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

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Deployment of Binance's bStocks into decentralized finance reached 11.2% in early October 2026, while the share of deposited bStocks collateral borrowed against reached 46.2% by September 10, 2026

Because individual Bitcoin transaction outputs cannot be divided, liquidations target one BTCVault at a time, allowing liquidators to make repeated calls until position health is restored.

To enable Aave V4 to track collateral on Ethereum, the integration creates a transfer-restricted ERC-20 token named vaultBTC as an internal accounting record representing locked Bitcoin on a one-to-one basis.

Six security firms participated in audit work covering the Babylon integration components, including Coinspect, Sherlock, Zellic, ABDK, ZK Security, and Runtime Verification.

To bypass multi-day Bitcoin redemption delays, permissionless liquidators using the BTC Vault Swap Spoke receive Wrapped Bitcoin (WBTC) immediately while authorized participants complete native Bitcoin settlement.

Redeeming a native Bitcoin vault during collateral settlement can take several days due to a required challenge period on the Bitcoin network.

The BTC Vault Swap Spoke is introduced as a second component in Aave V4 specifically to manage the settlement process for liquidated Bitcoin collateral.

StarkWare demonstrated a Private Know Your Customer system on June 23, 2026, using zero-knowledge proofs on mobile devices to verify identity criteria without exposing full passport documents.

StarkWare announced the launch of Shadow Accounts on October 13, 2026, allowing decentralized finance users to create persistent, application-specific identities without exposing links to their primary crypto wallets.

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.

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

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

Authorized arbitrageurs acquire escrowed vaults in the liquidation process by repaying the outstanding WBTC debt plus accrued interest before redeeming underlying BTC on the Bitcoin network.

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

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

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 Shadow Accounts hold public ERC-20 tokens, allowing blockchain observers to examine transaction histories once a specific Shadow Account address is identified.