TORNADO-CASH 2.0: Native EVM Privacy-Preserving Lending Platform

Privacy within the Ethereum Virtual Machine (EVM) is critical for fostering a secure, decentralized, and equitable blockchain ecosystem. As decentralized applications (dApps) and decentralized finance (DeFi) protocols grow, protecting user privacy becomes increasingly important. Privacy is a fundamental human right that safeguards individual autonomy and freedom.

Tornado Cash 2.0 is a next-generation Ethereum privacy solution designed to address these concerns. Building upon the original Tornado Cash protocol, it introduces significant enhancements to improve security, efficiency, and user experience. Key innovations include adopting the Poseidon hash function, utilizing the Noir language and PlonK proofs, integrating with Aave for liquidity provision, and enforcing a verifiable one-day liquidity lock.

Setting up:

1. Install Noir

curl -L noirup.dev | bash
noirup

2. Install Proving Backend:

curl -L bbup.dev | bash
bbup

Running Tests Locally:

1) Create Deposit proof from /deposit/Prover.toml

cd circuits/deposit
nargo execute
bb prove -b ./target/deposit.json -w ./target/deposit.gz -o ./target/proof
bb write_vk -b ./target/deposit.json -o ./target/vk
cd ..
cd ..
cd tornado-cli 
cargo run --package tornado-cli --bin deposit_proof_convert 
cd ..

2) Compute nullifier hash

forge test --match-test test_write_nullifier

@DEV WAIT 10 seconds here!!! This is the min deposit time proof logic (set for 10 seconds for the hackathon).

3) Get IMT root, proof siblings, and path indicies, then format /withdraw/Prover.toml

forge test --match-test test_deposit_proof_vault_generate_data

cd tornado-cli
cargo run --package tornado-cli --bin withdraw_prover_formatter
cd ..

4) Create withdraw proof, convert to hex, run test

cd circuits/withdraw
nargo execute
bb prove -b ./target/withdraw.json -w ./target/withdraw.gz -o ./target/proof
bb write_vk -b ./target/withdraw.json -o ./target/vk
cd ..
cd ..

cd tornado-cli
cargo run --package tornado-cli --bin withdraw_proof_convert
cd ..

forge test --match-test test_withdraw_proof 

RUNNING THE FRONTEND:

1. deploy contracts & run anvil

anvil --accounts 10 --timestamp $(date +%s) --block-time 5

2. in new terminal deploy the vault & verifier contracts:

forge script script/Deploy.s.sol --fork-url http://127.0.0.1:8545 --private-key 2a871d0798f97d79848a013d4936a73bf4cc922c825d33c1cf7073dff6d409c6 --broadcast

Full DEMO Commands:

1) Create Deposit proof from /deposit/Prover.toml

cd circuits/deposit
nargo execute
bb prove -b ./target/deposit.json -w ./target/deposit.gz -o ./target/proof
bb write_vk -b ./target/deposit.json -o ./target/vk
cd ..
cd ..
cd tornado-cli 
cargo run --package tornado-cli --bin deposit_proof_convert 
cd ..

forge test --match-test test_write_nullifier

sleep 11

forge test --match-test test_deposit_proof_vault_generate_data

cd tornado-cli
cargo run --package tornado-cli --bin withdraw_prover_formatter
cd ..

2) Create Withdraw Proof

cd circuits/withdraw
nargo execute
bb prove -b ./target/withdraw.json -w ./target/withdraw.gz -o ./target/proof
bb write_vk -b ./target/withdraw.json -o ./target/vk
cd ..
cd ..

cd tornado-cli
cargo run --package tornado-cli --bin withdraw_proof_convert
cd ..

forge test --match-test test_withdraw_proof

forge test --match-test test_withdraw_proof