A way for users to anonymously place a bid for daily Nouns auctions.
Privacy is a fundamental human right. But privacy concerns play a part in discouraging adoption beyond the crypto niche, as traditional investors hesitate to expose how much they trade on a trading dapp like Uniswap, or how often they invest & borrow on a lending dapp like Compound. Especially, in the more relevant context to Nouns, the “bluechip” NFT collectors wouldn’t be willing to disclose to the world which NFT assets they’ve collected and are holding in their wallets.
Additionally, people often intend to keep secret sauce for their own. That’s also true for professional NFT traders who wouldn’t want to retire their portfolio and trading strategy to others.
For example, by observing recent Nouns bids, we could know which bids poap.eth placed, which bids he won and which nouns he has in his Ethereum wallets.
We are from the Incognito core team who have been building a privacy layer for web3 since 2018. Incognito network is powered by over 3100 nodes with about $250M shielded (a.k.a deposited) volume through 13 supported bridges to popular blockchains like Ethereum, BNB Chain, Polygon, etc. The smart contract code and audit report of the bridges could be found here and here respectively.
We’ve previously brought privacy to popular DEXs such as Uniswap, Curve and PancakeSwap in the past. Similarly, our solution for the aforementioned problems is integrating Incognito with Nouns smart contracts, from that we will be able to leverage Incognito’s privacy ecosystem in order to bring privacy to Nouns’ functions (bidding, voting, etc).
Let me describe a concrete workflow of anonymously placing a bid with Nouns here so that you can get how it works:
Step 1: User needs to shield ETH into Incognito then receive private ETH in the Incognito wallet
Step 2: From shielded private ETH in Incognito wallet, the user can anonymously place a bid for a newly created Noun.
Step 3: Once a Noun auction is settled, either ETH (if being losing bid) or Noun NFT (if being winning bid) will be returned to the vaults then re-shielded to a designated one-time address (OTA) in Incognito chain so that the user can receive private ETH or private Noun in the Incognito wallet.
Since all transactions initiated from Incognito wallet (to Incognito chain) are confidential and unlinkable, no one can guess which Ethereum address a bid is placed by, so which Nouns an Ethereum wallet has actually collected. For more details of how Incognito’s privacy-preserving works, please check out the topic.
nouns.wtf is a very interesting project with many innovative ideas, especially Nouns DAO that is a novel way to fund projects built by the community. But it would be far better if the funded projects can contribute back to the Nouns DAO from their revenue to continue incentivizing other good projects. So in our design, users who want to preserve their privacy by using the product, they will need to pay a small fee from their bidding amount and the fee will be transferred directly to Nouns DAO address.
We estimate this project taking ~1.5 month of dedicated effort by a team of:
- 1 cryptographer
- 1 blockchain engineer
- 2 app engineers (1 for the website and 1 for backend jobs)
- 1 designer
Functions to be delivered: one complete product including website, wallet extension (for interacting with the website and Incognito blockchain) that will be ready for users to:
- shield (a.k.a deposit) ETH into Incognito chain.
- anonymously place a Noun bid.
- store private ETH and/or private Noun NFT in Incognito wallet.
- unshield (a.k.a withdraw) ETH and/or Noun NFT back to Ethereum wallet.
Given a rate of 8 ETH/mo for each contributor, we’re requesting 60 ETH total for delivery of this first product.
Due to the integration’s flexibility, in addition to privacy bidding, other usecases such as privacy voting or privacy Nouns selling with popular marketplaces like OpenSea, X2Y2, etc are definitely possible.