Strix 🦅

A privacy-preserving DeFi lending protocol built on Midnight Network that enables private lending and borrowing while maintaining user anonymity through zero-knowledge proofs.

Strix is a decentralized lending protocol with privacy-first design that bridges traditional DeFi transparency requirements with user privacy needs. Built on Midnight Network's zero-knowledge capabilities, Strix enables users to access lending services without compromising their financial privacy.

• Private Identity System (zkID): Privacy-preserving identity tokens with selective revelation
• Customizable Liquidity Pools: Private lending/borrowing with interest earning capabilities
• Privacy-Preserving Transactions: All operations maintain user anonymity through zk-proofs
• Debt Auction Mechanism: Failed repayments trigger debt auctions with controlled identity disclosure
• Modern Development Stack:
  • Midnight Network for zero-knowledge blockchain infrastructure
  • Bun as the JavaScript runtime and package manager
  • Hono as the backend framework
  • React for the frontend UI
  • Turbo for monorepo build orchestration and caching

.
├── contracts/            # Midnight Network smart contracts (Compact language)
│   ├── src/
│   │   ├── TestToken.compact      # ERC-20-like token contract
│   │   ├── LiquidityPool.compact  # Lending/borrowing pool contract
│   │   └── zkID.compact           # Privacy-preserving identity contract
│   └── managed/          # Compiled contract artifacts
├── cli/                  # Command-line interface for contract interaction
│   ├── src/
│   │   ├── testtoken-api.ts       # TestToken contract API
│   │   ├── liquidity-pool-api.ts  # LiquidityPool contract API
│   │   ├── initialize-tokens-and-pools.ts  # Deployment scripts
│   │   └── query-contract-state.ts # Contract state querying
│   └── standalone.yml    # Docker configuration for Midnight Network
├── client/               # React frontend (UI mockups)
├── server/               # Hono backend API
├── shared/               # Shared TypeScript definitions
└── turbo.json            # Turbo configuration for build orchestration

Strix implements three core smart contracts using Midnight Network's Compact language:

Basic ERC-20-like functionality with privacy features:

• Mint, burn, and faucet operations
• Private balance tracking
• Owner-based access control

Comprehensive lending/borrowing system:

• Liquidity provision and withdrawal
• Collateral staking and borrowing
• Health factor calculations and liquidation
• Interest rate management
• Reward distribution

Privacy-preserving identity management:

• KYC verification without revealing personal data
• Credit score tracking
• Selective identity revelation during liquidation
• Authorized issuer management

The command-line interface provides comprehensive contract management:

cli/
├── src/
│   ├── testtoken-api.ts       # TestToken contract interactions
│   ├── liquidity-pool-api.ts  # LiquidityPool contract interactions
│   ├── initialize-tokens-and-pools.ts  # Deployment automation
│   └── query-contract-state.ts # Contract state inspection
└── standalone.yml             # Docker configuration

The React frontend provides a modern web interface for interacting with Strix:

client/
├── src/
│   ├── components/
│   │   ├── supply-market.tsx    # Supply market interface
│   │   ├── borrow-market.tsx    # Borrow market interface
│   │   ├── core-asset-table.tsx # Asset listing
│   │   └── ui/                  # Reusable UI components
│   ├── routes/
│   │   ├── index.tsx           # Main dashboard
│   │   ├── portfolio/          # User portfolio
│   │   └── transactions/       # Transaction history
│   └── lib/
│       └── token-api.ts        # Frontend API integration

Note: The frontend currently contains UI mockups and is not yet connected to the CLI backend. Integration is planned for future development.

• Bun: Version 1.2.4+ (package manager and runtime)
• Docker & Docker Compose: For running Midnight Network standalone environment
• Midnight Compact Compiler: For smart contract compilation

1. Install Dependencies

bun install

2. Start Midnight Network Environment

cd cli
docker compose -f standalone.yml up -d

3. Compile Smart Contracts

cd contracts
bun run compact

4. Deploy Tokens and Liquidity Pools

cd cli
bun run src/initialize-tokens-and-pools.ts

5. Interact with Contracts

# Deploy new token
bun run src/simple-standalone-testtoken.ts

# Query contract states
bun run src/query-contract-state.ts

# List all tokens
bun run src/list-test-tokens.ts

# Run all services in development mode
bun run dev

# Build all packages
bun run build

# Lint code
bun run lint

# Type check
bun run type-check

Strix implements a privacy-preserving DeFi protocol with the following key components:

• Default Privacy: All transactions and balances are private by default
• Selective Revelation: Identity is only revealed during liquidation events
• Zero-Knowledge Proofs: Verify financial positions without revealing amounts
• Controlled Disclosure: Authorized entities can access specific information when needed

1. Token Deployment: Deploy TestToken contracts with private balances
2. Pool Creation: Create LiquidityPool contracts linked to tokens
3. Identity Issuance: Issue zkID tokens for KYC verification
4. Lending Operations: Provide liquidity and earn interest privately
5. Borrowing Operations: Stake collateral and borrow with private amounts
6. Liquidation Process: Reveal identity only to debt collectors during default

✅ Smart Contracts: TestToken, LiquidityPool, and zkID contracts
✅ CLI Interface: Comprehensive command-line tools for contract interaction
✅ Contract Deployment: Automated token and pool initialization
✅ State Querying: Contract state inspection and transaction history
✅ Privacy Protection: Zero-knowledge proof integration
🚧 Frontend Integration: Web interface (in development)
🚧 Multi-Asset Support: Cross-asset collateralization (planned)

• Running Guide - Detailed setup and usage instructions
• Token Pool Initialization - Contract deployment guide
• Query Tokens - Contract state querying documentation

• Midnight Network Documentation
• Compact Language Reference
• Zero-Knowledge Proofs Guide
• Bun Documentation
• Hono Documentation

MIT License - see LICENSE for details.