Deposit

The deposit operation is the entry point into the Privacy Pools protocol. It allows users to publicly deposit assets (ETH or ERC20 tokens) into a pool, creating a private commitment that can later be used for private withdrawals or public ragequit operations.

Protocol Flow

Commitment Structure

The deposit process creates a commitment with the following structure:

Parameters

Parameter	Description
value	The deposit amount after fees
label	keccak256(scope, nonce) where scope is pool-specific and nonce is incremental
nullifier	Random value used to create unique commitments
secret	Random value that helps secure the commitment
precommitment	Hash(nullifier, secret)

Deposit Steps

1. Input Preparation

• User generates random nullifier and secret values
• User computes precommitment = hash(nullifier, secret)

1. Deposit Transaction

• User calls Entrypoint's deposit function with asset, amount, and precommitment
• For ETH: deposit(precommitment) with ETH value
• For ERC20: deposit(token, amount, precommitment) after approval

1. Fee Processing

• Entrypoint calculates and retains vetting fee (configurable per pool)
• Remaining amount is forwarded to pool

1. Commitment Generation

• Pool generates unique label using scope and incremental nonce
• Computes commitment hash using value, label, and precommitment
• Inserts commitment into state Merkle tree

Fee Structure

• Vetting fee: Configurable percentage (in basis points) taken by Entrypoint
• Example: 100 basis points = 1% fee