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PRIVAMARGIN

Privacy-focused margin system on Canton Network for leveraged positions and LTV tracking & audits.

Privacy DeFi & Tokenization Risk & Compliance

What it is

Project Description
PrivaMargin is a privacy-preserving margin and risk management infrastructure built on the Canton Network, designed specifically to support leveraged commercial real estate (CRE) and tokenized asset financing. The system integrates the Chainlink Runtime Environment (CRE) to automate risk calculations and ensure verifiable transparency without sacrificing confidentiality.
What It Is
PrivaMargin enables institutions to open and manage leveraged positions backed by tokenized commercial real estate assets. It operates on a permissioned ledger (Canton Network) while using decentralized oracle infrastructure and off-chain execution to continuously monitor collateral health.
The core automation layer is powered by the Chainlink Runtime Environment (CRE) — which executes risk logic, fetches market data, computes LTV ratios, and generates verifiable proofs.
How It Works

  1. Position Creation

  2. Tokenized CRE assets are pledged as collateral on the Canton ledger to create leveraged positions.

  3. Data Retrieval via CRE

  4. The Chainlink Runtime Environment:

    • Reads active positions from the Canton ledger
    • Fetches asset price data from decentralized oracle feeds (e.g., via Chainlink or supported data sources)
    • Pulls external market inputs required for valuation
  5. Automated Risk Computation

  6. CRE executes the LTV calculation and risk logic in a deterministic environment.

  7. Proof Generation & Verification

  8. Every calculation generates a verifiable proof that:

    • Confirms data inputs
    • Confirms execution logic
    • Records the computed risk metrics
  9. On-Ledger Update

  10. The computed LTV values and proofs are written back to the Canton Network via API, ensuring transparent auditability.

  11. Automating Risk Monitoring
    CRE continuously recalculates LTV using real-time oracle data, removing manual reconciliation.

  12. Providing Verifiable Execution
    Because computations run inside the Chainlink Runtime Environment, outputs are cryptographically provable and auditable.

  13. Preserving Privacy
    Sensitive position data remains on the permissioned Canton ledger while only verified risk outputs are shared as needed.

How it Works

It is a continuity of an existing project built for canton catalyst, canton accelerator program. Built with Chainlink CRE SDK using TypeScript. The workflow runs on a cron trigger (every 30 seconds ), fetches live cryptocurrency prices from CoinGecko API via HTTPClient, computes Loan-to-Value ratios for margin trading positions, and identifies positions that breach liquidation thresholds. The architecture integrates the Canton Network ledger (for position data) with external price oracles, producing verifiable, consensus-backed LTV computations that can trigger on-chain liquidation events.

Links

Created by

  • KWANG
  • DHONAM