Cyclone Protocol

Cyclone Protocol is a privacy-focused transaction protocol that leverages zero-knowledge succinct non-interactive arguments of knowledge (zkSNARKs) to provide strong transactional privacy on blockchain networks. It breaks the on-chain link between deposit and withdrawal addresses, ensuring that transaction histories and balances remain confidential. This is particularly important in public blockchains where all transaction data is transparent and traceable. Cyclone is designed as a cross-chain, non-custodial solution with decentralized governance, aiming to serve as a universal privacy layer for decentralized finance (DeFi) applications.

The protocol operates by using smart contracts that accept deposits of coins or tokens, which can later be withdrawn by different addresses without any on-chain link to the original deposit. Cyclone’s zkSNARK implementation is based on the audited Tornado Cash protocol but extends its capabilities by supporting multiple blockchains and integrating decentralized governance through CYC token holders. Initially launched on the IoTeX blockchain, Cyclone has quickly attracted over $3 million in total value locked (TVL) across its anonymity pools, incentivized by anonymity and liquidity mining programs.

Cyclone’s decentralized governance model allows CYC token holders to vote on key protocol decisions such as which blockchains to support next, launching new anonymity pools, and adjusting mining parameters. The protocol plans to expand support to Ethereum, Binance Smart Chain, Polkadot, and other EVM-compatible and non-EVM blockchains. Beyond simple token mixing, Cyclone envisions itself as a universal privacy-preserving layer that aggregates yield-generating DeFi components, enabling users to maintain privacy while participating in DeFi yield farming and liquidity mining. Developers can get started by integrating Cyclone’s smart contracts and participating in the governance DAO, with comprehensive documentation and open-source code available on GitHub.