Privacy
Why Privacy Matters for Portfolio Managers
DeFi today is transparent by default — which is powerful, but often limiting.
In particular, vault curation of public, blockchain-based DeFi products is one of the most promising business models for the next generation of finance. However, its scalability and long-term sustainability are limited by a fundamental issue: the need for portfolio managers to protect their alpha.
In today's DeFi environment, vault tokenization standards expose real-time portfolio compositions and trading behaviors. Copycats and freeloaders can easily monitor, reverse-engineer, and replicate strategies without bearing the associated research and execution costs.
Without privacy, managers interested in avoiding liquidity fragmentation are forced into an impossible trade-off between:
- Sharing all their moves and risking the loss of their edge, or
- Operating off-chain, undermining the auditability and composability of DeFi.
If DeFi is to scale professional asset management, confidentiality must become a first-class primitive — just as composability, security, and permissionlessness already are.
Our Commitment to Onchain Privacy
Through innovations like confidential smart contracts, Orion enables:
- Protection of proprietary strategies without sacrificing onchain composability;
- Private portfolio management with verifiable, encrypted performance;
- Auditability for users and LPs without exposing sensitive manager behavior: vault strategies remain private, with holdings and trades encrypted, while performance remains auditable.
- MEV protection, safeguarding trade execution against frontrunning and sandwich attacks;
- Users to deposit into vaults without revealing their positions or allocations.
By integrating confidential computing natively into our architecture, Orion brings institutional-grade privacy to the permissionless world of DeFi — unlocking a new era of scalable, professionalized, and competitive onchain asset management.
Confidential Smart Contracts: A Key Enabler
Orion integrates advancements in cryptography to power private vault strategies and encrypted performance tracking. One of the most promising technologies in this space is fhEVM.
What is fhEVM?
fhEVM1 2 is an innovative technology that integrates Fully Homomorphic Encryption (FHE) into the Ethereum Virtual Machine (EVM). This integration enables the execution of confidential smart contracts on encrypted data — ensuring both data privacy and composability within blockchain environments.
-
Data Encryption
Transaction inputs and on-chain states are encrypted, ensuring that sensitive information remains confidential, even from validators. -
Encrypted Computation
Smart contracts operate directly on encrypted data using FHE, allowing computations without decryption. This preserves data privacy while enabling complex operations. -
Decentralized Decryption
Access to decrypted data is managed on-chain through programmable privacy settings. The decryption process is decentralized via a threshold multiparty computation (MPC) protocol, enhancing security and trustlessness.
All of this runs fully onchain, remaining non-custodial and verifiable by anyone.