🛡️ Privacy Pools v2 is live: Privacy isn’t just about hiding your funds—you can earn yield, too?
Yesterday, we were watching hackers funnel stolen funds into Tornado Cash in batches. Today, Ethereum has a new upgrade to a different privacy solution: Privacy Pools v2, officially launched by the 0xbow team.
First, some background: Since v1 launched in March 2025, it has processed more than $26 million in total.
What’s new in v2:
🔹 Private transfers and payment requests, so even everyday payments can stay private
🔹 Private swaps through partners such as LI.FI
🔹 Funds in the privacy pool can automatically be put to work on Aave to earn yield
🔹 Available on seven chains, including Ethereum, Arbitrum, and Base
🔹 Fully self-custodial: depositing breaks the public link, and you can withdraw to any address
The key feature: it screens funds to keep illicit money out of the pool, while the team stresses that there are no backdoors. CEO Nathaniel Fried says that in v2, privacy doesn’t just protect you—it can also earn you yield.
My take:
The age-old dilemma of crypto privacy is that “good actors want privacy, and bad actors do, too.” Tornado’s approach was to have no restrictions at all, which ultimately left it caught between regulators and hackers. Privacy Pools takes the “screen first, then go private” approach. It sacrifices some purity in exchange for the possibility that ordinary users and institutions will feel comfortable using it.
But keep two things in mind: Who sets the screening criteria, and could they wrongly flag legitimate users? These are questions to watch over the long term. And adding Aave yield means taking on another layer of protocol risk—it’s not free money.
Which kind of privacy do you prefer: completely permissionless, or with compliance screening? Let’s discuss in the comments 👇
#隐私 #以太坊 #DeFi #PrivacyPools
Yesterday, we were watching hackers funnel stolen funds into Tornado Cash in batches. Today, Ethereum has a new upgrade to a different privacy solution: Privacy Pools v2, officially launched by the 0xbow team.
First, some background: Since v1 launched in March 2025, it has processed more than $26 million in total.
What’s new in v2:
🔹 Private transfers and payment requests, so even everyday payments can stay private
🔹 Private swaps through partners such as LI.FI
🔹 Funds in the privacy pool can automatically be put to work on Aave to earn yield
🔹 Available on seven chains, including Ethereum, Arbitrum, and Base
🔹 Fully self-custodial: depositing breaks the public link, and you can withdraw to any address
The key feature: it screens funds to keep illicit money out of the pool, while the team stresses that there are no backdoors. CEO Nathaniel Fried says that in v2, privacy doesn’t just protect you—it can also earn you yield.
My take:
The age-old dilemma of crypto privacy is that “good actors want privacy, and bad actors do, too.” Tornado’s approach was to have no restrictions at all, which ultimately left it caught between regulators and hackers. Privacy Pools takes the “screen first, then go private” approach. It sacrifices some purity in exchange for the possibility that ordinary users and institutions will feel comfortable using it.
But keep two things in mind: Who sets the screening criteria, and could they wrongly flag legitimate users? These are questions to watch over the long term. And adding Aave yield means taking on another layer of protocol risk—it’s not free money.
Which kind of privacy do you prefer: completely permissionless, or with compliance screening? Let’s discuss in the comments 👇
#隐私 #以太坊 #DeFi #PrivacyPools