Namada shielded actions: private DeFi across connected chains
Quote413 words
Explains shielded actions, where users sign a sequence on Namada that triggers a transfer over IBC, a transparent trade on Osmosis and a return to the shielded set, breaking correlation between source and result.
Key claims
Shielded actions work with any chain connected to Namada, e.g. Ethereum
They can cover DEX swaps, perp trades, NFT trades and LP actions
Shielded Actions with Namada
What if there was a way to interact with all your favourite dApps entirely privately? 🥷
Well, with @namada there soon will be! 🚧
Let me introduce you to shielded actions on Namada and how you can use them to preserve your financial privacy when engaging in the world of DeFi!
Namada is a fully asset-agnostic privacy solution built to support any asset across any network!
I have recently started an extensive content series on Namada. If you’re not familiar with what their mission & vision is, check my high-level breakdown here! 👇
🔗 twitter.com/zerokn0wledge_/status/1719999499970724290
If you want a technical explainer of how Namada works, have a look here! 👇
🔗 twitter.com/zerokn0wledge_/status/1721857782117228598
So, with shielded actions, you can basically use Namada to directly interact with other chains and their respective dApps privately, regardless of whether that chain is transparent/public or if it is private itself.
Let’s take the example of an application-specific chains like Osmosis. With Namada, users can trade ATOM for OSMO privately by signing a sequence of actions on Namada that then get triggered automatically:
🟡 Transfer ATOM from the shielded account on Namada over IBC to a transparent account on Osmosis.
🟡 Trade ATOM for OSMO on Osmosis (this interaction is transparent).
🟡 Transfer the OSMO from Osmosis to the user's shielded account on Namada over IBC.
As a result, the user has traded ATOM for OSMO privately and there is no correlation between the identity of the source ATOM from the shielded set and the resulting OSMO to the shielded set.
It’s also important to note that shielded actions are not limited to application-specific chains that are IBC compatible (like Osmosis). It works with any chain that is connected to Namada, e.g. Ethereum, and the actions can be generalised to interact with any dApp.
So shielded actions can basically be:
🟡 DEX Swaps
🟡 Perp Trades
🟡 NFT buys/sells
🟡 LP add/remove
🟡 more!
This both chain- and asset-agnostic approach towards privacy is a game-changer and will in my opinion be a key piece of infrastructure in the multi-chain future that we’re heading towards. Interoperability & privacy solutions will both be hot narratives and Namada is strong on both, combining it into a revolutionary cross-chain enabler for privacy-sensitive use cases!
That’s a wrap for today, I hope you enjoyed this post! 🫡
Make sure to follow me @zerokn0wledge_ and @namada to stay up to date with all the latest developments around this amazing technology! 🟡🥷
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What came next · since 09 Nov 2023
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This explainer walks through how things work without making a call on the token, so price moves since publication are shown as market context.
Mentioned for context
$OSMOOsmosissince publication−90%−96% vs BTC
Since then
Zero has written 8 more pieces on Namada since this one.
- Namada's free market launch: why a fully liquid day-one token was deliberateOn Namada
- Namada: the multi-asset shielded pool and its valuation gap to ZEC and XMROn Namada
- NAM listing: Namada as Zcash on steroids at a fraction of ZEC valuationOn Namada
- Namada mainnet phase 5: shielded pool, MASP and selective disclosureOn Namada
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