Avail has introduced ShieldTX, a privacy tool designed for traders on the Hyperliquid decentralized exchange. The service aims to prevent copy-trading bots from tracking and front-running successful traders by opening each perpetual futures position from a unique, unlinkable wallet.
The process begins when a user deposits USDC into a vault on Arbitrum. ShieldTX then utilizes these funds to create new Hyperliquid accounts on demand. While the trades execute natively on the Hyperliquid order book, the tool effectively masks the connection between the trader's funding source and their individual positions.
Technically, ShieldTX operates on Avail’s Nightshade zkAppchain, which employs a commit-first, prove-later architecture with settlement on Arbitrum. The system uses zero-knowledge proofs to validate actions without exposing sensitive user details.
The tool supports all Hyperliquid perpetual markets with leverage up to 40x. Pricing includes a fee of 5 basis points of the notional value, plus a fixed charge of $1 to open a position and approximately $2 for closes sent to external wallets.
During its private beta phase, ShieldTX processed over $2.5 million in trading volume. Avail suggests that by mitigating the impact of copy-trading bots, users could potentially save up to 25 basis points per transaction, offsetting the service costs.
