Privacy-focused L2 COTI has announced a partnership with intent-based privacy perpetuals DEX PriveX. The deal will support the development of better onchain tools to enhance the trading of perpetual swaps markets while giving users the ability to mask sensitive financial information.
By integrating COTI’s L2 technology into its platform, PriveX is able to support confidential transactions – something that is not available by default on public blockchains. The partnership will support PriveX’s goal of becoming the leading perps DEX while showcasing the versatility of COTI’s technology, powered by Garbled Circuits.
Perps Meet Privacy
Perpetual swaps, a type of leveraged futures trading, tends to attract experienced, high net-worth individuals and trading firms. These are sort of entities who don’t particularly want to broadcast their wealth, current portfolio, and active positions to the entire world, which is why there’s a clear application for privacy within onchain perps markets.
COTI has developed Garbled Circuits technology, which ensures secure multi-party computation. This cryptographic method allows for secure transactions by enabling parties to compute on encrypted data without revealing it which is ideal for privacy-preserving operations, particularly in payment systems and, in the case of PriveX, for trading.
One of the key benefits to Garbled Circuits is that it is computationally much lighter than ZK proofs, which means it can be integrated without causing blockchain bloat. It’s an efficient solution whose use cases are only just beginning to be appreciated. While applications in TradFi, banking, healthcare, and logistics lie further down the line, in the here and now it’s found a compelling use case in beefing up PriveX.
Thanks to the integration of COTI’s technology, PriveX users will be able to implement strategies without revealing sensitive data, such as stop-losses or trade amounts, to other users, reducing the prospect of market manipulation. This means that traders can enjoy the best of both worlds: non-custodial trading coupled with the sort of privacy more synonymous with a CEX.
Making Moves Ahead of Mainnet
Like COTI, PriveX is still in the building phase, having laid out plans for its test-mainnet to go live in the near future, granting whitelisted addresses on Base access to its perps platform. When COTI’s L2 goes live on mainnet later this year, PriveX will become the first perps DEX to operate on it, serving as a proof of concept for COTI’s privacy tech and giving a taster of the sort of efficiencies that Garbled Circuits can deliver.
PriveX promises to introduce novel features such as hidden orders and delayed transactions, allowing sophisticated traders to mask their intentions and capture the benefits of onchain perps without giving away their closely guarded secrets. With the prospect of up to 60x leverage and deep liquidity courtesy of partners such as Symm.io and IntentX.io, anticipation is building for the full launch of PriveX. It has the potential to shake up the onchain perps landscape and privacy sector in one fell swoop while showing what COTI’s fast EVM L2 is capable of.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
