Privacy GHO Token

Traditional blockchain technology, by its very nature, lacks inherent privacy features. All transactions are public, and anyone with interest can view your account balances and the amount involved in your transactions. This transparency has historically been necessary for the consensus of blocks, but poses a substantial privacy concern nonetheless. Imagine a scenario where your bank account details and financial transactions are visible to the public - an unsettling thought for most people and a considerable barrier to the widespread adoption of blockchain technology by large institutions and everyday users.

Recognizing this, we introduce the Private GHO token. This token is an enhancement on the existing GHO stablecoin and its novel issuance mechanism. The Private GHO token offers users encrypted balances and the capability to execute transactions with hidden amounts. This innovation in blockchain provides a level of privacy comparable to traditional finance services, where transaction details are only known to the parties involved.

We can imagine a DeFi ecosystem where activities such as staking, borrowing, and lending, are all possible while maintaining the privacy of their balances and transactions. The ability to permissionaly issue PrivateGHO in a safe and decentralized way is a radical transformation that redefines user expectations and possibilities in the DeFi/Aave ecosystem.

The development of the private GHO token is made possible by the recent breakthroughs in fully homomorphic encryption, specifically the fully homomorphic ethereum virtual machine (fhEVM). The fhEVM allows for the execution of smart contracts that can compute on private state. This means that it is now possible to encrypt user sensitive data on a public blockchain while still having that data accessible and programmable via a smart contract. The PrivateGHO contract maps a user's address to an encrypted integer(euint32), a data type offered by the TFHE library.

Here is an outline of the PrivateGHO life cycle: -First GHO is obtained on a supported chain via regular issuance. -It is then manually sent to our BridgeFacilitator contract that locks the GHO token and mints encrypted private GHO on fhEVM via our hyperlane bridge -Users then supply collateral (USDC currently) in order to borrow the equivalent amount of pGHO tokens