Decentralized Protocol Hinkal Launches ‘Eigenlayer for Privacy’

Hinkal Protocol, a multi-chain privacy layer for confidential on-chain transactions, has launched the Shared Privacy Protocol which allows cross-chain privacy through anonymous staking.

In an announcement made at EthCC 7, Hinkal said the privacy protocol offers several benefits. These include allowing stakers to deploy native and staked assets to the protocol, generating additional yield while maintaining the flexibility to trade yield tokens on other dApps.

The protocol claims traders can benefit from the expanded Shielded pool, further obfuscating their trading strategies and maximizing deployed capital across multiple chains.

Developers of decentralized exchanges and dApps will be able to now seamlessly integrate Hinkal’s Shared Privacy Protocol directly into their platforms, granting new privacy capabilities to their users.

“Ensuring complete privacy on-chain is a critical step in enabling the full adoption of crypto as an asset class across the institutional financial sector,” said Georgi Koreli, co-founder and CEO of Hinkal.

“The Hinkal Protocol has already seen rapid adoption across our institutional network, and the launch of the Shared Privacy Protocol is a key milestone in unleashing the power of community and breaking privacy barriers in crypto,” adds Koreli.

Institutional Investors Want Same Privacy Offered in DeFi

Hinkal Protocol, claims that as more institutional investors increasingly enter the crypto market, they demand the same privacy in decentralized finance (DeFi) trading that they have enjoyed in traditional equities markets.

The team explain that achieving complete privacy in DeFi trading, however, requires a substantial pool of “Shielded TVL” on each blockchain to adequately mask transactions.

This task is daunting, given the industry’s extensive landscape of over 200 Layer-1 and Layer-2 blockchains. Liquidity fragmentation has been a significant hurdle to institutional adoption, as providing this liquidity lacked proper incentives and, until now, privacy in DeFi was not scalable, said the team behind Hinkal.

“A compliant solution enabling discrete liquidations without disclosing transaction data is necessary for us to efficiently operate in DeFi markets, and Hinkal’s Shared Privacy Protocol is the solution we have been searching for,” said Evgeny Gokhberg, founder of Re7 Capital and an investor in Hinkal.