**Who:** -

**Stage:** -

**When:** -

## Objective
Develop a blockchain-based accounts payable application using the [redacted] *algortihm*, for small businesses, enabling publicly declared liabilities and debts to be discharged through obligation clearing and liquidity injections from on-chain (tokens) and off-chain sources (fiat). First develop a Web 2 based MVP, then a fully private network of obligation clearing and settlement *on-chain*.

## Background

Mutual credit acts as a protective barrier against the suction of financial capitalism as long as it is nonconvertible (non-securatizable). [redacted] promises to act as a bridge. The reason is that [redacted] is agnostic to the kind of money it operates on or on the scale it operates at. It is equally effectiv everywhere, but it still requires a significant level of cooperation and trust. [redacted] has the potential to strike the right balance and demonstrate a new way of thinking.

## Requirements

* **Privacy** - counterparty discovery & settlment
* **Multi-currency debt clearance** - clear or reduce debts via multiple liquidity sources
* **Intent Types** - Obligations, Tenders, and acceptences
### Protocol Requirements
* **Integrity** - Correctness of results (setoffs) must be publicly verifiable.
* **Censorship resistance** - the system must not be able to selectively censor obligations or participants.
* **Credible neutrality** - the system must not be able to favour any participant(s).
* **Confidentiality/Privacy** - Intents and setoffs must be hidden from the party running the clearing algorithm.
* **Fault tolerance** - available and resistant to DOS.
* **Atomic settlement and finality** - required for liquidity injection. Settlements must happen atomically.
* **Governance (optional)** - system provides a way for users/firms to define and vote on governance policies, including revoking intents before algortihtm runs.

### Cryptographic Requirements
* **TEE/FHE/MPC**- Encrypted intents + Solution for private solving
* **Prove in ZK** - the inclusion of an intent in a clearing cycle, validity of intents, feasibility/ validity of a list of settle-offs for a list of intents, and that settle-offs were encrypted using correct identities
* **Execution privacy** - the asset settle-offs atomically, notify users of their setoffs with full confidentiality

## User Story & Design

### User Story

**1.** Users upload (encrypted) obligations (on-chain or to solver)
**2.** Once every ‘epoch’ solver receives obligations, finds cycles, and creates setoffs
**3.** Setoffs find their way back to users
**4.** Users apply setoffs

## Development Path

* **Ship Web 2 MVP** - get in the hands of users and seek feedback
* **Design and specify protocols** - system requirement for Web 3 product inclusive of the listed requirements

## Future Work - Roadmap

* **Integration with DeFi and Lending protocols** - boost liquidity sources
* **Replicated security** - Global settlement layer on the [redacted], possibly draw on the Anoma *Network*

## Risks
* **Staffing limitations** - [redacted]; leave, hiring up
* **Complexities in cryptography**- Solving
* **Taiga** - Delayed timeline for Function Privacy
* **Intent Language** - long development cycle
* **Regulatory/jurisdictional issues** - Delays and legal interpretations
* **Complex MVP feedback cycle**- unable to get meaningful user stories/ feedback