> For the complete documentation index, see [llms.txt](https://privax-1.gitbook.io/privax-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://privax-1.gitbook.io/privax-protocol/high-level-architecture/use-cases-and-applicability.md).

# Use Cases and Applicability

What builders can develop on top of Privax Protocol

## 1. Undercollateralized Lending dApp 🏦

Borrow without locking full collateral.\
Loans are issued based on verifiable risk assessments using **zero-knowledge circuits**.\
Each user is evaluated through a private **scoring system** — if risk checks pass, a loan is granted.\
A separate zk-circuit monitors the entire portfolio to ensure the protocol stays solvent and balanced.

> No trusted parties, no data leaks — only logic and math.

**How It Works**

* Risk Instead of Collateral  `The user passes a set of checks — if they’re not risky, they get a loan`.
* Checks as ZK Circuits `Each rule (KYC, repayment history, credit score, etc.) is a ZK circuit that returns true or false.`\
  `If all are true — the loan is issued`.
* Portfolio Health Circuit `One more circuit monitors the entire protocol.`\
  `It makes sure that total risk and exposure stay balanced.`\
  `If this circuit returns false, no new loans are issued.`

***

## 2. Private P2P Transfers 🔐

Send and receive crypto without exposing your wallet or balance.

#### Ideal for:

* **OTC deals** – keep your large trades invisible to market watchers.
* **Salary & payments** – show only what’s needed, not your full wallet history.
* **Investments** – store tokens in stealth addresses, protect your strategy.
* **DeFi** – swap tokens, provide liquidity, farm, etc. — all privately.

All powered by zero-knowledge proofs, running in a sleek, non-custodial wallet.