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Documentation Index

Fetch the complete documentation index at: https://docs.inkwell.finance/llms.txt

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CONFIDENTIAL & PROPRIETARY © 2026 Inkwell Finance, Inc. All Rights Reserved. This document is for informational purposes only and does not constitute legal, tax, or investment advice, nor an offer to sell or a solicitation to buy any security or other financial instrument. Any examples, structures, or flows described here are design intent only and may change.
Pre-alpha vs production. Pages that describe “the operator holds the session-to-ephemeral-key mapping” describe today’s single-operator implementation. Production Dagon will distribute this custody across an Ika 2PC-MPC dWallet network — no single “operator” entity will hold the mapping, and no unilateral disclosure (lawful or otherwise) will be possible without the network agreeing. The two-party composition described here is strengthened, not weakened, by the migration. See Design Philosophy for the full decentralization roadmap.

What Dagon is

An institutional dark pool that structurally cannot see its own orders.
Dagon is a confidential matching venue on Solana. Size, side, curves, and crossings stay encrypted through matching. The operator is cryptographically blind to order flow. The clearing price emerges from ciphertext. Settlement is atomic. Under compelled process, a specific user’s activity can be resolved — but only through a two-party composition: the venue operator (holding session ↔ ephemeral-key) and a separate credential issuer (holding credential ↔ PII). Neither party alone can de-anonymize; neither can do it in real time; neither can see activity they haven’t been lawfully compelled to surface. Flow of funds is legible by design. Within a session, money in equals money out. There is no pooled anonymity set, no severed deposit↔withdrawal link. Session-level flow transparency is the reason the MiCA / Reg ATS / MiFID II posture is available at all — and the reason Dagon is not a mixer.

Life of an order

Follow one order from submit to (hypothetical) subpoena. Six beats.

A \$5M trade, three ways

Lit CEX vs. OTC desk vs. Dagon. What each surrenders under court order.

Why this is not a mixer

Mixers sever deposit↔withdrawal. Dagon preserves it. The compliance surface is in the two-party composition, not in pooled anonymity.

Two-party composition

How identity is split across the operator and a credential issuer so that neither alone can de-anonymize a user.

Who it’s for

Institutional flow. Market makers with curve-based inventory, OTC desks, prop shops, and crypto-native funds whose edge depends on not broadcasting intent before a fill clears. Schedule floor is $0.01, ceiling ~$42.9M per schedule. Sophisticated individuals with seven-figure+ portfolios are welcome; mass retail should use an AMM. If you’re already slicing TWAP over twenty minutes to avoid impact, a Dagon batch window is free. Dagon clears the part of your flow where impact dominates latency. Your hedge leg runs wherever you run it.

Who holds what

OperatorCredential issuerUser
User’s real-world identityNeverYes (KYC at issuance)Own it
Session ↔ ephemeral-key mappingYes (minimum-necessary)Never
Order contents during matchingCiphertext only; cannot decryptNever (not told)Plaintext client-side
FundsNever (non-custodial)NeverSolana self-custody
Decrypt authority on fillsNever (in production: threshold committee)NeverYes, client-side
Depositing and withdrawing are entirely user-controlled. The operator cannot move user funds; the issuer cannot move user funds; matching never decrypts.

What Dagon is not

  • Not a mixer. No pooled anonymity set. No severed deposit↔withdrawal link. No flow obfuscation as a service.
  • Not an AMM. No bonding curve, no LP tokens, no constant-product invariant. Market makers publish encrypted six-parameter schedules.
  • Not a CLOB. Inside a batch, no order is “first.” One clearing price serves every fill on both sides.
  • Not HFT infrastructure. Batch cadence is seconds, not microseconds. Latency-based edges are structurally absent.
  • Not a cross-chain story. Solana-first. Cross-chain composition is Ika’s surface, not Dagon’s.
  • Not TradFi Canton. Canton wins today at institutional TradFi scale. Dagon’s wedge is crypto-native institutions whose compliance model is “respond to lawful process” rather than “prevent all disclosure.”
Read the full boundary at What Dagon is not.

Pre-alpha status

Dagon is pre-alpha. The current devnet build runs a mock Encrypt executor (plaintext ingress, single-operator decryption). The integration contract matches the production API exactly — every primitive is a swap-in — but the cryptographic invariants described in these docs will only be enforced on the wire once:
  • The threshold-FHE committee ships (5-of-7 at launch, growth path to 7-of-11).
  • The threshold-PRE federation ships for reveal liveness.
  • The real BBS+ / Coconut credential gate replaces the current stub.
We do not market devnet as delivering FHE privacy today.