Decentralized Protocol Hinkal Launches Privacy-Focused ETH Derivatives
Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk and Bitcoin Magazine.
Hinkal Protocol, a multi-chain privacy layer for confidential on-chain transactions, said it is launching “hETH” 一 an ETH liquid privacy derivative.
In an announcement, Hinkal said the product is designed to address privacy concerns in decentralized finance (DeFi) while also giving yield opportunities to participants.
The protocol said it is introducing a new concept that allows Ethereum stakers to stay liquid and earn yield while contributing to on-chain privacy.
The team explains that the hETH is a liquid privacy derivative, and is an Ethereum-based asset that allows users to stake ETH in Hinkal’s “Shielded Pool” while maintaining liquidity.
The Shielded Pool acts as a layer of anonymity for users who want to carry out transactions without revealing their identity. Traditionally, anonymity and privacy in DeFi have been difficult to achieve without sacrificing capital efficiency or yield opportunities, but Hinkal said it aims to change this.
Hinkal Protocol will allow users to stake their ETH into a Shielded Pool in exchange for hETH, a privacy derivative that can be used for various decentralized applications, including trading, lending, or serving as collateral across DeFi platforms.
This provides users the ability to maintain their privacy while benefiting from the liquidity and versatility of the derivative.
Hinkal’s latest launch, introduced by CTO and co-founder Nika Koreli during the presentation of Hinkal V.2 at the Blockchain and Social Systems (BASS) conference at Stanford, is the concept of “anonymity staking”.
Through anonymity staking, users
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