FAQ

What is FHE?

FHE stands for Fully Homomorphic Encryption. FHE is a type of encryption that allows for computations to be performed directly on encrypted data without decrypting it first. This ensures that data remains private and secure throughout the entire process.

What is Felend?

Felend is a lending protocol building on Fhenix which take advantages of FHE to keep user position Fully Encrypted.

How Felend can be fully encrypted?

Using FHE, Felend keep all user data encypted (supply/borrow/repay/withdraw amount, liquidation price) while still allow all functions of a lending protocol works correctly.

Why FHE over ZKP or Tee?

ZKP stands for Zero-Knowledge Proof and TEE for Trusted Execution Environment, while ZKP also provides privacy but not in processing level and SC level, TEE on the other hand also provides privacy within the environment, but it means we trust completely on the TEE provider. From our PoV, the best setup for decentralized lending should be FHE with MPCs node running by different TEE.

What are components encrypted and what part got reveal during the process?

All the user input will be encrypted including deposit/borrrow/repay/withdraw amount. Those value will be stored encrypted on the SC storage. The liquidation price of an user position will also be kept confidential. However, we still publish the details of the pool configuration (ltv, liquidation threshold, apr, apy, tvl), and the position liquidatable will also be public, so liquidator can request and help resolve before it becomes bad debt.

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