Stealth SDK

AI-Enhanced Sender-Initiated Private Payments on Polygon

This version builds on your original protocol with AI-assisted fragmentation and automatic sweeping to recipient wallets, streamlining UX while preserving privacy.

Core Flow (Modified)

1. Deposit (Sender → Pools, AI-Optimized)

Alice enters a single payment intent (e.g., “Send 37 USDC to Bob”).

AI layer automatically:

Fragments the payment into standard denominations for privacy (e.g., 10+10+10+5+2).

Assigns each fragment to the best-mixed pools to maximize anonymity.

Generates stealth addresses for each fragment derived from Bob’s public key.

Prepares commitment hashes:

Poseidon(amount, stealth_address, secret S)

Fragmented deposits are submitted off-chain to a relayer, which pays gas and submits to Polygon.

1. Sender-Initiated Release with ZK Proofs

Alice triggers a ZK release proof, proving:

She knows the secret S.

Valid unspent commitments exist.

Authorization to release funds to stealth addresses.

The AI layer batches these proofs for efficient verification.

On-chain, pools verify the proofs without learning sender or recipient identity.

1. Automatic Payout (Sweeper Contract)

Funds are first sent to stealth addresses.

A sweeper/forwarder contract automatically transfers all fragments to Bob’s real wallet.

Bob does not need to manually claim; the process is fully automated.

Observers cannot trivially link Alice → Bob due to fragmentation, batching, and stealth addresses.

1. On-Chain Visibility

Polygon logs generic release events proving valid payouts.

Aggregated metrics show total throughput but no direct sender-recipient links.

1. Compliance & Auditing (Optional)

Alice or regulators can disclose secret S and receipts for selective auditing.

Sanctions screening can be performed using ZK membership checks before payout.

Compliance attestation tokens (from KYC/AML oracles) can be required for larger payments.

Why Polygon Still Fits

EVM compatibility: AI-prepared ZK proofs and Poseidon hashes can run efficiently on Polygon.

Low fees: Fragmentation and batching are economical.

Scalability: Supports high transaction throughput and multiple deposits/releases.

Interoperability: Can extend to zkEVM for even faster proof verification.

Benefits of Modified Approach Feature Original Modified Privacy Stealth addresses, ZK proof Same + AI-optimized fragmentation User Experience Manual transaction per deposit Single UX action; AI handles batching & stealth addresses Recipient Workflow Manual claim Automatic sweep to real wallet Gas Optimization Optional batching AI chooses pools and fragment sizes to minimize cost Compliance Optional auditing Same, fully compatible with regulatory disclosure Example in Action (Modified)

Alice wants to send 37 USDC to Bob.

AI fragments the payment: [10, 10, 10, 5, 2].

Stealth addresses are generated for each fragment.

Alice signs a single off-chain transaction intent; relayer submits to Polygon.

Pools verify ZK proofs; funds go to stealth addresses.

Sweeper contract automatically sends 37 USDC to Bob’s main wallet.

On-chain, observers see fragmented, mixed deposits, breaking linkability.

Alice can later disclose secrets for audits if required.

✅ Key Advantages

Fully privacy-preserving for both sender and recipient.

Seamless UX — Alice and Bob don’t manage multiple addresses or claims.

Gas-efficient through AI-guided batching.

Regulator-friendly — supports selective disclosure, sanctions screening.

We built the project using Polygon, leveraging EVM smart contracts with Poseidon hashing and zero-knowledge proofs (ZK-SNARKs) for confidential verification. An AI layer (built with Python + TensorFlow) intelligently fragments payments, selects optimal pools, and batches proofs for gas efficiency. The frontend (React + Next.js) interacts via ethers.js, while an off-chain relayer handles gasless submissions. We implemented a sweeper contract to auto-transfer funds from stealth addresses to recipients — a hacky yet seamless UX trick that makes privacy fully automated.