GhostMarket

Confidential Dark Pool Prediction Market
Every deposit, every bet, every payout — a ciphertext from browser to blockchain.
The chain knows you bet. It does not know on what, in what size, or for how much.

👻 What It Is

GhostMarket is a binary prediction market where no financial value ever exists as plaintext on-chain. Not deposits. Not pool totals. Not bet sizes. Not payouts. Every value is an euint64 ciphertext processed by the Zama FHEVM coprocessor on Ethereum Sepolia.

The ERC-7984 cUSDC token holding all collateral literally cannot answer the question "how much does this user own?" The oracle signs over an encrypted handle, not a uint256. Two users can place bets in the same window and neither can infer the other's size from a price delta, because the price is frozen until the window closes.

Combined with a sealed-bid window mechanism, a 4-agent AI oracle quorum (3-of-4 majority; seven agent personas defined in code, configurable via ACTIVE_ORACLE_AGENTS) grounded in live exchange feeds, and Privy walletless login, this is what Polymarket would look like if the chain refused to publish your size.

Problems Solved

Problem	Solution	Mechanism
	FHE encryption of every value	`euint64` ciphertexts in calldata, storage, events, and settlements
	Cryptographic ACL — no master key	Zama KMS re-encryption; nobody can read another user's position
	Sealed-bid windows	Pool ACL withheld during window; all bets revealed atomically
	4-agent AI quorum (3-of-4)	Each active agent fetches a live CEX API, reasons via gpt-4o-mini, votes independently
	Settlement over encrypted handle	Oracle signs `keccak(user, marketId, amountHandle, nonce, expiry)`
	ERC-7984 cUSDC custody	All balances and locks are `euint64` in `GhostVaultV2`
	Privy embedded wallets	Google / email / passkey login — no mnemonic, no extension

🏗 Architecture

graph TB
    subgraph Browser["🌐 Browser"]
        direction LR
        FE["<b>Next.js 15</b><br/>React 19 · Tailwind v4 · viem"]
        SDK["<b>@zama-fhe/relayer-sdk</b><br/>encrypt(amount) → (handle, ZKPoK)"]
        PV["<b>Privy v3</b><br/>Embedded EOA · Google/Email/Passkey"]
    end

    subgraph Contracts["⛓️ Ethereum Sepolia (chainId 11155111)"]
        direction LR
        GM["<b>GhostMarket</b><br/>Metadata registry<br/>Lifecycle entry point"]
        EAMM["<b>GhostEAMM</b><br/>Encrypted AMM<br/>YES/NO euint64 pools<br/>Sealed-bid windows"]
        VLT["<b>GhostVaultV2</b><br/>ERC-7984 cUSDC custody<br/>EIP-712 settlement"]
        CUSDC["<b>cUSDC Mock</b><br/>ERC-7984 confidential token<br/>Zama canonical Sepolia"]
    end

    subgraph Oracle["🤖 Oracle Service (Node.js · port 8092)"]
        direction LR
        AGT["<b>4 Active AI Agents</b> (7 defined)<br/>Cipher · Specter · Wraith · Phantom<br/>+ Shade · Echo · Vex if ACTIVE_ORACLE_AGENTS=7"]
        WATCHER["<b>Sealed-Window Watcher</b><br/>Settle → Zama KMS decrypt<br/>→ publishWindowPrice"]
        SIGNER["<b>Oracle Signer</b><br/>EIP-712 Claim(amountHandle)"]
    end

    FE --> SDK
    FE --> PV
    SDK --> EAMM
    SDK --> VLT
    GM --> EAMM
    VLT --> CUSDC
    AGT --> GM
    AGT --> SIGNER
    WATCHER --> EAMM
    SIGNER --> VLT

    style Browser fill:transparent,stroke:#7c3aed,color:#333
    style Contracts fill:transparent,stroke:#3b82f6,color:#333
    style Oracle fill:transparent,stroke:#f59e0b,color:#333
    style FE fill:#7c3aed,stroke:#a78bfa,color:#fff
    style SDK fill:#412891,stroke:#7c3aed,color:#fff
    style PV fill:#8b5cf6,stroke:#a78bfa,color:#fff
    style GM fill:#64748b,stroke:#94a3b8,color:#fff
    style EAMM fill:#3b82f6,stroke:#60a5fa,color:#fff
    style VLT fill:#22c55e,stroke:#4ade80,color:#000
    style CUSDC fill:#06b6d4,stroke:#22d3ee,color:#000
    style AGT fill:#f59e0b,stroke:#fbbf24,color:#000
    style WATCHER fill:#ef4444,stroke:#f87171,color:#fff
    style SIGNER fill:#f59e0b,stroke:#fbbf24,color:#000

End-to-End Payout Flow

graph LR
    A["👤 User encrypts<br/>amount in browser"] --> B["🔒 cUSDC.setOperator<br/>+ GhostVaultV2.deposit"]
    B --> C["🏦 euint64 balance<br/>in vault"]
    C --> D["🎯 lockForBet +<br/>placeBet (FHE.add)"]
    D --> E["🪟 Sealed window<br/>pool frozen"]
    E --> F["⏰ Window expires<br/>→ PriceRevealed"]
    F --> G["🤖 Oracle quorum<br/>resolveMarket on-chain"]
    G --> H["✍️ Oracle signs<br/>Claim(amountHandle)"]
    H --> I["💸 confidentialTransfer<br/>(user, amountHandle)"]

    style A fill:#f8fafc,stroke:#334155,color:#000
    style B fill:#412891,stroke:#7c3aed,color:#fff
    style C fill:#22c55e,stroke:#4ade80,color:#000
    style D fill:#3b82f6,stroke:#60a5fa,color:#fff
    style E fill:#06b6d4,stroke:#22d3ee,color:#000
    style F fill:#06b6d4,stroke:#22d3ee,color:#000
    style G fill:#f59e0b,stroke:#fbbf24,color:#000
    style H fill:#f59e0b,stroke:#fbbf24,color:#000
    style I fill:#22c55e,stroke:#4ade80,color:#000

🔐 Privacy Model

On-chain — anyone can read	FHE-encrypted (`euint64` ciphertext handle only)
Market ID, title, category, expiry	Vault deposit amount
User EOA address	Vault balance per user
Bet side (YES / NO)	Per-market collateral lock
Market status, resolved outcome	Total locked per user
Sealed-window timestamps	YES pool total · NO pool total
Tx hashes, block numbers	Per-user YES position · NO position
	Pre-window pool snapshot
	Payout amount handle

Every on-chain event has zero amount fields — by design:

event BetPlaced    (uint256 indexed marketId, address indexed user, bool indexed side);
event Deposited    (address indexed user);
event BetLocked    (address indexed user, bytes32 indexed marketId, bool side);
event PayoutClaimed(address indexed user, bytes32 indexed marketId);

ACL — who can decrypt what:

Role	Can read	Mechanism
	Own balance, own lock, own position	`FHE.allow(handle, msg.sender)` on every write
	Its own ciphertexts (for re-use in arithmetic)	`FHE.allowThis(handle)`
	Pool totals — only after resolution or window settlement	`FHE.allow(pool, resolver)` in `resolveMarket` / `settleSealedWindow`
	Nothing, ever	No ACL entry is written for third parties

Privacy is trader-private, not authority-private. A regulator can be issued an ACL grant to specific handles via contract upgrade — the cryptography supports selective disclosure. This is the same shape as institutional dark pools in TradFi.

🔬 Encrypted Stack

1. ERC-7984 Confidential Vault

Layer	Sepolia Address	Role
Underlying (ERC-20, mintable)	`0x9b5C…dFfF`	Faucet token — mint, then wrap
ERC-7984 confidential wrapper	`0x7c5B…3639`	What users actually deposit

deposit — the key insight: the vault never holds a plaintext amount at any step.

user: setOperator(vault, forever)              ← encrypted-token "approve"
user: encrypt(amount) → (handle, ZKPoK)        ← plaintext gone in browser
GhostVaultV2.deposit(handle, proof):
  FHE.fromExternal(handle, proof)              ← verify ZKPoK
  FHE.allow(amount, address(cUSDC))            ← let cUSDC use this handle
  cUSDC.confidentialTransferFrom(user, vault)  ← homomorphic debit, no plaintext
  _balances[user] = FHE.add(_balances[user], transferred)

Overdraw can't be a revert — the EVM never sees a plaintext comparison. Instead:

ebool   ok              = FHE.ge(freeBalance, amount);
euint64 effectiveAmount = FHE.select(ok, amount, FHE.asEuint64(0));  // clamp in coprocessor

2. Encrypted AMM

GhostEAMM pool totals accumulate via FHE.add. No party has ACL access until market resolution or sealed-window settlement.

The minimum-bet guard runs entirely inside the coprocessor — the EVM never sees whether the submitted amount passed:

ebool   aboveMin        = FHE.gt(amount, FHE.asEuint64(MIN_BET_UNITS));
euint64 effectiveAmount = FHE.select(aboveMin, amount, FHE.asEuint64(0));

Per-user positions are ACL-scoped to the owner on every write:

_yesPositions[marketId][msg.sender] = FHE.add(..., effectiveAmount);
FHE.allowThis(_yesPositions[marketId][msg.sender]);
FHE.allow    (_yesPositions[marketId][msg.sender], msg.sender);  // user decrypts own position

After resolution the oracle gets one-shot ACL on only the winning side of one specific user via grantPositionAccess.

3. Sealed-Bid Windows

Even with encrypted bets, a continuously visible price is a side-channel: a tiny probe bet + the resulting price delta reveals the previous bet's size. Sealed windows close this.

stateDiagram-v2
    [*] --> Open: openSealedWindow — snapshot pool handles
    Open --> Accepting: placeBet (price display frozen at snapshot)
    Accepting --> Pending: window timer expires — placeBet blocked
    Pending --> Settled: oracle calls settleSealedWindow
    Settled --> Revealed: publishWindowPrice → PriceRevealed event
    Revealed --> [*]: frontend animates price jump

Commit-reveal without a second user transaction. The clock is the reveal; the bets were real the whole time; nobody owes a second tx. The combined delta publishes as one PriceRevealed event — no participant can chart anyone else's order flow inside the window.

4. Confidential Settlement

After oracle quorum the oracle signs over the encrypted ciphertext handle, not a plaintext amount:

// GhostVaultV2 — CLAIM_TYPEHASH
"Claim(address user, bytes32 marketId, bytes32 amountHandle, uint256 nonce, uint256 expiry)"
//                                      ^^^^^^^^^^^^^^^^^^^
//                                      euint64 handle — not a uint256 amount

The vault verifies the signature and calls cUSDC.confidentialTransfer(user, amountHandle). The handle flows through homomorphically.

The plaintext payout exists only in the user's browser when they decrypt their own balance handle. It never appears in: oracle memory, vault storage, token storage, calldata, events, or any block explorer.

Replay protection: usedNonces[user][marketId][nonce]. Settlement TTL: 24 hours. Signer rotation: setSettlementSigner(newOracle).

🤖 Oracle Agent Quorum

Source	Personality	Default active?
Binance	Data-driven; only trusts top-tier CEX feeds	Yes (1)
CoinGecko	Cautious; high threshold before voting YES	Yes (2)
Chainlink / CryptoCompare	On-chain feeds preferred over off-chain	Yes (3)
Coinbase	Contrarian; stress-tests the consensus	Yes (4)
Kraken	Cross-reference consensus-seeker	Optional (5)
OKX	Volume-weighted aggregator	Optional (6)
Bybit	Adversarial; hunts manipulation and stale data	Optional (7)

Each active agent: fetching (live API call, 6s timeout) → attesting (personality-specific gpt-4o-mini prompt with the real fetched value, JSON-only {vote, reasoning}) → submitted. With the default four agents, quorum is 3-of-4 (floor(N/2)+1). Set ACTIVE_ORACLE_AGENTS up to 7 to use every definition (then quorum is 4-of-7). On quorum: resolveMarket on Sepolia, settlement endpoint opens.

The Oracle Room (/oracle, ~1250 LOC) streams every agent's state, fetched price, live LLM reasoning, and on-chain tx hash via WebSocket. Every reasoning line is a real LLM response grounded in a real API call — nothing is pre-canned.

🧭 User Journey

Phase	Action	What happens on-chain
	Browse `/`, click a market	Reads public metadata + post-window `PriceRevealed` events
	Click YES/NO → Google sign-in	Privy creates embedded EOA — no mnemonic
	`/vault` → mint → wrap → setOperator → deposit	`confidentialTransferFrom`; vault balance becomes `euint64`
	Enter amount, click Place Bet (one click)	`lockForBet` + `placeBet` — `BetPlaced` event has no amount
	Watch `SealedCountdown` → timer hits zero	Oracle settles window, KMS decrypts pools, `PriceRevealed` emitted
	`/oracle` → Resolve → watch agents stream live	`resolveMarket` tx appears on Sepolia in real time
	`/portfolio` → Claim	Oracle signs `Claim(amountHandle)`; vault calls `confidentialTransfer(user, handle)`

📦 Deployed Contracts

Contract	Address	Role
	`0x9b5C…dFfF`	Underlying ERC-20, public mint
	`0x7c5B…3639`	ERC-7984 confidential wrapper
	`0xab75…0F5E`	Encrypted AMM + sealed-bid windows
	`0xddd9…B48f`	cUSDC custody + EIP-712 settlement
	`0xbD4f…Bfd0`	Metadata registry + lifecycle entry

The cUSDC addresses are Zama's canonical Sepolia tokens — anyone with Sepolia USDC can interact with the same vault.

Live shielded bet tx (encrypted calldata, no amount in events): 0x5994…9350

🗂 Repository Layout

GhostMarket/
├── 📜 contracts/
│   ├── contracts/
│   │   ├── GhostEAMM.sol           — FHE encrypted AMM + sealed-bid windows
│   │   ├── GhostVaultV2.sol        — ERC-7984 cUSDC custody + EIP-712 settlement
│   │   └── GhostMarket.sol         — Metadata registry + lifecycle forwarder
│   ├── scripts/
│   │   ├── deploy-sepolia.ts       — Full stack deploy (use this)
│   │   ├── redeploy-eamm.ts        — EAMM-only upgrade + auto-rewire
│   │   ├── demo-sealed-window.ts   — Seed a 5-min sealed-window market
│   │   └── seed-markets.ts / seed-3-markets.ts
│   └── test/
│       └── GhostEAMM.test.ts       — FHE bets, sealed windows, ACL grants, min-bet guard
│
├── 🤖 oracle/src/
│   ├── index.ts                    — Express + WebSocket server (port 8092)
│   ├── agents.ts                   — 7 agent definitions; first 4 active by default (`ACTIVE_ORACLE_AGENTS`)
│   ├── fetcher.ts                  — Live CEX / DeFiLlama / FRED fetchers (no API keys needed)
│   ├── sealed-window-watcher.ts    — Settle expired windows → Zama KMS decrypt → publishWindowPrice
│   ├── oracle-signer.ts            — EIP-712 sign Claim(user, marketId, amountHandle)
│   └── eamm-resolver.ts            — On-chain resolveMarket + grantPositionAccess
│
└── 🌐 web/src/
    ├── app/                        — / · /markets/[id] · /vault · /portfolio · /oracle · /admin
    ├── components/
    │   ├── bet-slip.tsx            — 5-step shielded bet chain (one button click)
    │   ├── sealed-countdown.tsx    — Window countdown + price reveal animation
    │   └── oracle-room.tsx         — Live agent WebSocket dashboard (~1250 LOC)
    └── lib/
        ├── eamm.ts                 — relayer-sdk init, encryption, sealed-window subscriptions
        └── vault.ts                — wrap → setOperator → deposit → lock → claim → withdraw

⚡ Running Locally

1. Contracts

cd contracts && npm install
cp .env.example .env   # fill DEPLOYER_PRIVATE_KEY, ORACLE_PRIVATE_KEY, SEPOLIA_RPC_URL

npx hardhat compile
npx hardhat run scripts/deploy-sepolia.ts --network sepolia
# Prints addresses → paste into contracts/.env, oracle/.env, and web/.env.local (all three)

npx hardhat run scripts/seed-3-markets.ts --network sepolia

# Optional: sealed-window demo market
npx hardhat run scripts/demo-sealed-window.ts --network sepolia
# Note the market ID; set WATCHED_MARKETS=<id> in oracle/.env

2. Oracle service

cd oracle && npm install && cp .env.example .env
# Required: SEPOLIA_RPC_URL, SEPOLIA_PRIVATE_KEY, contract addresses, GHOST_VAULT_EIP712_VERSION=2
# Optional: OPENAI_API_KEY, ACTIVE_ORACLE_AGENTS, WATCHED_MARKETS

npm run dev
# http://localhost:8092/oracle/health
# ws://localhost:8092/oracle/ws/:marketId

3. Frontend

cd web && npm install && cp .env.local.example .env.local
# Fill NEXT_PUBLIC_* contract addresses, NEXT_PUBLIC_PRIVY_APP_ID, NEXT_PUBLIC_ORACLE_URL

npm run dev   # http://localhost:3000

Optional: FastAPI orchestration layer

python -m venv .venv && source .venv/bin/activate
pip install -r api/requirements.txt
uvicorn api.main:app --reload   # http://localhost:8000/docs

The frontend works without this. It's an orchestration surface for relay / server-side flows.

🧪 Tests

cd contracts
npx hardhat test --network hardhat   # mock FHE — fast, CI-friendly
npx hardhat test --network sepolia   # real FHE coprocessor — slower, costs gas

Full test coverage — GhostEAMM.test.ts

placeBet          ✔ encrypted YES + NO bets accepted
                  ✔ BetPlaced event has 3 args only — no amount field
                  ✔ self-decrypt of own position correct
                  ✔ cross-decrypt by another user rejected
                  ✔ multi-bet accumulation in encrypted pool

min-bet guard     ✔ above-min: stored handle equals original amount
                  ✔ below-min: silently zeroed — no dust position

resolveMarket     ✔ resolver / owner can resolve; others revert
                  ✔ double-resolve reverts; post-resolve placeBet reverts

grantPositionAccess ✔ winner-only ACL after YES resolution
                  ✔ both sides granted after cancellation
                  ✔ rejects users with no position; rejects active markets

sealed windows    ✔ open → snapshot handles non-zero
                  ✔ bets accepted during open window
                  ✔ bets blocked between expiry and settlement
                  ✔ settle-before-expiry reverts
                  ✔ resolver decrypts pool ciphertexts after settle
                  ✔ double-settle reverts; bets reopen after settle
                  ✔ publishWindowPrice emits PriceRevealed
                  ✔ publish on unsettled window reverts
                  ✔ getActiveWindowIdx returns max-uint when no active window

admin             ✔ pause / unpause gate all state changes

📋 Operational Notes

Always full-deploy. deploy-sepolia.ts wires GhostMarket → GhostEAMM atomically. Redeploying only the EAMM without updating GhostMarket.setEamm leaves metadata and encrypted state on different contracts (MarketNotFound reverts on bets). Use scripts/redeploy-eamm.ts for EAMM-only upgrades — it handles the rewire.
EIP-712 domain version is "2". GhostVaultV2 uses EIP712("GhostVault", "2"). Set GHOST_VAULT_EIP712_VERSION=2 in oracle .env.
Sealed windows need a watcher. Set WATCHED_MARKETS=<id> in oracle/.env, or rely on dynamic discovery via the SealedWindowOpened event listener.
Mainnet swap. Replace underlying USDC + cUSDC addresses with Circle USDC + a production ERC-7984 wrapper. Zero contract or frontend code changes needed.

🛠 Tech Stack

Layer	Stack
	Next.js 15 · React 19 · Tailwind v4 · viem v2 · Privy v3
	`@zama-fhe/relayer-sdk` · `fhevmjs` (browser-side encryption + ZKPoK)
	Solidity 0.8.26 · Hardhat · `@fhevm/solidity` · OpenZeppelin v5
	Node.js · Express · WebSockets · OpenAI gpt-4o-mini
	Zama FHEVM coprocessor · KMS gateway · Sepolia relayer

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GhostMarket

Table of Contents

👻 What It Is

Problems Solved

🏗 Architecture

End-to-End Payout Flow

🔐 Privacy Model

🔬 Encrypted Stack

1. ERC-7984 Confidential Vault

2. Encrypted AMM

3. Sealed-Bid Windows

4. Confidential Settlement

🤖 Oracle Agent Quorum

🧭 User Journey

📦 Deployed Contracts

🗂 Repository Layout

⚡ Running Locally

1. Contracts

2. Oracle service

3. Frontend

🧪 Tests

📋 Operational Notes

🛠 Tech Stack

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Name		Name	Last commit message	Last commit date
Latest commit History 63 Commits
api		api
contracts		contracts
docs		docs
oracle		oracle
web		web
.gitignore		.gitignore
README.md		README.md

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GhostMarket

Table of Contents

👻 What It Is

Problems Solved

🏗 Architecture

End-to-End Payout Flow

🔐 Privacy Model

🔬 Encrypted Stack

1. ERC-7984 Confidential Vault

2. Encrypted AMM

3. Sealed-Bid Windows

4. Confidential Settlement

🤖 Oracle Agent Quorum

🧭 User Journey

📦 Deployed Contracts

🗂 Repository Layout

⚡ Running Locally

1. Contracts

2. Oracle service

3. Frontend

🧪 Tests

📋 Operational Notes

🛠 Tech Stack

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