Glossary

Atomic Swap: A swap operation that either completes fully or reverts/refunds automatically. If any validation fails during a confidential swap, the user receives their original cTokens back (minus fees).

Chainalysis KYT: Know Your Transaction service by Chainalysis. Zaïffer integrates with this off-chain monitoring system to track protocol interactions for compliance while keeping amounts encrypted.

cToken: Short for "confidential token". An encrypted version of a regular token (e.g., cUSDC for USDC) where balances are stored as euint64 encrypted values.

DeploymentCoordinator: The main contract for deploying new wrapper/cToken pairs. Orchestrates creation of both contracts and maintains a registry of deployed pairs.

Dust: Tiny remainder from rate conversion when shielding tokens. Occurs when converting between different decimal precisions. Sent to protocol fee recipient (typically < $0.01).

ERC-7984: OpenZeppelin standard for confidential fungible tokens. Specifies how encrypted balances work, how transfers are handled, and how smart contracts interact with confidential tokens. See: https://docs.openzeppelin.com/confidential-contracts/token

euint64: Encrypted 64-bit unsigned integer. The data type used to store confidential token balances. Can hold values from 0 to ~18.4 quintillion. Can only be decrypted by authorised parties.

Fee-on-Transfer Token: Tokens that automatically deduct a percentage on every transfer (e.g., reflection tokens, rebase tokens). The wrapper handles these by tracking actual received amounts rather than requested amounts.

FHE (Fully Homomorphic Encryption): A form of encryption that allows mathematical operations (addition, subtraction, multiplication) to be performed on encrypted data without decrypting it first. Based on lattice cryptography.

FeeManager: Contract managing all fee parameters (shield, unshield, deployment) and the fee recipient address. Configurable by protocol admin.

Handle: A reference to an encrypted value. Like a pointer, it doesn't contain the actual value but allows authorised parties to decrypt it.

Indexer: Off-chain service that monitors blockchain events for UnwrappedStarted events and exposes encrypted handles, making it easier to find publicly-decryptable values. Not strictly required---you can read events directly from the blockchain.

OFAC: Office of Foreign Assets Control. U.S. government agency that maintains sanctions lists. Zaïffer automatically blocks addresses on the OFAC sanctions list from protocol interactions.

Rate: Conversion ratio between original token and cToken, used to handle different decimal precisions. Formula: rate = 10^(decimals - 6) for tokens with >6 decimals, otherwise 1.

Request ID: Unique identifier for an unwrap operation. Generated in Phase 1 (UnwrappedStarted) and used in Phase 2 (finalizeUnwrap) to link the two phases.

Router: Uniswap V2 router contract that executes token swaps. The SwapV0 contract maintains a whitelist of approved routers for security.

Shield: User-facing term for "wrap". The process of converting regular tokens (USDC, ETH) into confidential tokens (cUSDC, cETH).

Swap Path: Array of token addresses defining a swap route on Uniswap V2. Example: [USDC, WETH, DAI] swaps USDC → WETH → DAI. The SwapV0 contract validates paths before execution.

Token Parity: The guarantee that every cToken is backed 1:1 by the wrapper's holdings of the original token. Total cToken supply always equals the wrapper's balance of underlying tokens.

Unshield: User-facing term for "unwrap". The process of converting confidential tokens back into regular tokens. A two-phase asynchronous operation where you decrypt a publicly-decryptable value and submit it for finalisation.

Underlying Token: The original, non-confidential token that a cToken represents. For cUSDC, the underlying token is USDC.

Wrapper: Smart contract that handles shielding/unshielding operations. Holds original tokens in escrow and has exclusive permission to mint/burn the paired cToken.

Zama: Company providing the FHE technology and decentralised computation network used by Zaïffer. Processes encrypted operations requested by smart contracts without accessing plaintext values.