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BNB CHAIN

Description​

Xythum pioneers darkpool-powered infrastructure to eliminate MEV without compromising scalability or security. Our flagship product is Xythum Protocol, an MEV-resistant Layer 2 on BNB Chain that leverages encrypted "darkpools" to ensure transaction confidentiality and fairness. Traditional blockchains expose user transactions to MEV exploitation (front-running, sandwich attacks), creating an unfair trading environment. Xythum solves this by encrypting transactions in darkpools using silent threshold encryption, rendering them invisible to validators until blocks are finalized.

By pioneering darkpool technology, Xythum transforms BNB Chain into the premier destination for fair, high-speed DeFi where users trade without fear of exploitation, and developers build without MEV-driven constraints.

Key innovations:

  • Dark Mempools: Transactions are encrypted and batched in decentralized darkpools, preventing sequencers from exploiting order flow.
  • Threshold Decryption: A decentralized SMPC network/TEE Decrypters collaboratively decrypts blocks, ensuring no single party gains an informational advantage.
  • Zero-Knowledge Proofs (ZKPs): Validate transaction integrity (signatures, state) without revealing sensitive details, maintaining darkpool confidentiality.
  • Scalable Execution: Built on Robust L2 stack with 0.2-second blocks and BNB Chain’s blobType transactions, Xythum achieves HIGH TPS rivaling Solana while preserving Ethereum-grade security.

For developers, Xythum offers darkpool SDKs and prebuilt ZK circuits to seamlessly deploy MEV-resistant dApps (e.g., DEXs, NFT platforms). Unlike fragmented solutions (e.g., Flashbots’ relays or Anoma’s slow FSS), Xythum integrates MEV resistance natively into BNB Chain, combining darkpool privacy with enterprise scalability.

Project Summary​

We aim to build Xythum, an MEV-resistant and hyper-scalable Layer 2 protocol on BNB Chain, designed to eliminate front-running, sandwich attacks, and transaction censorship. MEV exploits degrade user trust and fairness in DeFi by allowing validators to profit from manipulating transaction order. Xythum addresses this via a SMPC network / TEE based Sequencing with silent threshold encryption, ensuring transactions remain encrypted until block finalization.

Key innovations include:

  • Threshold Encryption with Silent Setup: Eliminates interactive Distributed Key Generation (DKG), enabling scalable, trustless encryption without centralized relays.
  • Zero-Knowledge Proofs (ZKPs): Validate transaction integrity (signatures, balances, nonces) without revealing sensitive details.
  • Epoch-Based Fair Sequencing: Encrypted transactions are batched and decrypted collaboratively by SMPC nodes / TEE based Decryptor, ensuring order fairness and censorship resistance.
  • Scalability via Robust Nitro Stack: Leveraging robust L2 framework with 0.2-second block times and parallelized silent decryption, Xythum achieves near-instant finality.
  • BlobType Transactions: Integration with BNB Chain’s blob-carrying capability enables High TPS surpassing existing L2s and rivaling Solana by optimizing data availability and reducing calldata costs.

Xythum integrates seamlessly with BNB Chain, inheriting its scalability while adding MEV-resistant execution. By encrypting mempools and randomizing order, users experience reduced slippage and equitable trade execution. The protocol’s silent setup reduces overhead, enabling dynamic participation of validators secured via staking.

funding will accelerate core development, including SMPC node infrastructure, ZKP circuits, and BNB Chain integration. This positions BNB Chain as a leader in MEV-resistant DeFi, attracting users and protocols seeking fair, confidential, and scalable transaction execution.

Project Milestones*​

Be specific with a breakdown of how the funds will be spent and what will be the end deliverable and product that will be built using the funding.

We request $180,000 to deliver Xythum, an MEV-resistant, hyper-scalable L2 on BNB Chain, within 6 months. Funds will be allocated to salaries (80%), infrastructure (15%), and review/Hosting/Benchmarking/docs (5%).

Milestone 1: Infrastructure & Core Setup (Month 1-2)​

  • Activities:
    • Finalize L2 stack (Nitro + BSC compatibility).
    • Implement silent threshold encryption (HINTS libraries) and ZK proof schemas.
    • Build encrypted mempool prototype with AWS Nitro TEE.
  • Deliverables:
    • Forked L2 testnet with encrypted transactions.
    • Basic ZK circuits for checks.
    • Static landing page + wireframes.
  • Cost: $50k (Team setup, SGX/TEE licensing, testnet infrastructure).

Milestone 2: Protocol Development (Month 3-4)​

  • Activities:
    • Integrate threshold decryption logic and TEE node coordination.
    • Develop Application Layer changes required under RPCS for encrypted tx submission.
    • Deploy test dApps (Uniswap/Aave forks) with MEV-resistant execution.
  • Deliverables:
    • Fully functional encrypted sequencer.
    • SDK for encrypted tx signing.
    • Testnet dApps operational.
  • Cost: $60k (Backend/frontend integration, dApp deployment).

Milestone 3: Optimization & Security (Month 5-6)​

  • Activities:
    • Stress-test protocol (HIGH TPS via blobType TX + Nitro’s 0.2s blocks).
    • Conduct audits (TEE/SMPC, ZK circuits).
    • Finalize MEV metrics dashboard and bridge UI.
  • Deliverables:
    • Audit reports + MEV-resistant mainnet.
    • Production-ready explorer with real-time analytics.
    • Documentation and developer toolkit.
  • Cost: $40k (Audits, CDN hosting, final polish).

Final Product​

  • MEV-Resistant L2: Encrypted mempools, threshold decryption, ZK-validated transactions.
  • Scalability: HIGH+ TPS via blobType TX, Nitro rollups, sub-second finality.
  • User Tools: explorer, and bridge with BNB Chain integration.

This funding positions BNB Chain Ecosystem as the leader in fair, scalable DeFi, attracting users and protocols seeking Solana-like speed with Ethereum-level security.

​

Ecosystem Benefit*​

How will the project/product that you plan to build with the funding benefit the BNBChain ecosystem? How will it benefit developers on BNBChain?

Xythum will elevate the BNB Chain ecosystem by delivering MEV-resistant, high-throughput infrastructure that directly addresses critical pain points for users and developers:

  1. Fairer DeFi: By encrypting mempools and enforcing threshold decryption, Xythum eliminates front-running and sandwich attacks, fostering trust in BNB Chain’s DeFi ecosystem. Developers can build protocols without fearing MEV-driven losses, attracting ethical traders and institutions.
  2. Unmatched Scalability: With HIGH TPS (via blobType transactions) and 0.2-second block times (Nitro stack), Xythum enables BNB Chain to rival Solana in speed while maintaining Ethereum-level security. Developers gain a platform for high-frequency dApps (e.g., perpetual DEXs, gaming) without congestion risks.
  3. Privacy-Preserving Tools: Silent threshold encryption and ZK proofs allow developers to create novel use cases—confidential swaps, private NFT auctions, and compliant institutional DeFi—without compromising performance.
  4. Seamless Integration: Xythum’s EVM compatibility and BNB Chain-native bridges let developers migrate dApps effortlessly, leveraging existing tooling (Hardhat, Remix) while accessing cutting-edge MEV resistance.
  5. Ecosystem Growth: By positioning BNB Chain as a leader in MEV-resistant tech, Xythum attracts projects seeking fairness and scalability, driving liquidity, user adoption, and cross-chain innovation.

For developers, Xythum offers prebuilt ZK circuits, encrypted transaction SDKs, and gas-efficient blobType TX support—reducing time-to-market and operational costs. Together, these benefits solidify BNB Chain’s position as the premier chain for secure, scalable, and equitable decentralized applications.

project innovation*​

What is unique and innovative about your project?

Xythum’s innovation lies in pioneering darkpool technology a breakthrough approach that eliminates MEV while achieving Solana-like scalability on BNB Chain. Unlike existing solutions, Xythum uniquely combines:

  • Darkpool Mempools: Transactions are encrypted using silent threshold encryption and batched in decentralized darkpools, rendering them invisible to validators until blocks are finalized. This prevents front-running, sandwich attacks, and censorship—addressing MEV at its root.
  • Silent Setup Threshold Encryption: Unlike traditional threshold schemes requiring complex, interactive key ceremonies, Xythum’s non-interactive setup enables dynamic participation of nodes without trusted parties. This ensures darkpools remain scalable (handling HIGH TPS via BNB Chain’s blobType TX) and Byzantine fault-tolerant.
  • ZK-Proof Shielded Execution: Every encrypted transaction in darkpools is validated via zero-knowledge proofs (ZKPs), ensuring correctness (signatures, state, nonces) without exposing sensitive details. This preserves confidentiality while preventing spam or invalid transactions.
  • Epoch-Based Decryption: Darkpool transactions are decrypted collaboratively by a decentralized SMPC network, ensuring no single entity gains timing or content advantages. Combined with 0.2-second blocks, this achieves near-instant finality without MEV risks.

Why It Stands Out:

  • No Trusted Relays: Unlike centralized relays, Xythum’s darkpools are fully decentralized/ TEE SGX based.
  • Cost Efficiency: Silent setup reduces overhead by 90% vs. interactive DKG-based systems.
  • BNB Chain Synergy: Native blobType TX integration leverages BNB Chain’s high throughput, making Xythum the only L2 offering MEV-proof darkpools at Solana-scale speeds.

By merging darkpool confidentiality, ZK guarantees, and battle-tested scalability, Xythum redefines fair, high-performance DeFi on BNB Chain.

Project Competitive Landscape*​

What's the current competitive landscape and how does your project compare to the main competitors?

The current competitive landscape for MEV-resistant and scalable Layer 2 solutions includes:

  1. MEV-Focused Projects:
    • Flashbots/MEV-Boost: Mitigate MEV via private mempools but rely on centralized relayers, creating trust risks.
    • Anoma/Espresso: Use cryptographic fair ordering but suffer from high computational overhead and slow finality.
  2. Scalability-Focused L2s:
    • Optimism/Arbitrum: Optimistic rollups with 1-2s block times but no MEV resistance.
    • zkSync/StarkNet: zk-Rollups with fast finality but limited MEV solutions and high ZK-proof costs.
    • Solana: HIGH TPS but vulnerable to MEV and centralized validator risks.

How Xythum Compares:

  • MEV Resistance + Scalability: Unlike competitors that address MEV or speed, Xythum combines silent threshold encryption (no trusted relays) with 20,000+ TPS via BNB Chain’s blobType TX and Nitro’s 0.2s blocks—outperforming Optimism/Arbitrum in speed and Flashbots in decentralization.
  • Cost Efficiency: Silent setup encryption eliminates expensive DKG ceremonies (unlike Anoma), while blobType TX reduces data costs by 90% vs. zk-Rollups.
  • BNB Chain Native Integration: Unlike Solana or Ethereum L2s, Xythum leverages BNB Chain’s low fees and high throughput natively, offering seamless bridges and EVM compatibility.
  • Developer Edge: Prebuilt ZK circuits and encrypted transaction SDKs simplify MEV-resistant dApp deployment—tools absent in most L2s.

Weaknesses Addressed:

  • No Trusted Relays: Unlike Flashbots, Xythum’s SMPC nodes/TEE SEQUENCING enforce fairness without centralized intermediaries.
  • Scalable Security: Silent decryption ensures robustness against Sybil attacks, a flaw in Solana’s delegated PoS.

Xythum uniquely positions BNB Chain as the only ecosystem offering Solana-like speed with Ethereum-level security and MEV-proof execution, attracting developers and users seeking fairness, scalability, and cost efficiency.

Xythum L2 Benchmarking and Estimations