Polygon, the Layer-2 scaling solution on Ethereum, has announced a partnership with the Panther Protocol. The partnership will focus on privacy in the decentralized finance world, with the two entities working with projects building on Polygon to develop privacy features that empower their end-users.
Panther Protocol is an end-to-end privacy protocol connecting blockchains. It focuses on restoring privacy to Web3 and DeFi platforms while providing institutions with a clear path to compliantly participate in digital asset markets.
Panther is building its MVP on Polygon. However, it will launch its ZKP token on Ethereum and use Polygon’s interoperable capabilities to bridge tokens over. In its press release, the project revealed that it chose Polygon because it has demonstrated its incredible technical capabilities and its low fees.
Oliver Gale, the Panther Protocol CEO remarked:
Polygon’s approach brings scalable, low-cost transactions to the Ethereum network as well as a burgeoning ecosystem of DeFi protocols already using their technology. Panther’s partnership will enable zAsset utility between all Panther users in a privacy-preserving, scalable and regulatory compatible fashion – opening the doors for true institutional adoption and retail usage.
The MVP on Polygon will avail such features as shielding and deshielding of assets, private transfer of assets, ability to interact with the protocol via web wallet, Panther vaults and voluntary full disclosure of selected transactions and their linkage.
By partnering with Polygon, Panther will now be able to avail interoperable privacy and compliance-friendly selective disclosure mechanisms to the Polygon network. Polygon will in turn provide technical support to the project and help it to collaborate with other startups building on its ecosystem.
Panther targets privacy in DeFi
Both Polygon and Panther acknowledge the value of privacy as a basic human right. The latter uses zkSNARK technology to let its users to mint collateralized, privacy-enhancing zero-knowledge assets, better known as zAssets. To do this, the users have to deposit their digital assets from any blockchain into Panther vaults. Once they get the zAssets, they can use them across the DeFi ecosystem.
The MVP on Polygon will give users the opportunity to familiarize themselves with zAssets, “which provide privacy by default whilst retaining DeFi composability.”
“Minting zAssets can effectively be seen as a shielding mechanism, and burning as unshielding. It will be implemented via a small number of shielded privacy pools on Polygon, keeping balances of zAssets permanently backed 1:1 by native collateral in Panther vaults,” the project stated in its press release.