Welcome to the second edition of the Singularity Darkpool Deep Dive Series, where for the next couple of months, we will take a deeper look into the architecture, vision, and innovations powering Singularity’s institutional-grade on-chain Darkpool orderbook.
In each edition, we unpack a specific layer of the Darkpool — from how we prevent MEV and frontrunning to the role of cutting-edge cryptography like ZKPs, FHE, and MPC.
Built to offer compliance without compromise, Singularity delivers confidential, capital-efficient execution tailored for institutions ready to trade on-chain — privately, securely, and without leaving a trace.
Two weeks ago, we introduced our Darkpool and why it's essential in DeFi. This week, we're diving into how we ensure all Darkpool users remain compliant through our Compliance Oracle.
As institutional interest in DeFi grows, so does the demand for confidentiality and compliance — two qualities rarely found together in today’s on-chain trading landscape.
Singularity’s Darkpool solves this by creating a fully private, institutional-grade on-chain orderbook. But there's one critical layer that makes it regulatory-ready without compromising privacy: the Compliance Oracle.
Most darkpools in TradFi require counterparties to be verified — ensuring they meet legal, financial, and institutional standards. The same holds true in DeFi.
But here’s the challenge: In a world where trade data is encrypted, order intent is hidden, and wallet addresses are obfuscated, how do you ensure every participant is still compliant?
That’s where the Compliance Oracle comes in.
The Compliance Oracle is Singularity’s unified KYC/KYB verification layer — a system that enables users and entities to verify once and access all integrated protocols and chains.
It works by:
This identity token becomes a user’s passport to the Singularity ecosystem — and critically, to the Darkpool.
Singularity’s Darkpool is designed to hide all trade-related data — asset pair, price, amount, and wallet address — using FHE, MPC, and ZKPs. But compliance doesn’t disappear; it just needs to evolve.
Here’s how the Compliance Oracle integrates directly into the Darkpool:
Verified Participants Only
Only users who have passed KYC/KYB through the Compliance Oracle can access the Darkpool — ensuring that every counterparty is known, even if their wallet and trade data remain private.
Because the access token is separate from the wallet address and uses privacy-preserving tech (like zkMe), compliance doesn’t leak any identity data on-chain. It proves compliance without revealing identity — the core principle of privacy-preserving regulation.
Users can bridge their access token across chains (e.g., Ethereum → Arbitrum) and continue trading in the Darkpool without repeating the KYB/KYC process. This makes Singularity's compliance layer portable, scalable, and frictionless.
Institutions entering DeFi want:
Singularity delivers all three — and the Compliance Oracle is the bridge that makes this possible.
It turns on-chain anonymity from a blocker into a feature — verifiable privacy, not unverifiable chaos.
Thanks for reading the second edition of Singularity’s Darkpool Deepdive series.
In the subsequent deep dives, we’ll take you behind the curtain to explore additional core components that power Darkpool.
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