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Update README for clarity and accuracy
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README.md

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[![License](https://img.shields.io/badge/license-MIT-blue.svg)](LICENSE)
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[![Branch](https://img.shields.io/badge/branch-zkc0dl3-blueviolet.svg)](https://github.com/ColinRitman/C0DL3/tree/zkc0dl3)
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**C0DL3** is a sovereign ZK privacy darkpool Layer-3 for the zkSync ecosystem. All balances are private by default — every account is an AA smart contract wallet storing Pedersen commitments instead of plaintext values. A shielded pool provides full sender/recipient anonymity on demand. Fixed-denomination bridge pools (HEAT, ZK, COLD, ETH) create anonymity sets at the privacy boundary. ZK validity proofs are generated via SP1 (RISC-V zkVM).
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**C0DL3** is a sovereign ZK privacy darkpool Layer-3 for the public zkSync ecosystem. All balances are private by default — every account is an AA smart contract wallet storing Pedersen commitments instead of plaintext values. A shielded pool provides full sender/recipient anonymity on demand. Fixed-denomination bridge pools (HEAT, ZK, COLD, ETH) create anonymity sets at the privacy boundary. ZK validity proofs are generated via SP1 (RISC-V zkVM).
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## Darkpool Bridge (Era ↔ C0DL3)
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Privacy-preserving canonical bridge — the privacy boundary between public DeFi and the C0DL3 darkpool. Fixed-denomination pools prevent amount-based correlation. Inside C0DL3, amounts are arbitrary (Pedersen commitments). No multisig, no oracle — security = SP1 proofs.
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Privacy-preserving canon bridge — the privacy boundary between public DeFi and the C0DL3 darkpool. Fixed-denomination pools prevent amount-based correlation. Inside C0DL3, amounts are arbitrary (Pedersen commitments). No multisig, no oracle — security = SP1 proofs.
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**Deposit (Era → C0DL3):**
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```
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| Token | Small | Medium | Large | Role |
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|-------|-------|--------|-------|------|
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| HEAT | 10,000 | 100,000 | 1,000,000 | Native gas token |
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| ZK | 100 | 1,000 | 10,000 | Era native — privacy for ZK holders |
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| CD | 1,000 | 10,000 | 100,000 | COLDAO governance |
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| ETH | 0.1 | 1 | 10 | Bluechip base asset |
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| HEAT | 100,000 | 10 Million | 1 Billion | Native gas token |
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| ZK | 1000 | 10,000 | 100,000 | Era native — privacy for ZK holders |
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| C0LD | 0.0001 | 0.001 | 0.1 | COLDAO governance |
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| ETH | 0.1 | 1 | 10 | Based asset |
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**Why 3 denominations per token:**
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- Expected anonymity = N/K (N=total deposits, K=tiers) — 3 tiers leak only 1.58 bits about amount
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- Geometric 10x spacing covers 3 orders of magnitude (retail through whale)
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- Each additional tier dilutes anonymity by 1/(K+1) — 4th tier costs 25% for marginal efficiency gain
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- Minimum anonymity set threshold: 50 deposits per pool before meaningful privacy
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- Exponential spacing covers 3 orders of magnitude (retail through whale)
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- Each additional tier dilutes anonymity by 1/(K+1) — 4th tier costs 25% for only marginal efficiency gain
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- Minimum anonymity set threshold: 50 deposits per pool before meaningful privacy begins
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**Per-token denomination registry:**
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- Configurable via governance (sequencer can `addToken()` / `addDenomination()`)
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- Maximum 5 tiers per token (prevents over-fragmentation)
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- On-chain anonymity set counters via `getPoolHealth()` users verify pool safety before depositing
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- New tokens added only when existing pools have healthy anonymity sets
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- Maximum 3 tiers per token (prevents over-fragmentation)
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- On-chain anonymity set counters via `getPoolHealth()` lets users verify pool safety before depositing
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- New tokens added by C0LDAO approval, only when existing pools have healthy anonymity sets
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**Privacy features:**
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- Fixed denomination pools — prevents amount-based deposit/withdrawal correlation
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- Fixed denomination pools prevent amount-based deposit/withdrawal correlation
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- Withdrawal amounts need not match deposit amounts
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- No on-chain link between deposit address and withdrawal address
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- Time-delayed withdrawals (1-4 hour window for timing decorrelation)
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| Endpoint | Method | Description |
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|----------|--------|-------------|
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| `/bridge/status` | GET | Bridge pipeline status (deposits, withdrawals, tree root) |
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| `/bridge/pools` | GET | Darkpool anonymity set health for all tokens and tiers |
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| `/bridge/pools` | GET | Darkpool anonymity sets for all tokens and tiers |
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| `/bridge/withdraw` | POST | Request withdrawal from C0DL3 to Era |
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| `/bridge/withdrawal_proof/{pos}` | GET | Merkle proof for claiming on Era |
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- [x] Client-side partial proving (commitment knowledge proofs)
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- [x] Privacy precompile suite (Schnorr, conservation, ElGamal, Ed25519)
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- [x] Ethereum-compatible precompiles (ecRecover, SHA-256, BN254, ModExp)
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- [x] Native AA wallets (privacy-by-default balances)
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- [x] Native AA wallets (private-by-default balances)
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- [x] Paymaster gas abstraction
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- [x] SDK auto-shield flow
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- [x] Guest-side AA verification (SP1 Phase 7)
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- [x] Reference Solidity contracts (PrivateWallet.sol, Paymaster.sol)
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- [x] WebAuthn wallet auth (P-256 passkeys precompile)
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- [x] SP1 proving pipeline
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- [x] Settlement contracts on zkSync Era
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- [x] Data availability (via zkSync Era → Ethereum L1)
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- [x] Data availability (via zkSync Era L2 → Ethereum L1)
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- [x] Persistent state storage (sled)
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- [x] Genesis config + chain ID (0xC0D13)
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- [x] Testnet faucet
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- [x] Ethereum JSON-RPC compatibility
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- [x] Block explorer UI
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- [x] Docker image + docker-compose
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- [x] Live Era Sepolia settlement (ethers, dual-mode)
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- [x] Darkpool bridge — per-token denominations, anonymity set tracking (HEAT, ZK, CD, ETH)
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- [x] Darkpool bridge — per-token denominations, anonymity set tracking (HEAT, ZK, C0LD, ETH)
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- [x] Withdrawal tree root committed in SP1 proofs (BlockExecutionClaim)
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- [x] Bridge deposit → shielded pool wiring (auto-mint on block production)
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- [x] Bridge deposit → shielded pool (auto-mint on block production)
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