Quantum Pools

A Quantum-Resistant, Privacy-Preserving Automated Market Maker

Built for HackMoney 2026 • Deployed on Sepolia Testnet

Live Interface • Documentation • NPM Package

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System Abstract

Quantum Pools is a decentralized exchange protocol designed to mitigate the systemic risks posed by quantum computing while addressing the privacy limitations of public ledger automated market makers (AMMs). The protocol integrates three novel technologies:

1. Post-Quantum Cryptography (PQC): Utilizes the NIST-standardized CRYSTALS-Dilithium signature scheme for quantum-resistant authentication.
2. Fully Homomorphic Encryption (FHE): Enables the execution of AMM invariants on encrypted data, preventing miner extractable value (MEV) and preserving trader privacy.
3. Account Abstraction (ERC-4337): Abducts complex cryptographic operations into a seamless user experience via smart contract wallets and batched operations.

Ecosystem Integrations

We leverage best-in-class infrastructure to deliver a robust, production-ready experience.

Partner	Integration	Purpose
Uniswap v4	Dynamic Fee Hooks	We implement a custom Hook (QuantumDynamicFeeHook.sol) that adjusts swap fees based on volatility and user registration status, protecting LPs from toxic flow while incentivizing privacy.
Yellow	Intent Solver SDK	The Yellow SDK optimizes UserOperation construction, batching sequential intents (e.g., Approve → Swap) into atomic transactions and providing pre-confirmation guarantees.
ENS	Quantum Identity	Every Quantum Account is issued a unique .quantumtest.eth subdomain via our custom Registrar, binding human-readable identities to post-quantum keys.

Technical Architecture

The architecture utilizes a hybrid off-chain/on-chain model where sensitive key operations occur in a secure client enclave (MetaMask Snap), while verification and execution occur on-chain via zero-knowledge proofs and encrypted state machines.

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graph TB
    subgraph Client ["Client Environment"]
        User["User"]
        Snap["MetaMask Snap Key Managment"]
        Frontend["React Application"]
    end

    subgraph AA ["Account Abstraction Layer"]
        SDK["Yellow SDK Optimizer"]
        Bundler["ERC-4337 Bundler"]
        EntryPoint["EntryPoint v0.7"]
    end

    subgraph Protocol ["On-Chain Protocol"]
        Account["Quantum Account Contract"]
        Verifier["Groth16 ZK Verifier"]
        Router["Liquidity Router"]
        
        subgraph Pools ["Liquidity Pools"]
            PublicPool["Standard AMM Pool"]
            DarkPool["FHE Dark Pool"]
        end
        
        Hook["Uniswap v4 Hook"]
        Registrar["ENS Registrar"]
    end

    User --> Snap
    Snap -- "Dilithium Sign" --> Frontend
    Frontend --> SDK
    SDK -- "UserOperation" --> Bundler
    Bundler --> EntryPoint
    EntryPoint --> Account
    Account -- "Verify ZK Proof" --> Verifier
    Account -- "Execute" --> Router
    Router --> PublicPool
    Router --> DarkPool
    Router --> Hook
    Account --> Registrar

    style User fill:#000,stroke:#80FF00,stroke-width:1px,color:#fff
    style Snap fill:#000,stroke:#80FF00,stroke-width:1px,color:#fff
    style Frontend fill:#000,stroke:#80FF00,stroke-width:1px,color:#fff
    style SDK fill:#000,stroke:#80FF00,stroke-width:1px,color:#fff
    style DarkPool fill:#0d0d0d,stroke:#80FF00,stroke-width:1px,color:#fff,stroke-dasharray: 5 5
    style Hook fill:#ff007a,stroke:#ff007a,stroke-width:1px,color:#fff
    style Registrar fill:#5298ff,stroke:#5298ff,stroke-width:1px,color:#fff

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1. Lattice-Based Cryptography (Dilithium)

The core security component is the implementation of CRYSTALS-Dilithium 2, a lattice-based signature scheme resistant to Shor's algorithm.

• Key Generation: Performed within the isolated execution environment of a MetaMask Snap (quantum-pools-snap) to ensure key material never leaves the user's secure context.
• Signature Compression: To minimize on-chain gas costs, we do not verify the raw 2.4KB Dilithium signature on Ethereum. Instead, we generate a Groth16 zk-SNARK proof attesting to the validity of the signature.
• Verification Efficiency: The QuantumAccount smart contract verifies this constant-size zk-SNARK proof, reducing verification cost from ~3,000,000 gas (estimated for raw verification) to ~200,000 gas for the first verification, and significantly less when batched.

2. Confidential State Machine (FHE)

The Dark Pool component utilizes Fully Homomorphic Encryption (FHE) to operate on encrypted states. The Constant Product Market Maker (CPMM) invariant x * y = k is computed over tfhe.uint types.

Implementation Strategy

We employ a unified interface that supports both testnet simulation and production FHE environments:

Testnet Configuration (Sepolia)

import "./mocks/MockTFHE.sol"; // Plaintext simulation for gas profiling

Production Configuration (Inco/Zama)

import "fhevm/lib/TFHE.sol"; // Homomorphic encryption execution

The system supports standard FHE operations (TFHE.add, TFHE.mul, TFHE.le) to ensure that liquidity provider balances and user swap amounts solely exist as ciphertexts on-chain.

3. Account Abstraction & Yellow SDK

We leverage ERC-4337 to provide a unified interface for interacting with both quantum and privacy features. The Yellow SDK is a client-side library that optimizes UserOperation construction. It identifies dependent sequential operations (e.g., Token.approve() followed by Router.swap()) and batches them into a single atomic transaction.

Batching Example

// Yellow SDK automatically bundles dependent operations
const batch = new YellowBatch();
batch.add(factory.interface.encodeFunctionData('createPool', [tokenA, tokenB]));
batch.add(router.interface.encodeFunctionData('addLiquidity', [tokenA, tokenB, amountA, amountB]));

// Executes as a single atomic UserOperation
await quantumAccount.executeBatch(batch);

Gas Analysis & Benchmarks

The following benchmarks demonstrate the efficiency gains from the Yellow SDK and the cost profile of FHE operations.

Yellow SDK Efficiency

Operation	Standard (EOA)	Yellow SDK (Batched)	Gas Savings
Create Pool + Add Liq	2 txs (~400k gas)	1 UserOp (~280k gas)	30%
Multi-Swap (3x)	3 txs (~360k gas)	1 UserOp (~250k gas)	31%
Approve + Swap	2 txs (~200k gas)	1 UserOp (~145k gas)	27%

Protocol Overhead

Operation	Public Pool	Dark Pool (Mock FHE)	Dark Pool (Real FHE)	Use Case
Add Liquidity	~150k gas	~200k gas	~3,000k gas	Initial seeding
Swap	~120k gas	~150k gas	~8,000k gas	Private exchange
Remove Liquidity	~130k gas	~180k gas	~2,500k gas	Position exit

Note: The gas premium for Real FHE is justified by the institutional-grade privacy it affords, effectively preventing value loss from front-running on large orders.

Contract Deployment (Sepolia)

Component	Address
QuantumSystem	0x7f57fee9f66F74C1D45e3FB4ba1FEFBb1ac9AF04
Factory	0x5E74A87c3Cf7E0B928db9396468885CB8bAa50c5
Router	0x26Fa1CF487280EE756d0BeBA5973aD19d8f6D802
Verifier	0xA98C966bE386760A05a1917626e4032BC93AbB28
Paymaster	0x71877B35abc4D002Ffe6eCc32E7c02FEbBc9FC96

Development Setup

Prerequisites

• Node.js v18+
• Yarn package manager
• Foundry (Forge)

Installation

# Clone the repository
git clone https://github.com/YASH-ai-bit/quantum-safe-pools
cd quantumpools

# Install Frontend Dependencies
cd frontend && npm install

# Install Snap Package (via NPM)
# No local build required if using the published package
npm install quantum-pools-snap

# Install Contract Dependencies
cd ../contracts && forge install

Local Execution

# Start the frontend application
cd frontend
npm run dev

# Note: The application will connect to the published Snap on NPM.
# To develop the Snap locally, refer to SNAP_DEVELOPMENT.md

Project Trajectory

Phase 1: Testnet (Current)

• Quantum account implementation (ERC-4337)
• Dual-track AMM (Public + Dark)
• Mock FHE integration for rapid iteration

Phase 2: Production FHE (Q2 2026)

• Integrate Zama fhEVM / Inco Network
• Encrypted Orderbook for OTC matching
• Mainnet Security Audit

License

This project is licensed under the MIT License.

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_{Copyright © 2026 Quantum Pools Team}