Key takeaways
- Paradex has launched Privacy Perps, improving account and location privacy through encryption and authenticated RPCs.
- Decryption keys are managed by the Paradex Privacy Council, allowing secure state recovery if necessary.
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Paradex has launched privacy-preserving perpetuals on mainnet, marking a major shift toward CEX-like privacy in a self-custody model.
The new system ensures that only account holders and Paradex can view orders, positions and balances, with privacy enforced at all layers, from Paradex Cloud to its L2 chain and the Ethereum mainnet.
On L2, access to private trading data is now secured via authenticated RPC calls, meaning observers can no longer reconstruct account states via indexers. On L1, state updates published to Ethereum are encrypted and verified using ZK proofs, thereby closing the data availability path to external observers.
A Privacy Council, currently comprised of Paradex, the Paradex Foundation and Karnot, is responsible for decrypting data only if Paradex becomes unusable, thereby preserving both privacy and an escape route for users.
Paradex claims that it is a new standard for self-custodial trading platforms, combining user privacy with decentralized recovery mechanisms.
