Decentralized Protocol Hinkal Launches Privacy-Focused ETH Derivatives
Date: 2024-09-17 Author: Henry Casey Categories: BLOCKCHAIN
Hinkal, a multi-chain privacy layer for anonymous transactions on the blockchain, has announced the launch of “hETH,” a privacy-focused liquid ETH derivative.
Hinkal said in a statement that the product is designed to solve privacy issues in decentralized finance while providing participants with yield opportunities.
The protocol introduces a new concept that allows Ethereum stakers to remain liquid and earn yield while they contribute to the privacy of the blockchain.
What is the hETH concept?
The team explains that hETH is an Ethereum-based liquid privacy derivative that allows users to stake ETH in Hinkal’s “Secure Pool” while maintaining liquidity.
The Shielded Pool acts as an anonymity layer for users who want to transact without revealing their identity. Anonymity and privacy have traditionally been difficult to achieve in DeFi without losing capital efficiency or yield, but Hinkal aims to change that.
The Hinkal protocol will allow users to stake their ETH in the Shielded Pool in exchange for hETH, a privacy derivative that can be used in a variety of decentralized applications, including trading, lending, or as collateral on DeFi platforms.
This gives users the ability to maintain their privacy while still benefiting from the liquidity and versatility of the derivative.
Anonymous Staking?
Hinkal’s latest launch, unveiled by CTO and co-founder Nika Coreli during the Hinkal V.2 presentation at the Blockchain and Social Systems (BASS) conference at Stanford, introduces the concept of “anonymous staking.”
With anonymous staking, users can contribute their Ethereum to the Secure Pool and receive hETH in exchange, Coreli said in a press release.
The liquid privacy derivative allows participants to join the system without permissions, meaning that even users who don’t need privacy for their transactions can benefit from the system by earning income. The more participants, the larger the Secure Pool becomes, improving privacy for everyone.
In July, at EthCC 7, Hinkal launched the Shared Privacy Protocol, which enables cross-chain privacy through anonymous staking.
Hinkal says the privacy protocol offers several benefits, including the ability for stakers to stake native and staked assets on the protocol, generating additional income, while maintaining the flexibility to trade yield tokens on other decentralized applications.
