A new architecture encrypts trades and account data, letting only users and privacy council members access sensitive information on-chain.
Paradex has launched privacy-preserving perpetuals on mainnet, marking a major shift toward CEX-style privacy in a self-custodial model.
The new system ensures that only account holders and Paradex can view orders, positions, and balances, with privacy enforced across all layers, from Paradex Cloud to its L2 chain and Ethereum mainnet.
On L2, access to private trading data is now gated through authenticated RPC calls, meaning observers can no longer reconstruct account states through indexers. On L1, state updates posted to Ethereum are encrypted and verified using ZK proofs, closing off the data availability path for external observers.
A Privacy Council, currently comprising Paradex, Paradex Foundation, and Karnot, is responsible for decrypting data only if Paradex becomes inoperable, preserving both privacy and an escape hatch for users.
Paradex says this marks a new standard for self-custodial trading platforms, combining user privacy with decentralized recovery mechanisms.
