Azoth DAO: Confidential DAO with Inco TEE

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

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What We Built

A confidential governance system where:

• All balances are encrypted (cUSDC, vault shares, cGOV tokens)
• Votes remain private until voting ends
• Proposal amounts are hidden (prevents MEV/front-running)
• Session keys eliminate signature fatigue (93% reduction in MetaMask popups)

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Deployed Contracts (Base Sepolia)

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

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Core Features

Encrypted Storage

mapping(address => euint256) private _balances;  // Hidden token balances
euint256 public forVotes;                        // Hidden vote tallies
euint256 public requestedAmount;                 // Hidden proposal amounts

Encrypted Operations in TEE

euint256 newBalance = oldBalance.add(amount);    // Addition on encrypted values
ebool hasVoted = votes.gt(threshold);            // Comparison without decryption

Session Key Pattern

// Sign ONCE
const voucher = await grantSessionKeyVoucher({ expiresAt: oneHourLater });
// Decrypt UNLIMITED times (no more signatures)
const [balance, votes, shares] = await decryptWithVoucher({ handles, voucher });

Dual-Token Architecture

• cUSDC (economic) - Purchase with ETH, deposit to vault
• cGOV (governance) - Mint with ETH, vote on proposals

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Documentation

Smart Contracts

• Contract Overview
• Inco Smart Contract Guide

Frontend

• Frontend Overview
• Inco SDK Guide

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Architecture

Smart Contracts

Contract	Purpose	Key Features
CUSDCMarketplace	Buy cUSDC with ETH	euint256 balances, encrypted .add()
ConfidentialVault	ERC-4626 vault	Encrypted shares, .mul(), .div()
ConfidentialGovernanceToken	Soulbound governance	Non-transferable, encrypted minting
AzothDAO	Main governance	Encrypted voting, proposal amounts

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Getting Started

Prerequisites

• Node.js v18+
• pnpm or npm
• MetaMask wallet
• Base Sepolia testnet ETH

Installation

git clone https://github.com/yourusername/azoth-protocol.git
cd azoth-protocol
pnpm install

Environment Setup

Create .env.local in apps/nextjs-template/:

NEXT_PUBLIC_PRIVY_APP_ID=your_privy_app_id
NEXT_PUBLIC_CHAIN_ID=84532
NEXT_PUBLIC_RPC_URL=https://sepolia.base.org

Run Frontend

cd apps/nextjs-template
pnpm dev

Deploy Contracts

cd apps/inco-lite-template
npx hardhat compile
npx hardhat run scripts/deploy.ts --network baseSepolia

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User Flow

1. Purchase cUSDC (0.01 ETH = 20 cUSDC)
2. Deposit to Vault (receive encrypted shares)
3. Join DAO (requires vault shares)
4. Mint cGOV (0.01 ETH = 10 cGOV)
5. Create Proposal (encrypted amount)
6. Cast Vote (encrypted weight)
7. Enable Session Key (sign once)
8. Finalize Proposal (decrypt with session key)
9. Queue & Execute (timelock, transfer funds)

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Tech Stack

• Blockchain: Base Sepolia
• Confidential Computing: Inco Lightning Protocol
• Smart Contracts: Solidity 0.8.30, Hardhat, OpenZeppelin
• Frontend: Next.js 16.1, TypeScript 5.9, Privy, Wagmi, Viem

Built for Defy' 26 | Powered by Inco TEE