psiX
Private Perps & Synthetic Assets
Created on 29th June 2025
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psiX
Private Perps & Synthetic Assets
The problem psiX solves
psiX solves two major problems: first, normal perps expose all trade data on-chain, enabling copy trading and liquidation sniping; psiX introduces private perps where traders can open positions without revealing any details, ideal for institutions and whales. Second, synthetic equities today rely on off-chain custodians and KYC, blocking most DeFi users; psiX allows anyone to mint fully on-chain, peg-stable synthetic equities (like sTSLA) that can be held, redeemed at oracle price, and used in DeFi, with cross-chain minting supported via CCIP.
Challenges we ran into
The biggest challenges came from building the new private trading mode. We faced bugs while encrypting orders and then correctly decrypting them before execution, as even small encoding mismatches caused transaction failures. Managing off-chain trade data using Merkle trees also introduced errors when generating and verifying proofs, especially when syncing tree roots with the on-chain state. Additionally, writing and debugging the zk-SNARK circuits to validate private trade batches without revealing individual positions was complex and required multiple iterations. We overcame these by adding extensive test cases, building custom debug tools for tree verification, and closely integrating circuit simulation with the Solidity contract logic
Tracks Applied (3)
Onchain Finance
Cross-Chain Solutions
Avalanche Track
Avalanche