SquirrelPay

SquirrelPay enables companies to pay their employees on-chain without full details being made public. Attestations are used to track legitimate funds through a mixer pool and optionally allow the employee to prove the source of the funds when under scrutiny, while maintaining privacy when fund source isn’t important.

1. The employer deposits payroll funds in sDAI on Polygon zkEVM into a mixer pool. During this deposit process, they create an attestation using Ethereum Attestation Service describing the source and purpose of the funds.

2. A fractional attestation token is automatically minted for the deposit, with quantity equal to that of the amount of sDAI transferred into the pool, linked to the attestation of the company.

3. The employer transfers the beneficial rights to portions of the assets to its employees. Those rights intrinsically include both the sDAI and the fractional attestation tokens. This is a privacy-preserving transaction — no funds are moving in or out of the pool, and it can be accomplished with ZKP.

4. The employee who has received the fund can perform as many additional beneficial rights transfers as they want within the pool.

5. Eventually, the beneficiary of funds in the pool can withdraw. If they want to remain anonymous, they can withdraw the funds without revealing the related attestation (withdraw sDAI only). If, however, they are under regulatory scrutiny and want to prove the legitimacy of the funds, they can request an attested withdrawal, in which case they will receive both sDAI as well as the associated fractional attestation tokens, proving the specific source of the funds that they’re withdrawing.