Veil

Veil is the first lending protocol on Solana where you can borrow against native Bitcoin, physical gold, or any on-chain asset — with an optional privacy layer.

No bridges. No wrapping. No public visibility into your positions.

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The Problem

DeFi lending today has two structural limitations that have kept sophisticated capital on the sidelines.

Liquidity fragmentation. Most wealth sits in BTC, ETH, and physical gold. To use it in DeFi, you have to bridge or wrap it — adding custody risk, smart contract risk, and trusted third parties. Institutions won't pledge $1M of native BTC into a protocol that requires them to trust a bridge operator. Billions in capital sit idle.

Transparent execution. Every position, balance, and borrow amount is publicly visible on-chain. Your collateral ratio, your liquidation price, your strategy — all readable by anyone with an RPC call. For funds, market makers, and treasury managers, this is a structural non-starter.

Veil removes both constraints through a single, unified interface.

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How It Works

Native Collateral — No Bridging

Veil integrates Ika's dWallet infrastructure. A dWallet is a programmable, cross-chain signing mechanism governed jointly by the user and Ika's MPC network. This means a Solana program can enforce collateral logic against native Bitcoin or Ethereum without bridges or custodians.

If a position becomes undercollateralized, the liquidation instruction triggers a dWallet signing event that settles directly on the native chain. Solana acts as the coordination layer for capital from every chain.

Physical Gold as Collateral — via Oro

Veil integrates Oro's GRAIL platform to support physical gold as collateral. Oro handles the operational complexity — custody, regulatory compliance, and on-chain settlement — so users can pledge gold-backed assets directly. This makes Veil the first DeFi lending protocol where physical gold sits alongside native BTC and ETH as productive collateral.

Optional Privacy — FHE Layer

Each user position has a privacy toggle. When enabled, Veil integrates Encrypt's FHE infrastructure: balances and borrow amounts are stored as ciphertext on-chain, and health factor computations execute over encrypted data using the REFHE scheme. Observers see nothing — not the collateral, not the debt, not the liquidation price. Protocol invariants (solvency, health factor enforcement) are maintained without exposing position data publicly.

Flash Loans

Veil includes a native flash loan primitive. Borrow any amount up to the pool's free liquidity within a single Solana transaction — no collateral required. The funds must be returned with a 0.09 % fee by the final instruction of the same transaction. If repayment is missing or insufficient, the transaction reverts atomically and no funds move. Fee is split 90 % to LPs, 10 % to the protocol.

Efficient On-Chain Execution

The core protocol is built using Pinocchio, Solana's zero-dependency, zero-copy program framework. This gives Veil significantly lower compute unit consumption than equivalent Anchor-based protocols — which matters at scale when health factor checks run on every borrow and liquidation.

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Supported Collateral

Asset	Source	Settlement
Native BTC	Ika dWallet	Bitcoin mainnet
Native ETH	Ika dWallet	Ethereum mainnet
Physical Gold	Oro / GRAIL	On-chain (Oro-settled)
SPL tokens / LSTs	Native Solana	Solana

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Tech Stack

Layer	Technology
Blockchain	Solana
Program framework	Pinocchio
Cross-chain infra	Ika (dWallet / MPC)
Gold collateral	Oro / GRAIL
Privacy layer	Encrypt (FHE / REFHE)
Oracle	Pyth

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Protocol Design

• Kink-based interest rate model
• Health factor engine with oracle-fed pricing (Pyth)
• Cross-chain liquidation via programmable MPC signing
• Flash loans — atomic, uncollateralized, single-transaction (0.09 % fee)
• Privacy toggle per position (opt-in FHE)
• Designed to upgrade in place as Ika and Encrypt reach mainnet — no migration required

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Repository Structure

/docs                        # Rendered docs site (Fumadocs); see docs/content/
├── content/                 # Public docs: program-reference/, integration/, concepts/, sdk/, security/
└── internal/                # Non-public engineering notes (status archive, ika roadmap)

/programs
└── src/
    ├── instructions/        # deposit, withdraw, borrow, repay, liquidate, flash_*, cross_*, ika_*, private_*
    ├── state/               # LendingPool, UserPosition, EncryptedPosition, IkaDwalletPosition
    ├── fhe/                 # Encrypt CPI helpers + FHE graph builders
    ├── errors.rs
    ├── math.rs
    └── entrypoint.rs

/veil-landing                # Next.js dapp + marketing site
└── frontend-e2e-tests/      # Playwright e2e tests (specs/, helpers/, setup/)

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Who Is This For

• Institutional traders and funds — BTC/ETH holders who need capital efficiency without custody or privacy tradeoffs
• Market makers — need fast liquidity without leaking inventory or strategy
• DAO treasuries — large idle holdings, can't justify bridge risk to governance
• Gold holders — physical gold that has never been productive on-chain

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Status

Early-stage. Core protocol implementation is in progress.

• Protocol design and architecture
• Core program (Pinocchio) — instructions, state, entrypoint
• Flash loans — FlashBorrow / FlashRepay with atomic enforcement
• FHE privacy layer — EncryptedPosition, EnablePrivacy + 4 private instructions, computation graph definitions, EncryptContext wrapper
• Encrypt CPI activation (pending SDK pinocchio 0.11 support)
• Ika dWallet integration
• Oro/GRAIL gold collateral integration
• Oracle integration (Pyth)
• Testnet deployment

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Disclaimer

Experimental. Not production-ready. Use at your own risk.