TheBlock
Avail has launched ShieldTX, a privacy tool for Hyperliquid perpetuals traders that opens each position through a separate wallet to make trades harder for copy-trading bots to link. ShieldTX analyzed 332,317 wallets over 30 days and estimated that traders being copied paid a median 63 basis points more per trade in execution costs.
Why it matters
Bots can track publicly visible Hyperliquid wallets and mirror positions within seconds. ShieldTX flagged potential copiers when they matched a trader’s coin and long or short position within 60 seconds at least 10 times over the review period. The tool also includes a scanner to help traders identify wallets that may be following them.
A separate wallet for each position is intended to break the link between a trader’s original wallet and their activity. ShieldTX holds deposits in a vault contract on Arbitrum, creates a new Hyperliquid wallet for each trade, and returns proceeds to the user’s shielded balance when the position closes. Positions remain visible on Hyperliquid, but are not directly linked onchain to the original wallet.
Market impact
ShieldTX’s private beta included 75 traders, generated about $50 million in trading volume, and created more than 3,800 wallets. Avail says beta users avoided copy-trading bots, but no before-and-after execution-cost comparison was provided. Broader access is opening through invite codes, with discounts for AVAIL stakers.
The service runs on Avail’s Nightshade zero-knowledge privacy infrastructure and targets wallets trading at least $500,000, as well as apps using Hyperliquid builder codes. Avail says internal reviews and external security consultations have taken place, with a full audit underway. Hyperliquid’s core team was not directly involved in ShieldTX’s development.
Frequently asked questions
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How does ShieldTX make Hyperliquid trades harder to copy?
It creates a new Hyperliquid wallet for each position, making it harder to link successive trades to a trader’s original wallet.
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What added execution cost did ShieldTX estimate for copied traders?
Its analysis put the median added execution cost at 63 basis points per trade for traders being copied.
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How did ShieldTX identify potential copy-trading wallets?
It flagged wallets matching a trader’s coin and long or short position within 60 seconds at least 10 times over a 30-day period.
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Can Hyperliquid users still see ShieldTX positions?
Yes. Positions remain visible on Hyperliquid, but are not directly linked onchain to the trader’s original wallet.
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What happened during ShieldTX’s private beta?
The beta involved 75 traders, about $50 million in trading volume and more than 3,800 wallets. Avail says users avoided copy-trading bots, but provided no before-and-after execution-cost comparison.
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