Starknet has rolled out Shadow Accounts, a wallet privacy feature designed to let users interact with DeFi applications without publicly tying those actions to their main wallets. According to StarkWare, the feature creates separate persistent addresses for individual apps and lets users fund them with shielded balances held in Starknet’s STRK20 privacy pool. The setup is meant to let users manage lending, trading and other DeFi positions under different onchain identities.
Starknet said the feature hides the connection between a Shadow Account and the wallet that funds it, but it does not make activity invisible. Balances, transactions and positions tied to those accounts still remain publicly visible onchain. Once a DeFi app integrates the feature, users can connect a wallet, switch between public and private modes, deposit assets into a vault and keep positions active through the Shadow Account until funds are withdrawn back into a shielded balance.
StarkWare said the system could later expand beyond vaults into liquidity provision, lending, borrowing, staking, derivatives trading, prediction markets and NFT marketplaces. The release follows the company’s broader privacy push on Starknet, including the STRK20 privacy framework introduced in June and a Private Know Your Customer demonstration later that month.
Ethereum layer-2 network Starknet has introduced a wallet privacy feature that lets users use decentralized finance applications without publicly linking that activity to their main wallets.
StarkWare, the team behind Starknet, said the new feature, called Shadow Accounts, creates separate persistent addresses for individual applications. Users can fund those accounts with shielded balances held in the network’s STRK20 privacy pool, allowing them to maintain lending, trading and other DeFi positions under different onchain identities.
Starknet said the feature obscures the connection between a Shadow Account and the wallet funding it. At the same time, balances, transactions and positions associated with those accounts remain publicly visible onchain.
How the feature works inside DeFi apps
Once a DeFi application integrates the system, users can connect their wallets, switch from public mode to private mode and deposit assets into a vault. Shadow Accounts then keep those positions active until the user withdraws funds back into a shielded balance.
Potential expansion beyond vaults
StarkWare said the functionality could later extend beyond vaults to liquidity provision, lending, borrowing, staking, derivatives trading, prediction markets and NFT marketplaces.
Part of a broader privacy push
The launch follows a wider privacy effort by StarkWare. In June, the company introduced its STRK20 privacy framework, which supports private transfers and shielded token balances on Starknet.
Later that month, StarkWare also demonstrated a Private Know Your Customer system that let users verify personal information without revealing their full identity documents.
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