A Proposal for Shielded Assets (ZSA/UDA) for DeFi on Zcash

@Shawn you bring up a super valid point.
I will start by saying two things:

  1. The point here is not to prioritize one solution over another one as per the team’s preferences. It is to enable a community-backed solution.
  2. QEDIT does not have (yet) a solution fully outlined, which gives us the flexibility to be on the neutral side and take in as much feedback as possible. We have been in this situation before (in ZKProof and in DARPA), as the middle objective technical team in charge of bringing consensus for a solution and we never allow any technical, security or usability compromise.

Of course we hope that things will go smooth, but there are key aspects to this proposal where people in the community have strong opinions about, and we are aware of these. For this it is also important that all discussions happen openly such that there is enough transparency to create the right pressure.

Specifically, when it comes to technical aspects, we will absolutely work with the core ECC team as they have built the Orchard (and every other) protocol (basically) from the ground up (sprout was a result of the Zerocash paper). At QEDIT we have also built such systems, so we know what it entails from a security stand point. Our approach is to first collect all functionality requirements and then ensure that the design encompasses all of these.

In terms of fee structures, we do not have a strong opinion, and we will make sure to align the different parties around an initial MVP solution. If it comes to it, we will go for a community-based vote (why the ZCAP exists), making sure there is enough education on the solutions for individuals to make informed decisions.

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