Private DeFi
DeFi's transparency is both its strength and weakness. While open ledgers enable trustless verification, they also expose every transaction to frontrunning, MEV extraction, and competitive intelligence gathering. AFHE enables truly private DeFi.
The Problem with Public DeFi
Every DeFi transaction today reveals:
Trade details: Amount, direction, timing
Wallet balances: Complete portfolio exposure
Strategy patterns: Predictable behavior for MEV bots
Counterparty information: Who you're trading with
This transparency costs users billions annually through MEV extraction and front-running.
AFHE-Powered Solutions
Private AMMs
Traditional AMM: Everyone sees pending swaps → frontrunning
AFHE AMM: Trades execute on encrypted order flow
How it works:
User submits encrypted swap request
AMM processes swap on encrypted balances
State updates without revealing trade details
Only the user knows their execution price
Benefits:
Zero frontrunning
No sandwich attacks
Fair execution for all users
Dark Pool Trading
Institutional-grade trading without information leakage:
Encrypted order books: Orders visible only to matching engine
Hidden liquidity: Large orders don't move markets
Private settlement: Counterparties remain anonymous
Compliance ready: Selective disclosure for regulators
Private Lending
Current lending protocols expose:
Collateral positions (liquidation hunting)
Borrow rates (rate arbitrage)
Health factors (timing attacks)
AFHE lending keeps positions encrypted:
Liquidations happen without position exposure
Interest accrues on encrypted balances
Collateral ratios verified without revelation
Encrypted Stablecoins
Privacy-preserving stablecoins with compliance:
Private transfers: Amount and recipient hidden
Selective disclosure: Prove balance without revealing it
Regulatory compliance: Auditable when required
Cross-chain: Works across any blockchain
Integration Architecture
AFHE integrates with existing DeFi as a coprocessor:
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