> For the complete documentation index, see [llms.txt](https://anubis-network.gitbook.io/anubis-network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://anubis-network.gitbook.io/anubis-network/application-scenarios.md). # Application Scenarios Anubis' core value proposition lies in "Selective Privacy," which enables it to support complex financial applications that require both privacy protection and the ability to be publicly verified or audited. Below are three typical application scenarios. #### 10.1 Privacy-Preserving Decentralized Exchanges On Uniswap on Ethereum, anyone can see your order amounts, slippage settings, and transaction paths, leading to serious MEV (Mean Exchange Expectations) issues. On Anubis, DEXs can run under **Level 2 Privacy Mode.** **Workflow** * Intent to submit\ The user generates a local ZK proof that they own, for example, 10,000 USDC of Note and have the right to spend it. * Transaction structure\ A user constructs a transaction and publicly declares, "I want to exchange 10,000 USDC for ETH." * Public information\ Trading pair (USDC-ETH), Input amount (10,000 USDC), Output token type. * Hidden information\ The user's wallet address and the origin history of the USDC Note. * On-chain execution * The DEX contract verifies the ZK proof to confirm the validity of the funds. * DEX uses the standard constant product formula ![](/files/hcEZlMT48NnaYOUHebfc) to calculate the exchange rate. Because the input amount is public, the contract can transparently update its reserve pool balance ![](data:image/png;base64,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) and ![](data:image/png;base64,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). * The DEX mints a new ETH Note for the user, and ownership of the Note is encrypted in the transaction receipt, which only the user can decrypt. * Anti-MEV\ Combined with the TEM mechanism, external observers cannot even see the value of "10,000 USDC" until the transaction is confirmed, completely eliminating the possibility of front-run attacks. **Advantages**\ The total value locked (TVL) and trading volume data of DEXs are publicly available (which is beneficial for data analysis and ecosystem development), but the identities of traders are kept confidential. #### 10.2 Institutional Lending Based on ZK-KYC Institutional investors (such as hedge funds) are often constrained by compliance requirements and are reluctant to disclose their positions to competitors. **Scene description**\ An organization wants to borrow USDT by pledging BTC. * Compliance access\ Institutions complete KYC off-chain through compliant service providers (such as Coinbase or banks) and obtain a digitally signed certificate. * Zero-knowledge proof generation\ The institution generates a ZK certificate locally, stating: "I possess a valid KYC certificate that has not expired, and the issuer is institution A on the trusted list." Note that the certificate does not include the specific name or identification number of the organization. * Privacy lending\ Institutions deposit assets into Anubis's private lending pool. Borrowing is permitted after the agreement verifies ZK-KYC credentials. * Liquidation mechanism\ Institutions are required to periodically submit ZK proofs to demonstrate their "collateralization ratio > 120%". If proof is not submitted or verification fails, the agreement will enforce a public liquidation process. **Advantages**\ It achieves "Compliance with Privacy". Regulatory bodies recognize its legitimacy, while competitors cannot monitor the institution's specific leverage ratios and holdings.26 #### 10.3 Corporate Payroll Payment and Selective Audit When companies use cryptocurrency to pay salaries, they often face the embarrassing situation of privacy breaches—once employees know the pay address, they can find out the salaries of all their colleagues. **Anubis solutions** * **Paying salaries**\ The company sends payroll Notes to employees in bulk via privacy transactions. On-chain, only "the company account sent funds to 100 hidden addresses" is displayed; the specific amount received by each address is hidden (encrypted in the Note commitment). * **Employee experience**\ Employees receive a paycheck, which they can spend or redeem at any time, and their spending habits cannot be tracked by outsiders. * **Regulatory audit**\ When the tax authorities conduct an audit, the company only needs to provide the transaction details, View Key. The tax authorities can use the View Key to decrypt all transaction details for that batch of transactions and verify whether taxes have been paid in full. This disclosure is one-way and one-time, and does not reveal the company's private keys or other trade secrets. #### 10.4 Compliant Finance As traditional financial institutions (TradFi) increasingly venture into decentralized finance (DeFi), a key challenge has emerged: how to protect their trading strategies and holdings from competitors while meeting stringent regulatory requirements (such as Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT)). Anubis offers a complete "Programmable Privacy" solution designed specifically for institutional-grade compliant finance. **Anubis solutions** * Institutions can achieve "confidentiality to the public and transparency to regulators" by configuring specific privacy parameters when conducting transactions on Anubis. * View key targeted disclosure\ Institutions proactively submit reports with Incoming View Key ($ivk$) and Outgoing View Key ($ovk$) to regulatory bodies in their jurisdictions (such as the Auditor General or the Monetary Authority of Singapore). The regulator holding the key can decrypt all historical transaction details of the institution on the blockchain (including counterparties, amounts, and asset types), and its audit depth is no different from that of traditional bank statements. * External privacy barriers\ For other observers on the chain (including competitors, short-selling institutions, and MEV bots), the institution's transactions are only represented by encrypted hashes and zero-knowledge proofs. External parties cannot analyze its specific trading strategies or its fund size through on-chain data. * Anubis includes multi-layered compliance tools to adapt to the needs of different jurisdictions: * Regular compliance reports\ Based on view keys, institutions can use automated tools to generate cryptographically signed compliance reports that prove the legitimacy of fund flows without disclosing data to the public. * Optional AML/KYC pool\ Anubis supports liquidity providers (LPs) in deploying privacy pools with “access permissions”. * Mechanism\ The smart contract determines whether to allow interaction by verifying the user's ZK-KYC credentials (proving that the user has passed off-chain compliance certification and is not on the sanctions list). * Significance\ This ensures that institutional funds interact only with compliantly screened pools of funds, fundamentally eliminating compliance risks associated with sanctioned addresses such as hacked wallets. **Anubis's value proposition** * Meet regulatory requirements\ It provides blockchain-level auditability, eliminates regulators' concerns about DeFi being a "black box," and complies with the technical requirements of the FATF Travel Rule. * Trade secret protection\ Strictly protect the institution's alpha strategy and core holdings to prevent malicious attacks caused by excessive transparency of on-chain data. * Achieving both compliance and privacy\ It breaks the traditional binary paradox of "Compliance Equals Transparency," paving the way for trillions of dollars of institutional funds to safely and compliantly enter the Web3 ecosystem.