Since the base layer supports a stateless VM, there is no contract address that allows deposit/withdrawal while maintaining a global state. Hence, the "pool" in Twilight pool is not a contract address with custody of tokens but a list of independently locked transactions that are treated as a pool. The transactions are locked to a relayer, as a promise to participate in the pool, with a timelock in case of a dispute. The
poolshare is calculated over encrypted state, made available in the
txlog , by the relayer and is auditable in zero knowledge.