Azoth Protocol

Privacy-first DAO with encrypted voting, confidential balances, and zero-signature UX using Inco's Trusted Execution Environment

Overview

Azoth Protocol implements a complete confidential governance system where all sensitive data remains encrypted throughout the lifecycle. Built with Inco's TEE technology, it ensures privacy for balances, votes, and proposal amounts while maintaining full functionality.

Architecture

The project consists of three main applications:

1. Smart Contracts (apps/inco-lite-template)

Hardhat-based Solidity contracts implementing confidential DAO operations:

• CUSDCMarketplace.sol: ETH to encrypted cUSDC conversion
• ConfidentialVault.sol: ERC-4626 vault with encrypted shares
• ConfidentialGovernanceToken.sol: Soulbound governance tokens
• AzothDAO.sol: Main governance with encrypted voting

Key Features:

• Encrypted storage using euint256 and ebool types
• Homomorphic operations (add, compare) on encrypted data
• ACL-based access control for decryption

2. Frontend (apps/nextjs-template)

Next.js application providing the user interface:

• Encrypted balance viewing with selective decryption
• Session key pattern for zero-signature UX (93% reduction in signatures)
• Confidential proposal creation and voting
• Multi-wallet support (MetaMask, Privy embedded wallets)

Tech Stack: Next.js 16, TypeScript, Wagmi, Privy, Inco SDK 0.7.10

3. AI Agent (apps/express-ts)

Express.js backend for AI-powered DAO assistance:

• Privacy-preserving proposal analysis using nilAI (TEE-based LLM)
• Encrypted chat history storage with nilDB
• Pay-per-query model via x402 micropayments
• ERC-8004 agent registration

Tech Stack: Express, Nillion nilAI/nilDB, x402 payments

Core Features

• Encrypted Balances: All cUSDC, vault shares, and cGOV tokens stored encrypted
• Private Voting: Votes and weights remain hidden until proposal finalization
• Hidden Proposal Amounts: Prevents MEV and front-running
• Session Keys: Sign once, decrypt unlimited times for 1 hour
• Dual-Token Economy: Separate economic (cUSDC) and governance (cGOV) tokens

Deployed Contracts (Base Sepolia)

Contract	Address
CUSDCMarketplace	0x637076397294eC96A92415Be58ca3e24fE44d529
ConfidentialVault	0xb0C98C67150Ec4594E8b9F234A04468cCfC0dD82
ConfidentialGovernanceToken	0xdA9B7d018e06f4CE070e708653da7629781A101b
AzothDAO	0x5d22F3621dD106Daf7Ea8EA7C93c8dF29f2Ae1e7

Getting Started

Prerequisites

• Node.js 18+
• pnpm
• Hardhat (for contracts)

Installation

pnpm install

Development

# Frontend
cd apps/nextjs-template && pnpm dev

# Contracts
cd apps/inco-lite-template && pnpm test

# AI Agent
cd apps/express-ts && pnpm dev

Documentation

• Smart Contracts Guide
• Frontend Integration
• Inco SDK Usage
• AI Agent Setup

User Flow

1. Purchase cUSDC: 0.01 ETH → 20 encrypted cUSDC
2. Deposit to Vault: Receive encrypted shares
3. Join DAO: Requires vault shares
4. Mint cGOV: 0.01 ETH → 10 encrypted governance tokens
5. Create Proposal: Encrypted amount + recipient
6. Vote: Encrypted weight (cGOV balance)
7. Enable Session Key: Sign once for unlimited decryptions
8. Finalize: Decrypt tallies with session key
9. Execute: 2-day timelock, transfer funds

Security & Privacy

• All computations happen in Inco's Trusted Execution Environment
• Zero-knowledge proofs for encrypted operations
• Cryptographic attestations for all decryptions
• No plaintext data ever leaves the TEE