LumenShade: privacy pools

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This project proposes building a privacy pools protocol on the Stellar network, enabling privacy-preserving asset transfers while maintaining the potential for regulatory compliance. Inspired by initiatives like 0xbow’s Privacy Pools, the goal is to offer users the ability to break transaction linkability using zero-knowledge proofs. Integrating privacy pools into Stellar will enhance the network’s appeal to privacy-conscious users and institutions, unlock shielded payments, and lay the foundation for compliant, private DeFi on Stellar. The project will proceed in two phases: 1. Phase 1: Deliver a fully functional privacy pool with private deposits and withdrawals. 2. Phase 2: Introduce optional compliance mechanisms such as user-defined association sets and selective disclosure, aligning with regulatory expectations.