Starknet launched its Shadow Accounts feature, enabling users to interact with decentralized finance applications without publicly linking activities to their primary wallets. The system creates distinct, persistent addresses for individual applications.
Users fund Shadow Accounts using shielded balances held within Starknet's STRK20 privacy pool. The system obscures the connection between the Shadow Account and the wallet providing its funding, though all balances, transactions, and positions associated with shadow accounts remain publicly visible on-chain.
Once integrated into a DeFi application, users can connect their wallets, activate a private mode, and deposit assets into a vault. Shadow Accounts maintain these positions until users withdraw funds back into a shielded balance.
StarkWare said the functionality will extend beyond vaults to liquidity provision, lending protocols, borrowing markets, staking, derivatives trading platforms, prediction markets, and NFT marketplaces.
The launch expands StarkWare's privacy efforts on Starknet. In June, the company introduced its STRK20 privacy framework, which facilitates private transfers and shielded token balances across the network. That month, StarkWare also demonstrated a Private Know Your Customer system allowing users to verify personal information without fully revealing identity documents.
