Discover Penumbra, a secure and privacy-focused blockchain within the Cosmos ecosystem. Learn how Penumbra is revolutionizing DeFi operations and setting new standards in blockchain privacy and innovation.
Penumbra is redefining secure trading within the blockchain realm, particularly within the Cosmos ecosystem. This article explores Penumbra’s privacy-centric features and seamless DeFi operations, illustrating how it sets new benchmarks in blockchain privacy and innovation.
What is Penumbra?
Penumbra is a secure trading blockchain integrated into the Cosmos ecosystem, designed for privacy-focused users. It allows users to engage in DeFi operations such as bridging, swapping, and staking without concerns about security breaches or information leaks. Penumbra’s connection with the Cosmos ecosystem is facilitated by Inter Blockchain Communication (IBC), enabling secure and private trading of any IBC-compatible assets. Unlike other privacy protocols that require users to select which transactions to shield, Penumbra sets every transaction to private by default, creating a shielded zone within the Cosmos ecosystem. Additionally, Penumbra offers the flexibility to selectively disclose activities to authorized third parties.
Penumbra’s Products
Transact
Experience shielded transactions across chains with any cryptoasset.
Private Transactions
Penumbra, a fully shielded blockchain, ensures the safety and confidentiality of users’ financial data. All transactions are set to private by default, preventing unauthorized tracing or decryption.
Natively Cross-Chain
With IBC, Penumbra can shield any cryptoasset from any IBC-compatible chain. Consequently, Penumbra serves as a secure pool for the entire Cosmos ecosystem and beyond.
Transparency on Demand
Every Penumbra address supports viewing capabilities, allowing users to disclose their activity to authorized third parties for compliance or other reasons.
Fast, Low-fee Transactions
Enjoy low-fee and fast transactions with Penumbra, thanks to its status as a sovereign layer-1 blockchain using proof-of-stake consensus.
Stake
Experience the world’s pioneering shielded proof-of-stake network, ensuring privacy for delegators and accountability for validators.
Staking Token
The PEN staking token fortifies the Penumbra network and enables token holders to participate in project governance through on-chain voting. Penumbra employs a novel staking design that ensures privacy for delegators and accountability for validators.
Native Delegation Tokens
Penumbra issues a native delegation token, dPEN, for each validator, signifying 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 distributing rewards to delegators, rewards accumulate in the delegation pool and are realized only when a delegator withdraws their delegation.
On-chain Governance
Stakeholders dictate the network’s future by voting on governance proposals, ensuring that the project’s direction is not monopolized by a single entity.
Swap
Experience shielded swaps between any cryptoasset, with sealed-bid, batch pricing, and no frontrunning.
Private Swaps
Users can swap between any pair of assets without exposing their trading history to the world using ZSwap, Penumbra’s shielded automated market maker design based on frequent batch auctions.
Sealed-bid, Batch Execution
Swaps are sealed upon submission, amalgamated in encrypted form, and executed as a single batch with a common clearing price. This approach prevents front-running and ensures better trade execution. Only the batch totals are revealed, ensuring 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 front-running them. But as a fully shielded chain, Penumbra has no MEV, because transactions do not leak data about user activity.
Marketmake
Manage concentrated liquidity positions actively, without revealing a trading strategy.
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
Transparent chains allow miners to extract value (MEV) by inspecting the contents of transactions and reordering or front-running them. However, as a fully shielded chain, Penumbra has no MEV because transactions do not leak data about user activity.
Roadmap
Investors
Conclusion
Penumbra Protocol is a trailblazer in the blockchain space, setting new standards for privacy and innovation. Its extensive array of privacy-centric features, seamless integration with the Cosmos ecosystem, and commitment to user control make it a pioneering platform. Penumbra is at the forefront of blockchain technology, charting a future where privacy and flexibility are paramount.
About OriginStake
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