zkSNARK Verification Process

ZkStable uses zkSNARKs to prove collateral backing and transaction validity without revealing private information. These proofs guarantee that $pUSD is always over-collateralized while keeping financial activity private.

🎯 What This Achieves

• Proves collateral exists without exposing balances

• Prevents counterfeit minting

• Allows public verification of system integrity without revealing users

🔬 Verification Steps

1. User deposits ZEC into a shielded pool

2. A zkSNARK proof is generated locally or via our proof tool

3. The proof is passed through the Cross-Chain Proof Relay

4. The ZK Verifier Contract on Ethereum/BNB validates the proof

5. If valid → $pUSD is minted

🧩 Components Involved

Component	Role
Zcash Shielded Pool	Stores collateral privately
zkSNARK Prover	Generates cryptographic proof of valid collateral
On-Chain Verifier	Confirms proof correctness
Collateral Registry	Ensures system-wide collateral ratio is maintained

✅ Security Guarantees

• Proofs ensure no minting without collateral

• Proofs are zero-knowledge, revealing no user data

• Verification is deterministic, meaning no trusted third party