Veilocity
A Private Execution Layer for Confidential Transactions on Mantle
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Description
Veilocity is a privacy infrastructure layer purpose-built for Mantle L2 that solves one of blockchain's most critical limitations: the complete lack of financial privacy on public ledgers. Every transaction on Ethereum and its L2s is visible to everyone - exposing balances, counterparties, and transaction patterns to front-runners, competitors, and chain analysts.
The numbers tell the story: over $1.3 billion was extracted through MEV in 2023 alone - value stolen because transactions are public before they're confirmed. Institutional OTC desks handle $10+ billion monthly in crypto trades, yet every large order leaks information that sophisticated actors exploit. This isn't just a privacy concern; it's an economic attack vector that costs users real money every single day.
This transparency makes blockchain adoption impractical for institutions, enterprises, and privacy-conscious users. Companies can't pay salaries on-chain without exposing compensation to competitors. Trading firms can't execute strategies without being front-run. Regular users can't transact without their entire financial history being one click away on a block explorer.
The Solution: Private Execution, Public Settlement
Veilocity introduces a novel architecture that cleanly separates private execution from public settlement. The core insight is that you don't need to see transaction details to verify they're correct - zero-knowledge proofs let us prove correctness without revealing anything else.
How it works:
1. Deposit: Users deposit MNT into a shielded pool by submitting cryptographic commitments to the VeilocityVault smart contract on Mantle. The commitment is Poseidon(secret, amount)- observers see that someone deposited, but cannot link it to an identity.
2. Private Transfer: Inside the pool, transfers happen entirely off-chain - zero transactions, zero events, zero gas, zero visibility. The sender proves they have sufficient balance and generates a nullifier (preventing double-spends) without revealing which account they control.
3. Withdrawal: Users generate a ZK proof demonstrating ownership of funds without revealing their account. The contract verifies the proof (~300k gas, ~$0.01 on Mantle) and releases funds. The withdrawal cannot be linked to any specific deposit - the cryptographic relationship is broken by design.
Technical Architecture & Stats
The system is built on battle-tested cryptographic primitives optimized for the EVM:
COMPONENT | SPECIFICATION | WHY IT MATTERS |
Hash Function | Poseidon (BN254) | ~250 constraints vs ~30,000 for SHA-256 in circuits |
Merkle Tree | Depth 20 | Supports 1,048,576 accounts with 20-hash proofs |
Proof System | UltraPlonk | ~2KB proofs, ~300k gas verification, universal setup |
Curve | BN254 (bn128) | Native Ethereum precompiles for efficient verification |
Circuit Complexity:
Deposit circuit: ~500 constraints (sub-second proving)
Withdrawal circuit: ~8,000 constraints (2-5 second proving)
Transfer circuit: ~15,000 constraints (5-10 second proving)
Performance on Mantle:
Deposit gas cost: ~60,000 gas (~$0.004)
Withdrawal gas cost: ~300,000 gas (~$0.02)
Private transfer cost: $0 (completely off-chain)
Why Mantle? Why Now?
What makes Veilocity unique is its position as infrastructure rather than a competing chain. We don't ask users to bridge to a new ecosystem or trust a new consensus mechanism. Veilocity adds privacy to Mantle's existing security model - users inherit Ethereum's finality guarantees through Mantle's rollup architecture while gaining institutional-grade financial privacy.
Mantle is the ideal home for privacy infrastructure:
Low gas costs make privacy practical - withdrawals cost cents, not dollars
$500M+ TVL and growing DeFi ecosystem with zero native privacy solutions
Ethereum security inheritance through the rollup architecture
First-mover advantage - no other privacy layer exists for Mantle
Use Cases Unlocked
Veilocity enables use cases previously impossible on public chains:
Private OTC Settlement: Large trades execute without leaking to front-runners or competitors
Confidential Payroll: Companies pay salaries without exposing compensation structures
Supply Chain Finance: B2B payments without revealing business relationships or volumes
Private DeFi: Lending positions protected from liquidation hunters, trading without copy-traders
Gaming Economies: In-game currencies and NFT ownership hidden from manipulation
Treasury Management: Corporate holdings invisible to competitors
Security Model and Cryptographic Guarantees (Trustless)
PROPERTY | MECHANISM | ADVERSARY |
Fund Safety | ZK proof required for withdrawal | Cannot forge valid proofs |
No Double-Spend | Nullifier registry on-chain | Same nullifier rejected |
Balance Integrity | Circuit constraint b ≥ a | Cannot prove false statement |
Ownership Auth | Secret in proof H(s)=pk | Only holder can derive pk |
Unlinkability | Separate hash constructions | Preimage resistant |
What attackers cannot do:
Forge proofs (cryptographically impossible)
Link deposits to withdrawals (hash preimage resistance)
See account balances (never on-chain)
Double-spend funds (nullifier tracking)
Front-run private transfers (completely off-chain)
It is still in MVP mode, where we have achived the stats locally, it is not perfect. Good things take time.
Link: https://www.veilocity.xyz/
Progress During Hackathon
During this hackathon, we built Veilocity from concept to fully functional prototype with 78+ passing tests across all components. We implemented the complete cryptographic stack: three Noir circuits (deposit ~500 constraints, withdrawal ~8,000 constraints, transfer ~15,000 constraints) with Poseidon hashing and Merkle tree verification at depth 20 supporting 1 million accounts. On the smart contract side, we deployed VeilocityVault.sol to Mantle Sepolia with full deposit/withdraw functionality, nullifier tracking for double-spend prevention, state root history management, pausability, and emergency withdrawal mechanisms - backed by 29 comprehensive Foundry tests. The Rust implementation spans four crates totaling thousands of lines of production-quality code: veilocity-core for state management and cryptographic primitives, veilocity-prover for witness generation and Noir/Barretenberg integration, veilocity-contracts for ABI bindings and real-time event indexing, and veilocity-cli providing a full-featured command-line interface with wallet encryption (AES-256-GCM + Argon2id), deposit/transfer/withdraw commands, state synchronization, and transaction history. We also built a Next.js 15 web demo with Privy authentication demonstrating the user experience, and an indexer service with REST API for real-time state queries. The entire stack was integrated end-to-end: we successfully executed deposits on Mantle Sepolia, synchronized state locally, generated ZK proofs, and verified them against the deployed contract. This represents a complete vertical slice of privacy infrastructure - from cryptographic circuits to user interface - built entirely during the hackathon period.
Tech Stack
Fundraising Status
Veilocity is currently MVP and actively seeking strategic partnerships and grant funding to advance from hackathon prototype to production-ready infrastructure. Our immediate funding needs center on a comprehensive security audit of both the ZK circuits and smart contracts (estimated $50-80k for tier-1 auditors), as well as team expansion to accelerate development of advanced features including decentralized sequencing, proof aggregation, and cross-chain privacy bridges. We are specifically interested in partnering with the Mantle ecosystem through grants programs, as Veilocity represents the first and only native privacy solution for Mantle L2. Beyond grants, we are open to conversations with privacy-focused VCs and angel investors who understand the long-term value of privacy infrastructure in blockchain ecosystems. Our target is to raise a $200-500k pre-seed round to cover audit costs, 6-12 months of runway for a core team of 3-4 engineers, and initial infrastructure costs for mainnet deployment.