Paper 2026/1330

Real-world Qualification Proof: A Protocol for Supporting Real-world Assets in DeFi

Abstract

Integrating Real-World Assets (RWA) into Decentralized Finance (DeFi) enables borrowers to leverage off-chain assets for on-chain transactions. However, this integration faces a critical security challenge: ensuring that private asset data, utilized within cryptographic proofs, is authenticated by and cryptographically bound to a trusted issuer. Existing solutions, such as decentralized identifiers (DIDs) and oracles, fail to simultaneously satisfy the requisite security standards and performance constraints. To address this, we propose Real-world Qualification Proof (RQP), a cryptographic protocol designed for the privacy-preserving verification of off-chain asset qualifications. RQP introduces a new primitive, Witness-Hiding Authentication (WHA), which operates in conjunction with zk-SNARKs. WHA enables asset issuers to authenticate RWA data, allowing the on-chain smart contract to efficiently verify the binding relationship between the issuer's authentication and the borrower's zero-knowledge proof. The proposed WHA effectively anchors the data privacy guarantee of RQP within the zero-knowledge property of the proof system while ensuring source authenticity. Furthermore, to ensure scalability and minimize on-chain gas costs, we adopt zk-rollup methodologies and employ the Inner Product Argument (specifically MIPP) to aggregate multiple RQP proofs. This yields a protocol that is not only secure and private but also computationally efficient for high-throughput DeFi applications. Experiments show that logarithmic verification efficiency optimization can be achieved in the multi-borrower proof scenario.