provisioning exercise.
To decentralize the zk oracles or verifiers, the system will follow the Optimism Oracle approach approach by forming a network of verifiers. This approach utilizes a trust-minimized consensus mechanism that relies on optimistic assumptions about the data being submitted to the oracle. The Optimistic Oracle approach allows for quick and efficient resolution of disputes that may arise during the verification process, while also maintaining the security and reliability of the zkMakers oracle mechanism.
To add an extra layer of trustless on the network of Verifiers, the protocol has the Verifier Auditors that will make sure that Verifiers are acting in a good faith.
To become and Oracle you need to hold at least 2.5M veZKM to the staiking protocol.