The Core Problem
Public blockchains expose:
- Mempool Visibility & MEV Extraction: Public transaction pools allow searchers to front-run, back-run, and sandwich trades, resulting in significant value extraction from traders.
- Strategy & Balance Leakage: Wallet balances, trade volumes, historical activity, and active limit orders are permanently viewable on-chain, exposing quantitative strategies and capital movements to competitors.
- Institutional Capital Hesitancy: Institutional asset managers and liquidity providers are legally or competitively restricted from deploying capital into environments where positions, trade size, and counterparties are visible to the public.