Starknet Adds Wallet Privacy Features for DeFi Transactions

Starknet’s developers are rolling out a new privacy capability aimed at reducing wallet-to-activity linking in decentralized finance. StarkWare, the team behind the Ethereum layer-2, announced Shadow Accounts , a feature designed to let users interact with DeFi applications without routing their onchain activity directly through their primary wallet address. According to StarkWare, Shadow Accounts create separate, persistent addresses for individual applications. Users can fund these accounts using shielded balances from the network’s STRK20 privacy pool , enabling lending, trading and other DeFi positions to be maintained under different onchain identities—while still keeping their underlying data visible on the blockchain.