ZKBOB vs Tornado Cash for Compliant Privacy Pools

Compliance-first architecture: Uses whitelisted deposit addresses and KYC/AML integration via providers like Fractal ID. This matters for protocols requiring regulatory alignment, such as institutional DeFi or compliant payroll solutions.

Customizable pool logic: Supports configurable limits, token types, and withdrawal rules per pool. This matters for DAO treasuries or project-specific privacy needs, enabling use cases like gated salary streams or capped donation anonymity.

Permissionless, non-custodial mixing: No identity checks or central operator. This matters for users seeking pure, censorship-resistant privacy, as demonstrated by its historical dominance in Ethereum and Arbitrum TVL for generic asset obfuscation.

Battle-tested, single-purpose design: Focuses solely on fixed-amount mixing (e.g., 1 ETH, 1000 DAI). This matters for users who prioritize a simple, audited, and widely integrated tool with proven cryptographic guarantees, despite regulatory scrutiny.

Built-in KYC/AML rails: Uses identity verification via Polygon ID to create compliant privacy pools. This is critical for protocols requiring regulatory alignment or serving institutional users.

Selective disclosure: Users can prove eligibility (e.g., citizenship, accredited investor status) without revealing full identity, enabling use cases like private payroll or compliant airdrops.

Native multi-chain deployment: Live on Polygon, Optimism, and zkSync Era, reducing fragmentation for cross-chain dApps.

Stablecoin-centric pools: Supports BOB, a compliant stablecoin, and USDC, making it ideal for DeFi applications needing price-stable private transactions (e.g., OTC trades, private savings).

Maximized privacy set: As the original Ethereum privacy mixer, it boasts the largest historical anonymity set (~$7.8B total value bridged), which is mathematically critical for strong anonymity.

Proven cryptographic design: Uses Semaphore-based zk-SNARKs, audited and stress-tested over years, offering high confidence in its core privacy guarantees for non-compliant use cases.

OFAC-sanctioned smart contracts: Core contracts are on the U.S. SDN list, creating legal risk for integrators and potential front-end blocking by RPC providers like Infura/Alchemy.

No compliance tooling: Purely anonymous by design, making it unsuitable for any application requiring user verification, proof-of-humanity, or audit trails.

Native multi-chain deployment: Live on Polygon, Optimism, and Gnosis Chain with a shared privacy pool state. Primarily supports stablecoins (USDC, DAI, BOB). This matters for users seeking predictable privacy for payments and payroll across L2s, with gas fees as low as $0.01-0.05 per transaction.

Optimized for native ETH: The original and most audited privacy pool for Ethereum mainnet, with over $7.6B in historical deposit volume. Its smart contracts have undergone extensive formal verification. This matters for high-net-worth individuals and OTC desks transacting in ETH, where battle-tested security is paramount.

OFAC-sanctioned smart contracts: The core Ethereum pool addresses are on the U.S. OFAC SDN list, causing most front-ends (like dApp UI) and RPC providers (Infura, Alchemy) to block access. This matters for any project requiring reliable, unblocked access for users or integration with standard Web3 infrastructure.

Reliance on KYC providers: Privacy is conditional on passing identity checks through centralized vendors. This introduces a trust assumption and creates a metadata point. This matters for privacy purists and users in jurisdictions where identity verification is not feasible or desirable.