Important points
- Paradex launches Privacy Perps to enhance account and position privacy through encryption and authenticated RPC.
- Decryption keys are managed by the Paradex Privacy Council and can be restored to safety if necessary.
Paradex launches permanent privacy protection on mainnet, marking a major shift towards CEX-style privacy in a self-managed model.
The new system will allow only the account owner and Paradex to view orders, positions, and balances, enforcing privacy across all layers from Paradex Cloud to its L2 chain and Ethereum mainnet.
With L2, access to private transaction data is now gated through authenticated RPC calls. This means that observers will no longer be able to reconstruct the account state through the indexer. In L1, state updates posted to Ethereum are encrypted and verified using ZK proofs, breaking the data availability path to external observers.
The Privacy Council, which currently consists of Paradex, Paradex Foundation, and Karnot, is responsible for decrypting data only if Paradex becomes inoperable, protecting both privacy and user escape routes.
Paradex says this will be a new standard for self-custodial trading platforms, combining user privacy with decentralized recovery mechanisms.
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