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Privacy-Preserving Relayer and Cross-Protocol Liquidity Layer

Develop open coordination and incentive mechanisms for privacy-preserving relayers that can move assets and proofs across protocols and chains, expanding anonymity sets while maintaining non-custodial design principles. Projects under this theme could develop peer-to-peer or intent-based coordination protocols that allow relayers to discover each other, share liquidity, and route privacy-preserving transfers in a verifiable and censorship-resistant way. A strong implementation might include a prototype demonstrating cross-protocol liquidity transfers between at least two privacy systems, together with an economic model showing how relayers manage liquidity and inventory risk without introducing centralized intermediaries. Further outputs could include a toolkit or SDK for testing coordination, matching, and incentive mechanisms, or integrations with existing intent-based bridges or settlement networks. Some projects may also explore atomic settlement mechanisms that remove intermediaries entirely, acknowledging that this may not always be technically feasible. Depending on the level of protocol cooperation, deliverables could range from proof-of-concept prototypes to production-ready implementations. Successful efforts would demonstrate live liquidity coordination across multiple privacy systems, operate without centralized custody or trusted intermediaries, and show compatibility with existing compliance and registry layers from other related RFPs. Strong signs of impact would include open-source SDKs that are adopted, forked, or extended by other teams, as well as public interest from privacy protocol founders seeking to integrate with the framework.

Tags

  • Privacy

Out of Scope

- Centralized custody or escrow - Permissioned relayer networks - Single-protocol bridges lacking coordination - Designs ignoring inventory or regulatory risk - Proposals without privacy-preserving guarantees

Resources

- https://github.com/ethereum/iptf-map/blob/master/patterns/pattern-dvp-erc7573.md - https://github.com/ethereum/iptf-map/blob/master/patterns/pattern-tee-zk-settlement.md - https://www.erc7683.org/ - https://docs.across.to/ - https://github.com/web3privacy/web3privacy/blob/main/only-entries.md - https://hackmd.io/JsGUqOhLQY24SgM0omTjJg - https://hackmd.io/_E-Le3PIQCev1eVnLQPBLg

People gathered around the Ethereum tree
People gathered around the Ethereum tree