Tzunami 🌊 — Product Requirements Document (PRD)

Stealth, Compliant Finance on Mantle
Live Contract (Mantle Sepolia):
https://sepolia.mantlescan.xyz/address/0x2320635453d2a4e941ba83f1383aa7f110573b96

Executive Summary

Tzunami is a privacy-preserving, regulation-aware financial platform that enables users to transact on-chain without exposing balances, flows, or identities, while still satisfying compliance requirements.

It unifies two traditionally opposing worlds:

• Zero-knowledge identity and compliance (Self.xyz on Celo)

• Encrypted financial execution (fhERC and stealth execution on Mantle)

Tzunami allows users to move value invisibly, while institutions and regulators retain cryptographic assurance that every participant is compliant. It replaces trust and disclosure with proofs.

The platform is live across Celo and Mantle, providing a full end-to-end system for compliant private finance.

Track Alignment — ZK & Privacy

Track: ZK & Privacy
Judging Criteria Addressed:

• Privacy-preserving solutions with regulatory compatibility

• Selective disclosure, ZK-KYC, and yield-proof mechanisms

Tzunami is purpose-built for this track.

How Tzunami Meets the Criteria

Privacy-Preserving with Regulatory Compatibility

• Self.xyz ZK-KYC on Celo enforces age and OFAC compliance without exposing PII.

• On-chain verifiers confirm eligibility using proofs, not documents.

• Regulators and institutions receive cryptographic guarantees instead of raw data.

Selective Disclosure

• Encrypted balances ensure amounts are never public.

• Auditor-compatible encrypted logs enable controlled, scoped disclosure when required.

• Users reveal only what is necessary, to whom it is necessary, and nothing more.

ZK-KYC

• Identity is proven via zero-knowledge proofs.

• Users demonstrate compliance properties (age, sanction status, uniqueness) without revealing identity.

• Stealth identity support prevents linkage across transactions.

Yield-Proof and Financial Correctness

• All financial operations on Mantle are enforced by Groth16 proofs.

• Deposits, transfers, withdrawals, and swaps prove correctness without exposing values.

• Nullifiers prevent double-spending while preserving anonymity.

Tzunami is a live system where compliance is proven, privacy is enforced, and financial correctness is verified cryptographically.

System Architecture

Tzunami operates as a cross-chain system with clear domain separation:

• Celo: Identity, compliance, and zero-knowledge verification

• Mantle: Encrypted balances, private transfers, and stealth execution

Core Layers

• Frontend (Next.js)

  • KYC dashboard

  • Encrypted wallet interface

  • Proof lifecycle management

  • Stealth swap UX

• Backend (Express)

  • Self.xyz orchestration

  • Session and webhook handling

  • Proof submission pipelines

  • Rate limiting and health monitoring

• Blockchain

  • Celo: SelfKYCVerifier, StealthKYCVerifier

  • Mantle: UniversalEncryptedERC, Registrar, TzunamiPool

Mantle serves as Tzunami’s execution layer, where all private financial activity occurs.

Mantle’s Role

Mantle is the foundation of Tzunami’s private execution environment.

• Encrypted balances are stored and updated on Mantle

• Zero-knowledge proofs are verified on Mantle

• Private transfers and withdrawals occur on Mantle

• Stealth swaps are executed on Mantle via the Tzunami Pool

The deployed Tzunami Pool contract:

implements an intent-based batch execution system. Users create swap intents, others contribute, and the pool executes a single aggregated trade via an adapter against real liquidity. Outputs are distributed pro-rata.

Mantle provides:

• Low gas costs for proof verification

• Fast finality for user experience

• EVM compatibility for DeFi integration

• Ethereum-grade security for institutional trust

Tzunami positions Mantle as the private settlement layer for compliant DeFi.

Core Components

1. Identity & Compliance (Celo)

• Self.xyz zero-knowledge KYC

• Age verification and OFAC enforcement

• Stealth identity support

• On-chain verifiers

Users prove regulatory eligibility without revealing personal data. The chain learns only that a user is compliant.

2. Encrypted Finance (Mantle – fhERC)

• Encrypted ERC20 and native balances using ElGamal

• Groth16 proofs for deposit, transfer, and withdrawal

• Nullifier-based double-spend prevention

• Auditor-compatible encrypted logging

Balances never exist in plaintext on-chain.

3. Stealth Execution (Mantle – Tzunami Pool)

Capabilities:

• Intent-based swap creation

• Multi-user contribution

• Batched execution via trusted adapters

• Pro-rata distribution of outputs

• Deadline enforcement and reentrancy protection

This enables private aggregation and execution against real liquidity without exposing individual user flow.

User Journey

1. Identity Verification

   • User completes zero-knowledge KYC via Self.xyz

   • Compliance proof is recorded on Celo

2. Cryptographic Registration

   • User derives a Baby JubJub key

   • Registers in the encrypted token system

3. Private Asset Entry

   • User deposits assets on Mantle

   • Funds become encrypted balances

4. Private Operations

   • Transfer encrypted balances

   • Create and join stealth swap intents

   • Execute batched swaps via Tzunami Pool

5. Optional Exit

   • User withdraws to standard ERC20 using a proof

At no point are balances or flows publicly revealed.

Functional Specification (Tzunami Pool)

• Create Intent

  createIntent(tokenIn, tokenOut, minOut, deadline, policy)
  

• Contribute

  contribute(intentId, amount)
  

• Execute

  execute(intentId, adapter, routerCalldata, expectedMinOut)
  

Properties:

• Multi-user batching

• Adapter-based execution

• Pro-rata settlement

• Owner-controlled adapter registry

• Reentrancy protection

• Deterministic intent identifiers

Security and Compliance

• OpenZeppelin primitives for ownership and reentrancy protection

• SafeERC20 for all token interactions

• Zero-knowledge enforcement of identity requirements

• Nullifier-based replay protection in encrypted flows

• Backend rate limiting and schema validation

• Circuit artifact verification in the frontend

The system enforces compliance cryptographically, not procedurally.

Hackathon Outcome

Tzunami is a fully operational platform:

• Zero-knowledge KYC deployed on Celo

• Full Self.xyz integration across backend and frontend

• Production-grade backend orchestration

• Encrypted token stack live on Mantle

• Proof-aware frontend for all user flows

• Tzunami Pool deployed on Mantle

• End-to-end wiring of intent, contribution, execution, and settlement

This is not a prototype script.
It is a working, cross-chain, privacy-preserving financial platform.

Vision

Tzunami demonstrates that privacy and compliance are not opposites.

With zero-knowledge proofs and encrypted execution, DeFi can be:

• Private for users

• Verifiable for institutions

• Acceptable for regulators

Tzunami establishes a new standard for on-chain finance:
invisible execution with cryptographic legitimacy.