Paradex rolls out Privacy Perps with enhanced end-to-end data privacy
Paradex launched Privacy Perps, introducing end-to-end encryption for trades and account data on its self-custodial platform.Summary
Paradex has launched Privacy Perps, a new architecture for perpetuals on mainnet that enforces CEX-style privacy within a self-custodial framework. This system encrypts trades, orders, positions, and balances, ensuring that only account holders and Paradex can view this sensitive information across all layers, including Paradex Cloud, the L2 chain, and Ethereum mainnet. On L2, data access is restricted via authenticated RPC calls, preventing indexers from reconstructing account states. On L1, state updates are encrypted and verified using ZK proofs, eliminating data availability for external observers. A Privacy Council, composed of Paradex, Paradex Foundation, and Karnot, holds the decryption keys, which can only be used for secure state recovery if Paradex becomes inoperable, thus balancing user privacy with a decentralized recovery mechanism.
(Source：Crypto Briefing)