Crypto

Avail launches ShieldTX to hide Hyperliquid traders from copy-trading bots

The privacy tool opens a separate wallet for each perpetual futures position, making it harder for others to follow a trader's moves.

On a fully public blockchain, everyone can see what you trade. A new tool from Avail aims to make that harder for traders on Hyperliquid.

What happened

Avail has launched ShieldTX, a privacy tool for Hyperliquid. It creates a separate wallet for each perpetual futures position a trader opens. The tool is aimed at copy-trading bots that track successful traders and automatically mirror their positions.

Background

Hyperliquid is a blockchain built for trading perpetual futures, contracts that let traders bet on prices with leverage. Because its order book and positions are on-chain, anyone can watch a wallet’s activity in real time.

That transparency has created an industry of tracking. Bots and dashboards follow large or successful wallets and copy their trades instantly. For the traders being followed, this can be costly: copiers can move prices against them, or trade ahead of them when they try to exit.

By spreading positions across many fresh wallets, ShieldTX makes it harder to link trades to a single person and build a picture of their strategy.

Why it matters

Privacy is becoming a practical issue for on-chain trading. Traditional markets keep individual positions private, while public blockchains expose them by default.

Tools like ShieldTX offer a middle ground, but they come with questions. Splitting activity across many wallets can make it harder for platforms and regulators to monitor risk and spot manipulation. As on-chain trading grows and draws in partners such as the owner of the NYSE, the balance between privacy and oversight will matter more.

Written by Tech Security with AI assistance. Not financial advice. See our disclaimer.

More stories

All news →