In the evolving blockchain landscape, privacy is crucial for DeFi users. Penumbra, integrated with Cosmos via Inter Blockchain Communication (IBC), offers unparalleled privacy for trading, bridging, swapping, and staking. Unlike traditional protocols, Penumbra automatically shields every transaction, ensuring default privacy and security for all users.
What is Penumbra?
Penumbra is a blockchain designed for private trading within the Cosmos ecosystem. It brings privacy to users, allowing them to utilize DeFi functions such as bridging, swapping, staking, and more, without worrying about security and information disclosure. Connecting to the Cosmos ecosystem through Inter Blockchain Communication (IBC), Penumbra acts as a protected pool for all IBC-compatible assets, ensuring secure and private transactions.
Penumbra is unique in that it serves as a shielded area for the Cosmos ecosystem. Unlike other privacy protocols where users must select which transactions to shield, every transaction in Penumbra is fully shielded and set to private by default. Additionally, Penumbra allows users to selectively disclose their activities to authorized third parties.
Tìm hiểu thêm về Penumbra là gì?
Transact Privately
Penumbra is a fully shielded blockchain, keeping users’ financial data safe and secure. All transactions are private by default and cannot be traced or decrypted without a user’s permission. This ensures confidentiality throughout the transaction lifecycle.
Natively Cross-Chain
Penumbra works with Inter Blockchain Communication (IBC) to shield any cryptoasset originating from any IBC-compatible chain. As a result, Penumbra acts as a shielded pool for the entire Cosmos ecosystem and beyond.
Transparency on Demand
Every Penumbra address supports viewing capability, allowing users to opt in to disclose their activity to third parties for compliance or other reasons. This feature offers flexibility and control over privacy.
Fast, Low-fee Transactions
Penumbra transactions feature low fees and fast finality, thanks to its status as a sovereign layer-1 blockchain using proof-of-stake consensus.
Stake Privately
Penumbra is the world’s first shielded proof-of-stake network, providing privacy for delegators and accountability for validators.
Staking Token
The PEN staking token secures the Penumbra network and allows token holders to participate in project governance through on-chain voting. Penumbra uses a novel staking design that offers privacy for delegators and accountability for validators.
Native Delegation Tokens
For each validator, Penumbra provides a native delegation token called dPEN, representing a share of the delegation pool staked with that validator. These tokens are recorded in the shielded pool and can be transferred or traded like any other asset.
Private Delegation
Stakeholders can privately delegate to a validator by exchanging staking tokens for the validator’s delegation token. Instead of issuing rewards to delegators, rewards accrue to the delegation pool and are realized only when a delegator withdraws their delegation.
On-chain Governance
Stakeholders decide the future of the network by voting on governance proposals, ensuring that the project’s direction is not controlled by any single entity.
Swap Privately
Penumbra facilitates shielded swaps between any kind of cryptoasset, with sealed-bid, batch pricing, and no frontrunning.
Private Swaps
Users can swap between any pair of assets without revealing their trading history to the world using ZSwap, Penumbra’s shielded automated market maker (AMM) design based on frequent batch auctions.
Sealed-bid, Batch Execution
Swaps are sealed on submission, combined in encrypted form, and executed as a single batch with a common clearing price. This prevents frontrunning and provides better trade execution. Only the batch totals are revealed, providing long-term privacy for individual traders’ activity.
No MEV
Transparent chains allow miners to extract value (MEV) by inspecting the contents of transactions and reordering or frontrunning them. As a fully shielded chain, Penumbra has no MEV, because transactions do not leak data about user activity.
Marketmake Privately
Penumbra allows concentrated liquidity positions to be actively managed without revealing trading strategies.
Concentrated Liquidity
ZSwap, Penumbra’s shielded AMM design, supports concentrated liquidity, allowing market allocation of liquidity over the price range of a trading pair.
Private Strategies
Every market is also a market in information. As a fully shielded chain, Penumbra allows market makers to control the disclosure of information about their trading strategies, instead of revealing all of their activity to the world.
No MEV
Penumbra’s fully shielded chain ensures no miner extractable value (MEV), as transactions do not leak data about user activity.
Conclusion
Penumbra stands out as a revolutionary blockchain in the Cosmos ecosystem, offering unmatched privacy features for transactions, staking, and trading. Its innovative mechanisms ensure security, confidentiality, and flexibility, making it a promising platform for private DeFi operations.
About OriginStake
Originstake is your professional and trusted validator that assists you in your staking activities. We provide full support services, a reward management dashboard, rewards sharing, and much more! With Originstake, staking is safe, profitable, and extremely cost-effective!
