VeilVM

A custom Avalanche VM for privacy-preserving prediction markets, built on HyperSDK.

Not a fork of Subnet-EVM — a purpose-built execution environment with native ZK proof verification, commit-reveal batch auctions, and a shielded ledger.

ChainId 22207 · Built in Go · Avalanche L1

Why a Custom VM?

EVM-based chains leak information. Order flow is visible in the mempool, trade sizes are public, and market manipulation is trivial. VeilVM solves this at the execution layer:

• Encrypted order commitments — Orders are committed as hashes, revealed only during batch clearing
• Proof-gated settlement — Batches clear only when a valid ZK proof is submitted and verified at consensus
• Shielded ledger — Balance and position privacy via ZK-SNARK proofs (Groth16/PLONK, BN254)
• Native fee routing — Protocol fees split across market-specific buyback (MSRB), chain-owned liquidity (COL), and operations

Actions

ID	Action	Description
0	Transfer	Transfer VEIL tokens
1	CreateMarket	Create a prediction market
2	CommitOrder	Submit encrypted order commitment
3	RevealBatch	Submit decryption share for batch reveal
4	ClearBatch	Clear batch auction (proof-gated)
5	ResolveMarket	Resolve with oracle attestation
6	Dispute	Dispute a market resolution
7	RouteFees	Split fees across MSRB/COL/Ops
8	ReleaseCOLTranche	Release treasury COL by epoch cap
9–10	MintVAI / BurnVAI	VAI stablecoin operations
11–14	CreatePool / AddLiquidity / RemoveLiquidity / SwapExactIn	Native UniV2-style DEX
15–16	UpdateReserveState / SetRiskParams	Governance updates
17	SubmitBatchProof	Submit ZK proof + Vellum proof blob
18	SetProofConfig	Governance proof requirements

ZK Proof Pipeline

Prover                          VeilVM Consensus
  │                                    │
  ├─ Compute clearPrice, volume,       │
  │  fillsHash from revealed orders    │
  │                                    │
  ├─ Hash: sha256("VEIL_CLEAR_V1" ║    │
  │  marketID ║ windowID ║ clearPrice  │
  │  ║ totalVolume ║ fillsHash)        │
  │                                    │
  ├─ Generate Groth16 proof ──────────►│
  │  (SubmitBatchProof)                │── Verify proof (gnark BN254)
  │                                    │── Store in Vellum proof storage
  │                                    │── Mint Glyph inscription
  │                                    │── Update Bloodsworn profile
  │                                    │
  ├─ ClearBatch ──────────────────────►│
  │                                    │── Verify proof record exists
  │                                    │── Match public_inputs_hash
  │                                    │── Verify Vellum blob integrity
  │                                    │── Execute settlement (fail-closed)

Proof Envelopes: VZK1 (proof + witness) and VZK2 (+ circuit ID). Circuit identity enforced at consensus when VEIL_ZK_REQUIRED_CIRCUIT_ID is set.

Companion EVM

A parallel EVM chain hosts DeFi primitives that bridge to VeilVM:

• WVEIL — Wrapped VEIL (ERC-20) via Teleporter bridge
• wsVEIL — Rebase-wrapping staked VEIL (Olympus-style)
• VAI — VEIL-native stablecoin
• Bond Vaults — Discount VEIL acquisition via LP/DAI bonds
• Intent Gateways — Cross-chain order and liquidity routing

See veil-contracts for the full Solidity suite.

Build & Run

# Build
go build ./...

# Run the VM
go run ./cmd/veilvm

# Generate ZK fixture keys
go run ./cmd/veilvm-zktool -out ./zk-fixture
go run ./cmd/veilvm-zktool -circuit shielded-ledger-v1 -out ./zk-fixture-shielded

# Run ZK benchmarks with real Groth16 proofs
PROOF_MODE=groth16 GROTH16_PK_PATH=./zk-fixture/groth16_clearhash_pk.bin \
  go run ./cmd/veilvm-zkbench

# Docker (local profile with strict verifier)
docker compose -f docker-compose.local.yml up -d --build

# Smoke test
node scripts/smoke-local.mjs --chain-id <CHAIN_ID>

RPC Extensions

Method	Description
clearinputshash	Compute canonical public-input hash
batchproof	Get batch proof metadata
vellumproof	Get stored proof blob
bloodsworn	Read validator trust profile
glyph	Read proof-derived inscription metadata

Ecosystem

Component	Repo
Smart Contracts	veil-contracts
Frontend	veil-frontend
Identity (ZK)	zeroid
Agent Runtime	anima-runtime
Documentation	veil-docs

Links

• Protocol: veil.markets
• Lab: thesecretlab.app
• Research: LatentSync Paper

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Markets that can't be front-run. Proofs that can't be faked.