Introduction

What Veilnet Provides

• Shielded balances: Your net worth within Veilnet is invisible to the public
• Shielded addresses: Interactions within the Veilnet ecosystem do not publicly link your wallet to your counterparties
• Private transfers: Send tokens securely without leaving an on-chain trail
• Private bridging: Move assets between Base and Ethereum privately
• Privacy without relying on a traditional shielded pool: Veilnet utilizes a deterministic state accumulator backed by Merkle proofs, rather than traditional ZK shielded pools, ensuring higher efficiency and scalability
• Contract-level privacy layer: Privacy is enforced at the smart contract level, enabling composability with other DeFi primitives in the future

Key Design Principles

• Encrypted by design: All internal state transitions and user intents are protected
• Contract-level privacy: The smart contract acts as the ultimate arbiter of truth through cryptographic verification
• Composable privacy: Designed to eventually wrap standard DeFi actions
• User-side privacy UX: A seamless frontend experience that feels like standard Web3, with privacy built-in
• No unnecessary public exposure: Every mechanism is optimized to leak zero metadata wherever possible

Why Stateless Execution Matters

Performing state transitions through a stateless execution layer ensures that operations (like transfers and swaps) can be processed privately without exposing the underlying values to observers. This allows for rapid, scalable, and private interactions that would be expensive or impossible directly on-chain.

Technical Positioning

Veilnet positions itself as the missing privacy infrastructure for the EVM ecosystem. It is not just an application, but a protocol that can be integrated into broader DeFi workflows. Starting with Base and Ethereum, Veilnet is designed to be chain-agnostic. The contract-level privacy layer allows it to expand seamlessly across the wider EVM ecosystem.