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DarkONNET-Backend

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DarkONNET: Confidential Multi-Market Prediction Platform

DarkONNET is a privacy-preserving, automated prediction market built on the Zama fhEVM Sepolia Testnet. It leverages Fully Homomorphic Encryption (FHE) to keep user positions and market totals confidential while maintaining trustless, automated settlement.

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Current Status

• Smart contracts, faucet, deployment script, and oracle workers are implemented.
• Contract tests cover market admin actions, faucet minting/cooldown, encrypted betting, settlement claims, cancellation refunds, and two-phase early exits.
• Off-chain threaded market comments and real-time wallet notifications are available through the comments backend.
• The Next.js frontend application is built and integrated. It supports user wallet connection, market exploration, confidential betting via FHE, creator market requests, and a secure admin panel for creator market approval or resolving unresolved markets if there is any error.
• Token wrapping is planned but not implemented; current test liquidity comes from the confidential cUSDT faucet.
• Relayers read INFURA_API_KEY and CONTRACT_ADDRESS from .env.

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🛡️ The FHE Advantage

Traditional prediction markets (like Polymarket) are fully transparent. This leads to several issues:

• Copy-Trading: Large bettors can be tracked and copied.
• Market Manipulation: Visible pool totals allow whales to "swing" odds to their advantage.
• Privacy Leakage: A user's financial convictions are public knowledge.

DarkONNET solves this by using Zama's fhevm:

• Encrypted Bets: User bet amounts are stored as euint64.
• Private Liquidity: Total pool sizes are never revealed in plaintext until settlement.
• Confidential Payouts: Uses the Asynchronous Gateway Pattern to verify winnings and distribute payouts without ever exposing the math in the clear.

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🤖 The Oracle Ecosystem

Foundr features a fully autonomous relayer suite that bridges real-world data into the FHE environment across 7 categories:

Category	Data Provider	Logic
Esports	PandaScore API	Automatic match creation and winner settlement.
Sports	API-Sports	Covers Football (Premier League), NFL, and Formula 1.
Politics	NewsAPI (Reuters/AP)	Headlines-based settlement with consensus logic.
Tech	NewsAPI (TechCrunch/Verge)	Tracks product launches and tech milestones.
Crypto	CoinGecko API	Price-threshold markets (e.g., "BTC > $70k").
Finance	NewsAPI (WSJ/Bloomberg)	Economic indicators and interest rate decisions.
Culture	NewsAPI (Variety)	Entertainment awards and cultural events.

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🏗️ Architecture

1. Smart Contracts (src/):
   • ConfidentialPredictionMarket.sol: The core engine handling categorized markets and encrypted state.
   • EncryptedERC20.sol: A custom cUSDT stablecoin.
   • ConfidentialUSDTFaucet.sol: A rate-limited faucet for test liquidity.
2. Relayers (relayer/): 5 Node.js scripts that poll global APIs and trigger createMarket and settle functions on-chain.
3. Comments Backend (backend/comments/): Stores off-chain, wallet-linked market commentary, threaded replies, market metadata, and real-time notifications.
4. Coprocessor: Utilizes Zama's KMS and Gateway for secure decryption of payout ratios.

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🚀 Quick Start

1. Prerequisites

• Foundry
• Node.js (v18+)
• Zama fhEVM Environment

2. Environment Setup

Create a .env file with the following:

PRIVATE_KEY=your_wallet_private_key
INFURA_API_KEY=your_infura_api_key
ESPORTS_API_KEY=your_pandascore_key
NEWS_API_KEY=your_newsapi_key
SPORTS_API_KEY=your_apisports_key
CONTRACT_ADDRESS=0xYourDeployedPredictionMarketAddress
COMMENTS_PORT=8787
COMMENTS_DB_PATH=data/comments.json
API_AUTH_REQUIRED=true
API_ADMIN_WALLETS=0xYourAdminWallet

3. Automated Deployment

Deploy the entire ecosystem (Token, Faucet, Market) with one command:

./deploy.ps1

4. Activate the Oracles

Run your preferred oracle to start populating the market:

npm run oracle:crypto

5. Run Market Comments API

Start the off-chain threaded comments backend:

npm run comments:dev

The comments API supports:

• GET /api/markets/:marketId/comments
• POST /api/markets/:marketId/comments
• GET /api/markets
• GET /api/markets/:marketId
• PUT /api/markets/:marketId
• POST /api/markets/:marketId/participants
• GET /api/wallets/:walletAddress/notifications
• PATCH /api/wallets/:walletAddress/notifications/:notificationId
• POST /api/wallets/:walletAddress/notifications
• GET /api/wallets/:walletAddress/profile
• PUT /api/wallets/:walletAddress/profile
• WS /ws/notifications?walletAddress=:walletAddress

Mutating routes and wallet notification feeds require signed wallet authentication when API_AUTH_REQUIRED is not set to false. Clients sign this message shape with their wallet:

DarkONNET API request
Wallet: 0x...
Method: POST
Path: /api/markets/123/comments
Timestamp: 1770000000000
BodyHash: 0x...

Creator submissions must be signed by creatorWalletAddress. Comment, participant, profile, and notification actions must be signed by the target wallet. Admin/oracle metadata writes, market acceptance, decline, and resolution must be signed by a wallet listed in API_ADMIN_WALLETS.

Create a comment or reply with:

{
  "walletAddress": "0x1111111111111111111111111111111111111111",
  "displayName": "Alice",
  "body": "This market is heating up.",
  "parentId": "optional-existing-comment-id"
}

Market metadata is written by the relayers after on-chain market creation. The frontend can use it for market cards:

{
  "marketId": "123",
  "onchainMarketId": "123",
  "slug": "arsenal-vs-chelsea",
  "category": "Sports - Football",
  "title": "Arsenal vs Chelsea",
  "homeLogoUrl": "https://media.api-sports.io/football/teams/42.png",
  "awayLogoUrl": "https://media.api-sports.io/football/teams/49.png",
  "imageUrl": "https://example.com/article-or-league-image.png",
  "creatorWalletAddress": "0x1111111111111111111111111111111111111111",
  "status": "pending"
}

Notifications are stored by wallet address and pushed live to connected clients. Connect with:

ws://localhost:8787/ws/notifications?walletAddress=0x1111111111111111111111111111111111111111

The server creates notifications when:

• someone replies to a user's comment;
• a creator's market transitions to status: "accepted";
• a market transitions to status: "resolved" for wallets registered through POST /api/markets/:marketId/participants.

Live notification messages are JSON:

{
  "type": "notification.created",
  "notification": {
    "type": "market.resolved",
    "marketId": "123",
    "title": "Market resolved",
    "body": "A market you participated in was resolved: Arsenal vs Chelsea"
  }
}

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📜 Contract Addresses (Latest Sepolia)

• Prediction Market: 0x0dbeA55D54647759dC7eA6523d005B3c9C173730
• cUSDT Token: 0x3f14f7f11131E4698ED5Ad6A03C3EF1924cF3F0d
• Faucet: 0xd978f57d7fD0fAb73a99D7D68c962386F25E1D00

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⚖️ License

MIT - Built for the Zama dApp Demo Challenge.

c42f364 (initial commit: DarkONNET backend, oracles, and smart contracts)