imoleayo0/confidential-lending

EVA is an experimental lending application built on Zama's fhEVM, a blockchain technology that lets smart contracts compute directly on encrypted data. It is a demo project built for a developer program, aimed at a specific problem in existing crypto lending platforms: on services like Aave or Compound, everyone's collateral amount, debt, and health factor are fully visible on the public blockchain. The README states that automated bots scan this public data constantly and can act against a user's position the moment it becomes risky, and cites billions of dollars extracted this way. EVA's approach is to encrypt the collateral amount, debt amount, and health factor for each user using fully homomorphic encryption, so the smart contract can still calculate whether a position should be liquidated without ever revealing the underlying numbers to anyone watching the blockchain. Only a single true or false answer, whether liquidation should happen, is made publicly readable. The project explains a technical workaround it uses: instead of dividing two encrypted numbers to compute a health factor, which is expensive under this encryption scheme, it rearranges the comparison so no division is needed. The project includes a Solidity smart contract for the encrypted collateral vault, and a Next.js frontend that handles the browser side encryption before anything is sent to the blockchain, plus wallet connection tooling. It is currently deployed only on the Sepolia test network, not a live network with real funds. The README is explicit about its limitations: the price used to value collateral is set manually by the contract owner rather than coming from a real price feed, and there is a plaintext emergency withdrawal function included only for demo purposes. Both are clearly labeled as things a production version would need to replace. The project is released under the MIT license.