Security Features

security overview

Overview

The zUSD protocol implements multiple layers of security through Miden Network's zero-knowledge proof system and a robust verification architecture. Here are the key security features:

Publisher Registration & Verification

• Pulblisher (Trusted Custodian, Trustless Asset Manager) must be registered.

• Registration requires approval from ABS Finance

• Publisher identities are cryptographically verified on-chain

Reserve & Liability Proofs

• Custodians make asset merkle tree root

• Custodians make proof of reserve, liability

• Custodians submit proof commitment on chain

• Asset Managers and Users verify commitment on chain

Position Proofs

• Asset Managers position merkle tree root

• Asset Managers submit position commitments

• Asset Managers and Users verify commitment on chain

Inclusion Proofs

• Users receive cryptographic proof of inclusion for all transactions

• Users verify commitment on chain

Zero-Knowledge Infrastructure

• All proofs are generated and verified using Miden VM

• Privacy-preserving transaction verification

• Scalable proof generation and verification

• Resistant to manipulation attempts

Automated Checks

• Continuous monitoring of system parameters

• Automated ratio verification

• Real-time reserve adequacy checks

• Immediate flagging of suspicious activities

Emergency Procedures

• Automated circuit breakers

• Multi-sig emergency shutdown capability

• Graceful degradation protocols

• Clear recovery procedures

Auditing & Transparency

• All operations leave verifiable proof trails

• Public verification of system state

• Regular automated audits

• Transparent reserve reporting

The security architecture ensures that the system maintains integrity while providing necessary transparency and verifiability for all participants.