Privacy DeFi has a new breakthrough: after Zama and Morpho’s first confidential vault TVL surpassed $40 million, the product line has officially expanded. Users can now access 12 existing Morpho vaults on Ethereum in a confidential way, along with 4 newly built fully confidential vaults. In addition, a private swap feature has been launched. The technical core is Fully Homomorphic Encryption (FHE): your deposit amount, positions, and yields are all encrypted, and computation is carried out directly on the ciphertext. Anyone on-chain cannot see how much you borrowed or how much you earned. This hits one of DeFi’s biggest pain points: full transparency. Whale positions are monitored, sniped, and even targeted for liquidation—these are the costs of transparent ledgers. If FHE can run at an acceptable cost, the final privacy piece for institutional capital to enter DeFi will be in place. $40 million is only the beginning—this direction for the $ETH ecosystem is worth ongoing attention. Would you be willing to accept the extra costs that FHE brings for privacy? $ETH