Starknet has introduced Shadow Accounts, persistent pseudonymous addresses designed to let users interact with decentralized-finance applications without publicly connecting those activities to their main wallets. Each account is tied to a specific application and can use a separate nonce to create another identity.
The pool stores assets as encrypted notes and uses zero-knowledge proofs to validate private transfers, while the account-based DeFi action occurs through a separate address. Funds can later be collected back into the privacy pool.
The feature does not make the DeFi activity itself invisible. A Shadow Account’s balance, transactions, calls and positions remain public onchain; its privacy comes from breaking the publicly visible link to the user’s primary wallet. Deposits into and withdrawals from the privacy pool also create visible public-token movements.
The rollout builds on STRK20, Starknet’s framework for shielded ERC-20 balances, private transfers and private application flows. The system is available through the Starknet Wallet API and Privacy SDK, with planned integrations spanning lending, borrowing, staking, trading and vault strategies. Starknet’s stated rollout also includes broader wallet and application support, developer tooling and access for users and applications outside Starknet through cross-chain privacy flows.