Regulators should permit confidential perpetuals trading platforms to operate

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StarkWare introduced its STRK20 privacy framework on June 9, 2026, providing zero-knowledge shielded balances, private transfers, and viewing keys for auditing ERC-20 assets on Starknet.

StarkWare launched OffMarket, a privacy service that enables users to trade on Polymarket without publicly linking their trading positions to their primary accounts.

Financial Privacy Inc. holds OffMarket's master viewing key in a secure enclave under a multisignature arrangement with StarkWare, screening deposits against sanctions and reviewing legal requests for transaction data.

When withdrawing from a Starknet Shadow Account, funds return to shielded STRK20 balances using zero-knowledge proofs managed by a Starknet wallet

Starknet wallets handle zero-knowledge proof generation and shielded balance data during Shadow Account operations without requiring developers to access users' viewing keys.

Starknet Shadow Accounts allow users to manage decentralized finance positions without publicly linking their application activity to primary cryptocurrency wallets.

OffMarket is not owned or created by Polymarket and has no formal partnership with Polymarket, operating independently as part of Polymarket's verified builder program

OffMarket allows users to retain control of their keys in their browsers, while OffMarket's derived wallets are managed via user signatures to ensure non-custodial wallet recovery if OffMarket goes offline

OffMarket cannot mask public transaction sizes, order prices, execution timing, or public USDC pool transfers, which can potentially expose trader identities during low liquidity periods.

OffMarket executes private orders on Polymarket against existing order books, liquidity, and market prices, while enforcing Polymarket's normal taker fees and geographic restrictions against U.S. users.

Starknet's Shadow Account balances and transactions remain publicly visible on the blockchain, but the connection to a user's primary wallet address is obscured

Users fund Starknet Shadow Accounts by depositing supported assets into a shared privacy pool represented through encrypted STRK20 balances.

OpenZeppelin audited OffMarket's privacy pool contract in June 2026 without high-severity findings, and StarkWare formally verified the contract in July 2026.

OffMarket limits account deposits to $1,000 USDC in its open-source privacy pool, which holds around $1.5 million and 17,000 deposits as recorded by L2BEAT.

Institutional clients trade Hyperliquid perpetual futures through their Ripple Prime account without connecting directly to the permissionless venue

Ripple Prime real-world asset perpetual swaps derive their values from perpetual futures listed by Trade.xyz on the decentralized derivatives venue Hyperliquid

Papertrade is a decentralized synthetic perpetuals platform offering up to 1000x leverage without an order book

Aptos-based perpetual futures exchange Decibel plans to adopt Aptos's Encrypted Mempool feature to keep pending order details private until execution

Within the first 10 minutes of trading following Papertrade's launch around October 10, 2026, Papertrade generated $14.4 billion in notional trading volume

Shortly after launching around October 10, 2026, Papertrade's core liquidity pool held approximately $3.15 million to pay winning traders while offering leverage up to 1000x