Larel

Larel is a confidential trading layer on Flare. A user shields a balance — it becomes a Poseidon2 note commitment in a Merkle tree, with amount and owner sealed inside the hash. From there they can transfer value privately, withdraw back to a public address, or place an order on a dark pool where the matching engine itself runs inside a Trusted Execution Environment.

Orders are ECIES-encrypted to the TEE's public key before they ever touch the chain. Inside the enclave they are decrypted, matched at the midpoint, and the result is signed. Only that signed result reaches the chain: which notes were spent and what was created — never the side, the size, or the limit price. The operator running the service cannot see the order book either.

Every state transition out of the shielded layer is gated by a zero-knowledge UltraHonk proof generated client-side (compiled from Noir circuits) and verified on-chain.