1. Overview

StableNet Wallet is a stablecoin wallet built on StableNet Testnet. With banking-app-like usability — including easy, fast transfers and recurring payments — it is designed for anyone to use with confidence.

It is a stablecoin wallet with private transfer support, built on the Ethereum stealth address standard (ERC-5564).
Transactions are hidden from unauthorized third parties, while remaining verifiable by regulated businesses (exchanges, VASPs).

The wallet is powered by three components:

  • Private Transfer (Stealth Address, ERC-5564) — Issues a fresh one-time address for every incoming payment
  • Secret Transfer Server (STS) — On-chain scanner, relay, and compliance gateway
  • Private Bank Contract (PBC) — Manages one-time-address balances in a single on-chain location

Core Principle — Privacy ≠ Regulatory Evasion. Transactions are hidden only from unauthorized third parties. Businesses can still verify, record, and audit them (Compliance by Design).

2. Goals

Public blockchains expose every transaction — counterparties, amounts, and all. Yet hiding this data undermines regulatory compliance. StableNet satisfies three pillars simultaneously, delivering regulatory compliance on top of blockchain technology.

Pillar
Target
What It Delivers
Privacy
Unauthorized third parties
Explorers and on-chain analysis cannot link counterparties or amounts
Compliance
Businesses (exchanges, VASPs)
Identification, recording, and auditing aligned with Travel Rule, sanctions, and STR
Usability
General users
Bank-app–like ease of use, no blockchain literacy required

3. Architecture

Three components divide responsibilities across client, off-chain, and on-chain layers.

Balance
lookup
Wallet App / Core SDK
Spending·Viewing PK
Register · Request
Secret Transfer Server
(STS)
Key mapping · Scan · Relay
Compliance gateway
Scan proxy · Batch
Stealth Address
one-time
Aggregate & post
PrivateBank (PBC)
Per-user balance
ClientOff-chainOn-chain
Component
Layer
Responsibility
Wallet (Wallet SDK / App)
Client
Coordinates with the STS server to create the private bank, deposit, transfer, and withdraw. Uses the wallet's Private Key as the Spending Key (kept locally in the app).
Secret Transfer Server (STS)
Off-chain
  • Generates, maps, and stores Viewing Keys upon wallet request
  • Computes stealth key generation and value-splitting transfer algorithms
  • Provides data upon compliance request
  • Non-custodial structure: cannot control funds centrally without wallet signatures
PrivateBank (PBC)
On-chain
Maps assets to stealth addresses as keys and holds them. Manages withdrawals with Spending Key signature verification.

4. How Private Transfers Work

Based on ERC-5564 Stealth Addresses (ECDH)

  • Every transfer creates a new one-time address; only a hint value is recorded on-chain
  • Recipients identify their own transactions using a Viewing Key — no intermediary required

Standard limitations

  • Wallets must continuously scan the chain
  • Addresses are hidden, but amounts remain public
  • The ERC-5564 standard exposes the sender's wallet address on-chain
  • Sender concealment only works between stealth addresses (a single deposit from an EOA reveals the recipient — an incomplete structure)
  • Not suitable for AML / Travel Rule compliance

StableNet's Enhancements:

Enhancement
Method
Effect
Amount hiding
Split into multiple one-time addresses; used addresses are discarded (UTXO-style)
Prevents amount tracing
Randomization
Vary the number of addresses on every transfer
Conceals transaction patterns
Scan burden removal
STS performs on-chain scanning on behalf of the wallet
Maps assets by stealth address; manages withdrawals via Spending Key signature verification

STS handles the actual processing, batching multiple requests into a single transaction. Amounts are split and aggregated into one-time addresses and reflected in the PBC. Completion is delivered via notifications.

① ERC-5564 Stealth Address Fundamentals

Recipient Meta Address
Spending · Viewing public keys
Meta address published
Sender Key Derivation
ECDH · Ephemeral key
Address generation
One-time Stealth Address
Payment sent · on-chain hint left
Scan detection
Recipient Detects & Uses
Viewing Key → Spending Key

Limitation: Stealth addresses hide "who" but expose "how much (amount)".
StableNet enhances this through three techniques:

② StableNet's Enhancements

Amount hiding
Split into multiple one-time addresses, then discard (UTXO)
Randomization
Vary the number of addresses per transfer → pattern concealment
Scan burden removal
STS handles on-chain scanning on the wallet's behalf

5. Four Key User Actions

Action
Description
Register
Create a private bank. Register the meta key and Viewing Key with STS.
Deposit
Move funds from a standard EOA wallet → private bank (IN).
Transfer
Confidential transfer through the private bank. Minimum transfer amount: 50 WKRC.
Withdraw
Move from private bank → standard EOA balance (OUT). Used for regular transfers.
User Wallet
(User A, B, C ...)
Secret Transfer Server
(STS)
Private Bank
PBC
Private transfer request
Batch multiple user requests into one
Convert to one-time addresses
& value splitting (UTXO)
Select stealth addresses & request signature
Stealth address transfer signature
Aggregate into virtual balances
(single transaction)
Balance updated + notification

STS batches multi-user requests into one transaction; scattered stealth address balances land in the PBC.

6. Visibility & Compliance

Each party sees a different scope — this difference is the core of the design.

Party
Identification
Amount
Basis
External Observer
X
X
One-time addresses · UTXO splitting · randomization
Secret Transfer Server (STS)
Only "who"
X (not controlled)
Compliance gateway
Businesses (VASPs)
O Verify · Record · Audit
Within Viewing Key scope
Viewing Key authority + STS
User (Self)
O
O
Holds Spending Key / Viewing Key

Regulatory Compliance (Based on the Act on Reporting and Use of Specific Financial Transaction Information, Republic of Korea)

  • KYC/AML: Foundation for customer identification and anti-money laundering obligations
  • Travel Rule: Exchange of sender/recipient information between VASPs
  • STR (Suspicious Transaction Reporting): Report identifiable, recorded, and auditable transaction history to the FIU
  • FDS (Fraud Detection System): Real-time detection and blocking of abnormal transaction patterns

Glossary

Term
Description
WKRC
StableNet's native stablecoin. The only balance unit visible to users. Also used for gas payments.
Stealth Address (ERC-5564)
A one-time recipient address generated for every transfer. Separates the Spending Key from the Viewing Key.
Spending Key
Key with authority to move assets. Always kept on the client.
Viewing Key
Key with authority to view and search. The core of business audit and identification.
PBC / STS
PBC = On-chain fund consolidation / virtual balance contract ("Private Bank"). STS = Scan · Relay · Compliance gateway server (does not control amounts).