Starknet just made private DeFi about as easy as toggling on dark mode. The Ethereum layer 2 network has published a walkthrough for accessing its privacy features through compatible wallets, turning what used to be a multi-step cryptographic headache into something approaching a one-click experience.
The guide centers on Starknet’s STRK20 privacy framework, which went live around June 9. It allows users to shield ERC-20 assets directly from wallets like Xverse and Ready, then interact with DeFi protocols, including swaps, lending, and staking, without broadcasting every detail of their financial life to the entire blockchain.
How the shielding actually works
Starknet’s approach lets users convert standard tokens into shielded versions through their wallet interface. The framework is designed to maintain composability with public liquidity pools, meaning private transactions can tap into existing liquidity rather than being confined to isolated ecosystems where shielded assets could only interact with other shielded assets.
Transactions using the privacy features settle in under five seconds at low costs, according to Starknet. That’s roughly the same speed as a standard Starknet transaction, meaning the privacy layer doesn’t introduce meaningful friction.
