Confidential Financefor the Privacy Era
The first confidential financial platform on the XELIS BlockDAG. Deposit XEL, borrow xUSD, trade on VaultSwap, tokenize real-world assets, and govern privately — secured by native Twisted ElGamal encryption.
Every DeFi platform
operates on a
fully transparent ledger.
Your positions, your strategies, your holdings — visible to everyone. Bots front-run you. Competitors copy you. Regulators surveil you. Privacy in finance isn't a feature anymore. It's survival.
Built on XELIS native homomorphic encryption, your financial life stays encrypted — by default.
Six pillars of a truly private financial stack
Not privacy bolted on top. Privacy at the protocol level — every contract, every balance, every interaction is encrypted from day one. Built native on the XELIS BlockDAG.
Confidential Lending
Deposit XEL as collateral and borrow xUSD without revealing your position, your LTV, or your strategy to anyone. Encrypted vaults powered by Twisted ElGamal.
Private Stablecoin
xUSD is a USD-pegged stablecoin with encrypted transfers by default. Mint via PSM at $1 oracle price, redeem on demand, hold privately.
MEV-Resistant AMM
VaultSwap is a custom automated market maker with built-in peg stability module and front-running protection — your trades settle fairly on every block.
Real-World Assets
Tokenize and trade real-world assets with confidential balances. Multi-signature treasury vaults for DAOs, foundations, and institutions.
Peer-to-Peer Credit
Bilateral P2P loans with custom terms, syndicated credit pools, and a multi-pool multi-collateral lending marketplace — all confidential by design.
On-Chain Governance
VLT holders control every protocol parameter: fees, oracles, risk limits, upgrades. With 48h timelock and a Guardian multisig for emergency pause.
A layered stack,
encrypted end-to-end.
51 smart contracts, organized in 6 layers. Each layer secures the one above, and every byte of state is encrypted at the XELIS BlockDAG level — long before it ever reaches a contract.
Click any layer to inspect its contracts. Every layer is built on the encrypted primitives below — nothing is added as an afterthought.
A complete confidential ecosystem
on a single BlockDAG.
VaultChat
End-to-end encrypted messaging with Diffie-Hellman key exchange, off-chain relayers, and hourly on-chain Merkle anchoring. 1 transaction per hour, 0 gas per message.
PrivacyMixer
Tornado-style ZK anonymity set for xUSD and VLT. Denominations of 10, 100, 1000. Merkle tree depth 24.
ComplianceModule
ZK-based KYC/AML verification. Prove regulatory eligibility without revealing your identity. MiCA/MiFID compatible.
Flash Loans
Uncollateralized atomic borrows with reentrancy guard. Arbitrage, liquidations, refinancing — all in one block.
Sealed-Bid Auctions
Confidential commit-reveal liquidations. No front-running. No sniping. No bid stalking. Just fair price discovery.
XELIS
Vault
Confidential Finance for the Privacy Era
xUSD
xUSD is the confidential stablecoin of XELIS Vault. Every transfer is encrypted — recipients, amounts, and balances stay private by default. The peg is enforced by two complementary mechanisms: a Peg Stability Module for instant mint/redeem at $1 oracle price, and overcollateralized vaults that back every xUSD with XEL collateral at ≥150% collateral ratio.
VLT — fixed supply,
engineered to shrink.
10 million VLT minted at launch. No more will ever exist. Three independent burn mechanisms grind the supply down — projected to divide by 3 within a decade. Holders govern every parameter, earn oracle rewards, and capture protocol upside as the supply tightens.
FeeDistributor (v10.3)
Every protocol fee (swap, PSM, borrow, redemption) is split by FeeDistributor.slx: 50% burned permanently, 40% to treasury, 10% to founder (ongoing 10y vesting). No extra cost to users — only the split changes.
Reputation-Based Slashing
When a price provider submits an outlier, their reputation drops (5 tiers: 0× to 1.5×). Bad behavior reduces reward multiplier — and 50% of every slash is burned at the contract level. Bad behavior is deflationary.
Governance Burn
VLT holders can vote to burn treasury VLT to accelerate deflation. Quorum of 10% required (with 365-day lock boost up to 2× voting power) — a community-controlled supply sink.
StakedOracle
permissionless by design.
No permissioned node operators. No backdoor admin keys. Anyone with 1,000 VLT can become a price provider — and economic slashing keeps them honest. The median of all valid submissions becomes the on-chain truth, every 25 seconds.
Stake & Register
Anyone stakes 1,000 VLT and registers as a provider via XelisVaultMiner. Reputation starts at 0 and climbs to 10,000 with good behavior. 5 reward tiers: 0× (banned), 0.25× (critical), 0.50× (warning), 1.0× (good), 1.5× (excellent).
Submit Prices
Fetch prices from MEXC, CoinEx, CoinGecko, or your own source. Submit signed prices every cycle (5 blocks / 25 seconds). Bootstrap mode works with just 3 providers, auto-disables when 10+ are active.
Median Aggregation
Every cycle, the contract sorts all submissions, computes the median, and identifies valid prices within ±5% of that median. Circuit breakers trigger at 5% deviation, 20% callback threshold, or 100-block hard stale.
Rewards & Slashing
Valid providers earn VLT rewards scaled by reputation tier (up to 1.5× multiplier). Outliers lose reputation points and may drop tiers — slashing from stake is burned (50%) and sent to treasury (50%).
Attack the oracle and
you fund its deflation.
A would-be attacker trying to spawn 1,000 bots to manipulate the median would need to stake 100,000 VLT — 1% of total supply. Even then, the reputation system drains those bots until they fall below the 1,000 threshold and get auto-deactivated (dropping to the 0× tier, which earns no rewards). Every attack burns VLT for the rest of the holders.
Stake VLT,
secure the oracle.
The XELIS Vault oracle is secured by staked VLT. Miners stake 1,000 VLT to register and submit prices every 25 seconds. Any VLT holder can delegate to a miner — increasing their oracle weight and earning a share of rewards. Rewards follow a Bitcoin-style halving: ~0.436 VLT per block initially, halving every year — emission lasts indefinitely, not capped at 10 years. New miners start at reputation 3,000 (Warning tier) and must prove themselves over 15 days to reach Good.
How miners work
4-step lifecycle — register, submit, earn, slash. All on-chain, all transparent.
Register
Stake 1,000 VLT via XelisVaultMiner.register_miner(). Set endpoint URL, miner pubkey, and services mask. Reputation starts at 3,000 (Warning tier) — you must prove yourself over time, not start at max.
Submit prices
Fetch prices from MEXC, CoinEx, CoinGecko, or your own source. Submit signed prices every 25 seconds (5 blocks). Bootstrap mode works with just 3 miners.
Earn rewards
Bitcoin-style halving: ~0.436 VLT per block, halving every year (6,307,200 blocks). Your share = block_reward × stake × rep_multiplier / total_stake. New miners get a 30-day bonus (up to +50%).
Get slashed if bad
Outlier prices lose reputation and slash stake (1%–50%). 50% of slash is burned, 10% to whistleblower, 40% to treasury. Bad behavior is deflationary.
5 tiers · 0× to 1.5× reward multiplier
Reputation is a number between 0 and 10,000 stored per-miner. It determines whether the miner is active (≥ 1,000) and how much they earn. Good behavior increases it, bad behavior decreases it.
New miners don't start at the top —
they earn their way up.
To prevent Sybil attacks (spawning many new miners to capture rewards), new miners start at reputation 3,000 (Warning tier, 0.5× multiplier) — not at the maximum. They must prove themselves over time through two mechanisms:
+2000 reputation after 15 days
After 15 days of active participation (259,200 blocks), a miner earns a +2000 reputation bonus viaget_time_proven_bonus(). This moves them from 3,000 (Warning) to 5,000 (Good) — doubling their reward multiplier from 0.5× to 1.0×.
Up to +50% extra rewards
For the first 30 days, new miners get a bonus on top of their base reward (via get_new_miner_bonus()). The bonus scales inversely with network size — fewer miners means higher bonus, incentivizing early participation.
Anti-Sybil by design: An attacker spawning 100 new miners would only get them at 0.5× multiplier (Warning tier) for 15 days, and the new-miner bonus disappears once 100+ miners are active. The cost of attacking (100 × 1,000 VLT stake = 100,000 VLT) far exceeds the rewards captured during the bootstrap period.
Don't want to run a miner?
Delegate your VLT instead.
MinerDelegation.slx lets any VLT holder delegate to a registered miner. Your stake increases the miner's oracle weight and earns a share of their rewards. The miner sets a commission (0–20%). Index-based accounting means no loops — gas stays constant even with 500 delegators per miner.
Choose a miner
Browse registered miners on the dashboard. Each miner has a public profile: name, description, commission rate (0–20%), total stake, reputation tier, and historical performance.
Delegate VLT
Call MinerDelegation.delegate(miner_addr, amount, auto_compound). Your VLT is locked in the contract and added to the miner's total stake. The miner's oracle weight increases proportionally.
Earn rewards
When the miner submits valid prices, StakedOracle calls distribute_rewards(). Your share is calculated via index-based accounting (no loops, gas-efficient). Auto-compound optionally reinvests your rewards.
Undelegate anytime
Call undelegate(amount) to queue a withdrawal. After the undelegate delay, call execute_undelegate() to receive your VLT + accumulated rewards. No lock-up beyond the delay period.
Don't penalize rewards —
penalize oracle manipulation power.
In v11.3, the concentration penalty moved from rewards to oracle weight. A miner holding too much stake (own + delegated) still earns full rewards, but their influence on the median price is reduced. This prevents a single large miner from manipulating the oracle without punishing them economically.
| Miner % of total stake | Oracle weight | Rewards |
|---|---|---|
| 0–8% | 1.0× | Full |
| 10% | 0.88× | Full |
| 14% | 0.65× | Full |
| 18% | 0.42× | Full |
| 20%+ | 0.30× | Full |
Key insight: A miner with 20%+ of total stake still earns full rewards, but their vote on the median price is capped at 0.3× weight. This means they cannot manipulate the oracle even with significant stake — and they have no reason to complain since their rewards are unaffected.
Bad behavior is expensive.
5 severity levels. Slashing is applied to the miner's stake — 50% is burned permanently, 10% goes to the whistleblower, 40% to the treasury. Reputation drops simultaneously, reducing future reward multiplier.
| Severity | Slash | Rep Loss | Trigger |
|---|---|---|---|
| Outlier | 1% | −50 | Price deviates >5% from median |
| Offline | 2% | −200 | Missed heartbeats |
| Data loss | 5% | −500 | Submitted invalid data |
| Censorship | 10% | −1,000 | Refused to include transactions |
| Malicious | 50% | −5,000 | Proven price manipulation |
Ready to secure the oracle?
Run a miner with the CLI, or delegate your VLT to an existing miner. Both earn rewards via Bitcoin-style halving emission — ~0.436 VLT per block initially, halving every year.
51 contracts.
962 entry functions.
v11.3 · audit-remediated core.
Every contract is open-source (MIT-licensed). The 37 core contracts are v11.3 audit-remediated (9 critical bugs fixed in v10.5 + 34 cross-contract call bugs fixed in v11.1) and will deploy on testnet August 30. The 13 Phase 5+ contracts are written, security-reviewed internally, and gated behind a governance vote — they will not deploy until the core protocol is stable.
All contracts are MIT-licensed. PRs welcome.
View full repository on GitHub ↗VaultChat
Private by design.
End-to-end encrypted messaging built into XELIS Vault. Nobody can read your messages: not relayers, not miners, not the protocol team. Powered by X25519 Diffie-Hellman key exchange and ChaCha20-Poly1305 encryption, anchored on-chain via Merkle roots.
One seed, one keypair
VaultChat does not create a second wallet. It derives a chat keypair from your existing XELIS wallet private key using HKDF-SHA256. Lose your computer? Restore your wallet seed, and the exact same chat keys are regenerated. No separate backup needed.
Relayers pay gas, so they earn fees
Every time a relayer stores a message on-chain or anchors a Merkle root, it pays network fees in XEL. Without compensation, no one would run a relayer. That is why relayers set their own pricing models and earn revenue from users.
Each relayer can offer a limited number of free daily slots. Caps their own gas costs while letting new users try the service.
Relayers set their own price per message. Users pick whichever relayer offers the best rate.
Duration plans or message packs. Buy for yourself or gift to another wallet.
Relayers build an on-chain reputation based on their behavior. Users can verify that messages were actually stored on-chain. A relayer that claims to be free but skips on-chain storage to save gas gets rated poorly.
- Good relayers earn trust and attract more users
- Dishonest relayers get blacklisted by peers and die off naturally
- Relayers sync messages with each other for redundancy
- Protocol takes 5% of all relayer fees for treasury
Payment Requests
Send invoices through chat. Recipient sees the request, clicks Pay, done. On-chain proof for both parties.
Group Giveaways
Create a giveaway in group chat. First N people to claim get tokens. Anti-abuse: one claim per wallet.
Direct Messages
Bypass relayers entirely. User pays gas for maximum persistence. Separate 50-slot ring buffer for important messages.
On-chain
- Fixed ring buffer: 50 relayed + 50 direct messages per user
- Old messages automatically overwritten, zero blockchain bloat
- Merkle root anchored every ~80 min (configurable)
Off-chain (Relayer)
- Tiered: Hot (SSD, 7d), Warm (HDD, 90d), Cold (Archive)
- Deduplication: same message from 3 relayers stored once
- Anti-cheat: users verify storage, bad relayers get blacklisted
From testnet
to confidential mainnet.
Core Protocol v11.3
- 51 contracts total · 962 entry functions · MIT license
- 37 core contracts deployed at testnet launch
- 13 Phase 5+ contracts written, gated behind governance vote
- VaultEngineV3 confidential mode · StakedOracle v10 · VaultSwapV2
- Progressive slashing · trimmed median · anti-Sybil stake
v5.0 Audit Remediation
- 15 vulnerabilities fixed (5 critical, 4 high, 4 medium, 2 low)
- 2-step emergency withdraw on all fund-holding contracts
- Two-layer guardian (EOA + 3-of-5 multisig)
- Reentrancy guard pattern (RG_STATUS_KEY)
- 4 additional critical fixes in v5.1 pre-launch review
Testnet Deployment
- Contracts redeployed with v5.1 patches (4 critical fixes)
- XSWD integration rewrite (cross-contract permissions)
- CLI tool + miner script released on GitHub
- Wallet connection — Genesix + local RPC
External Security Audit
- Trail of Bits / OpenZeppelin / Hacken
- Immunefi bug bounty program
- Community review period
- Final parameter calibration
Mainnet Launch
- Mainnet contract deployment
- Public mining & provider onboarding
- Liquidity bootstrap on VaultSwap
- Governance handover to VLT holders
Privacy in finance
shouldn't be optional.
Join the first confidential financial platform on XELIS BlockDAG. Become a price provider, build on the SDK, or just hold xUSD privately. The encrypted future is open-source — and waiting for you.