Decentralized Protocol Hinkal Launches Privacy-Focused ETH Derivatives
The blockchain space is constantly evolving, with new projects and innovations emerging to address the needs and challenges of users. One such project making waves in the decentralized finance (DeFi) sector is Hinkal Protocol, which has recently announced the launch of “hETH” - an ETH liquid privacy derivative.
According to Hinkal, hETH aims to tackle privacy concerns in DeFi while also providing yield opportunities for participants. This innovative product introduces a new concept that enables ethereum stakers to maintain liquidity, earn yield, and contribute to on-chain privacy simultaneously.
What’s the Concept Behind hETH?
The hETH is described as a liquid privacy derivative built on the ethereum blockchain. Users can stake their ETH in Hinkal's “Shielded Pool” to preserve liquidity while benefiting from enhanced privacy features. Traditionally, achieving anonymity and privacy in DeFi has been a challenge without compromising capital efficiency or yield potential. Hinkal Protocol seeks to change this narrative by offering a solution that combines privacy with usability.
By staking ETH in the Shielded Pool, users receive hETH - a privacy derivative that can be utilized across various decentralized applications, including trading, lending, and collateralizing assets on DeFi platforms. This approach allows users to maintain their privacy while leveraging the liquidity and versatility of the derivative.
Anonymity staking?
During the unveiling of Hinkal V.2 at the Blockchain and Social Systems (BASS) conference at Stanford, CTO and co-founder Nika Koreli introduced the concept of “anonymity staking.” Through this feature, users can contribute their ethereum to the Shielded Pool and receive hETH in return. The liquid privacy derivative offers permissionless participation, enabling users to earn yield even if they do not require privacy for their transactions.
Hinkal's model emphasizes the collective benefits of anonymity staking, as the more participants engage in the system, the larger the Shielded Pool grows, ultimately enhancing privacy for all users involved. This unique approach to combining privacy and yield generation sets Hinkal Protocol apart in the DeFi ecosystem.
In a previous development, Hinkal had launched the Shared Privacy Protocol during EthCC 7. This protocol enables cross-chain privacy through anonymous staking, offering stakers the opportunity to deploy native and staked assets to the protocol. Users can generate additional yield while retaining the flexibility to trade yield tokens on other decentralized applications, further enhancing the value proposition of the platform.
