# 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.


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