VEILON is a cross-chain privacy infrastructure protocol and wallet designed to enable confidential, secure, and auditable transactions across various on-chain ecosystems. It aims to function as a privacy layer for decentralized finance (DeFi) and other Web3 activities by utilizing zero-knowledge cryptography. ^{[1] [2] [3]}

Overview

Established in July 2025, VEILON was developed to address the inherent lack of privacy on public blockchains, where transaction histories and wallet balances are typically transparent and traceable. The protocol's objective is to provide users with the tools to conduct on-chain activities, such as asset transfers and swaps, without publicly exposing their financial data. It functions as a privacy layer that allows users to maintain confidentiality while their transactions remain verifiable on-chain. The system is designed to operate directly on existing mainnets, which mitigates the risks associated with bridging assets to a separate, dedicated privacy chain. ^{[1] [2]}

The core principles of the project are decentralization, security, and scalability. VEILON is structured as a community-driven and autonomous protocol governed by a Decentralized Autonomous Organization (DAO). This model means there is no central corporate ownership, and the protocol is maintained by a global community of contributors. The platform's architecture is built to support both EVM-compatible networks like Ethereum and non-EVM chains such as Bitcoin and Solana, positioning it as a multi-chain privacy solution. It also incorporates optional auditability tools, allowing for selective transparency to meet compliance or reporting needs. ^{[1] [3]}

Products

VEILON's ecosystem includes several core products designed for users, developers, and traders seeking on-chain privacy. These tools leverage zero-knowledge cryptography to provide confidentiality for various on-chain activities. For developers, the platform offers a Builder's Toolkit, which includes Software Development Kits (SDKs), a "Cookbook," and a Developer Guide to facilitate the integration of privacy features into new or existing decentralized applications (dApps). ^{[1] [3]}

Veilon Wallet

The Veilon Wallet is a privacy-first, cross-chain crypto wallet designed for everyday use. It allows users to send tokens, receive private payments, and interact with dApps while maintaining confidentiality. Key features are designed to be user-friendly and powerful.

• Privacy by Design: The wallet utilizes stealth addresses for private fund reception, shielded transactions to keep transfers off the public chain, and stores transaction history locally rather than broadcasting it.
• Gasless Transactions: Through integration with a relayer network, users can send transactions without directly paying gas fees.
• Multi-Chain Support: The wallet has native support for Ethereum, Solana, and Bitcoin, with plans to add more networks.
• User Experience: It features a minimal interface with one-tap actions for shielding or transferring assets, QR code support for private payments, and a built-in contact book with shielded aliases. A "Privacy Score" feature is also planned.
• Compliance Tools: For DAOs, institutions, or users needing to report activity, the wallet includes optional view keys and compliance export functions. ^[4]

Veilon DEX

The Veilon DEX is a decentralized exchange built to protect a trader's identity, strategy, and transaction data. It enables users to swap tokens without linking their public wallet, exposing their actions in the mempool, or being vulnerable to front-running bots. The process works in four main steps:

1. Shield Assets: Users move tokens from a public wallet into Veilon’s shielded pool, which hides the balance and identity.
2. Initiate Swap: Within the wallet or via the SDK, the user selects the tokens to swap and generates a zero-knowledge proof of their intent.
3. Relayer Submission: An encrypted version of the swap is submitted to the blockchain by a relayer, which conceals the user's wallet and IP address.
4. Private Execution: The trade is executed, and the user's shielded balance is updated privately, leaving no public trace of the transaction flow. ^[5]

Veilon Sniper

The Veilon Sniper is a stealth trading engine integrated into the Veilon Wallet that allows users to buy newly listed tokens, such as meme coins or low-cap assets, at launch without revealing their strategy or identity. It is connected to Veilon's private DEX and relayer network. The execution flow is as follows:

1. Define Strategy: The user sets up sniper rules inside the wallet, specifying the target token address, maximum buy amount, and slippage/gas settings.
2. Generate ZK Intent: A zero-knowledge proof is generated on the user's device, which validates the trade's parameters without revealing them. This encrypts and seals the strategy.
3. Relayer Detection: Sniper-aware relayers monitor mempools and on-chain events on DEXs like Uniswap or Raydium. When the user's predefined conditions are met, the sniper is triggered.
4. Private Execution: A relayer executes the trade on-chain, paying gas on the user's behalf. The transaction is routed through the private DEX, ensuring the user's wallet address never appears in the mempool. ^[6]

Features

VEILON's protocol is built around a set of core features that provide privacy, usability for developers, and optional compliance mechanisms. These features are designed to function together to create a comprehensive privacy layer for various on-chain activities.

Private Transactions

The foundation of VEILON's privacy is built on three primary actions: shielding, transferring, and unshielding assets. These functions allow users to control the visibility of their on-chain financial activities. ^[7]

• Shield: This action moves assets from a public wallet into a private state within VEILON's zero-knowledge commitment pool. When assets are shielded, the amount is hidden, and the user's wallet address is delinked from the funds, making them untraceable by block explorers or third parties.
• Transfer: Users can send shielded assets to other users confidentially. During a private transfer, the identities of the sender and recipient, as well as the transaction amount, are kept private. The system uses zk-SNARKs to verify the transaction's validity without revealing any underlying data, and there is no discernible on-chain link between the sending and receiving addresses. This can be done using stealth addresses or QR-based private links.
• Unshield: This process allows users to withdraw their funds from the private pool back to a public wallet. The destination wallet for the unshielded funds has no traceable connection to the original source wallet, preserving the user's financial privacy. ^[7]

Wallet and Developer SDK

VEILON provides tools for both end-users and developers to interact with its privacy features through a dedicated wallet and a software development kit (SDK). ^[8]

• The Veilon Wallet: A cross-platform wallet for iOS and Android, it is designed for ease of use with a minimal user interface. It offers one-tap functionality for shielding, unshielding, and private transfers. The wallet includes native support for multiple blockchains, including Ethereum, Solana, and Bitcoin. Key privacy features include support for stealth addresses, integrated gasless transactions via a relayer network, and a private transaction history stored locally on the user's device.
• Veilon SDK: A modular SDK is available for developers to integrate VEILON's privacy functionalities into any application, wallet, or protocol. The SDK is available in TypeScript and Rust and is compatible with major web development frameworks. It provides tools to create and verify zk-proofs, query the protocol's Merkle tree, generate viewing keys, and integrate cross-chain and relayer support. This enables developers at DeFi dApps, centralized exchanges, and DAO tooling projects to build privacy features into their products. ^[8]

Proof of Innocence (POI)

The Proof of Innocence (POI) feature is a compliance tool that allows users to prove their funds are not from illicit sources without compromising their privacy. It is a zero-knowledge proof demonstrating that a user's shielded funds do not originate from any known blacklisted or suspicious addresses. ^[9] The system works by maintaining an updated list of blacklisted addresses. When a user needs to prove the origin of their funds, such as when unshielding to a centralized exchange, they can generate a ZK proof. This proof confirms their funds are not from a blacklisted source without revealing their wallet address, transaction history, or balances. The proof is verifiable both on-chain and off-chain. This allows users to interact with regulated platforms while maintaining their identity and financial privacy. ^[9]

DAO Governance

The VEILON protocol is governed by a decentralized autonomous organization (DAO), allowing the community to direct its evolution. Key decisions, such as protocol upgrades, fee adjustments, and new chain integrations, are made through on-chain governance. ^[10]

• Participation: To participate in governance, users must stake the native VEILON token. This requirement ensures that voters have a vested interest in the protocol's long-term success.
• Voting Process: The governance process includes proposal creation by any user with a minimum stake, a voting period, and an execution timelock for passed proposals to allow for community review before implementation.
• Private Voting: The governance model supports shielded voting, which allows participants to vote on proposals without publicly linking their wallet addresses to their decisions.
• Token Utility: Beyond governance, the native token is used for paying protocol fees, accessing certain compliance features, and rewarding ecosystem contributors like relayers and DAO participants. ^[10]

Compliance Tools

VEILON offers a suite of optional, modular compliance tools designed for businesses, institutions, and other regulated entities that require adherence to legal or regulatory frameworks. These tools are designed to be non-invasive and are not required for standard users. ^[11] The compliance toolkit includes:

• API Integrations: The protocol supports integrations with leading compliance service providers like Chainalysis and TRM Labs, enabling functions such as origin tracking and blacklist checks on a pay-per-use basis.
• View Keys: Users can grant third parties, such as auditors, read-only access to specific sets of their transaction history without compromising their private keys.
• Proof of Innocence (POI): As a core compliance feature, POI can be integrated to automatically verify that funds are not linked to blacklisted sources in a zero-knowledge manner. These features are designed on an opt-in basis, ensuring that privacy remains the default setting for all users. ^[11]

Ecosystem

The VEILON ecosystem is designed as a multi-network privacy layer compatible with a broad range of blockchains. It is stated to be ready for integration with EVM networks such as Ethereum, Polygon, Arbitrum, and BNB Chain, as well as non-EVM networks like Bitcoin and Solana. This cross-chain capability is intended to provide a unified privacy solution across the wider Web3 landscape. ^{[1] [3]}

The ecosystem targets several key participant groups. DeFi Participants can use the protocol to engage in activities like swapping, lending, and yield farming with enhanced privacy, protecting their strategies from public scrutiny. Developers can leverage the platform's SDKs and tools to build new privacy-preserving dApps or integrate confidentiality features into existing applications. Governance Users participate in the protocol's DAO to influence its development and direction. The ecosystem also caters to Institutions and High-Net-Worth Individuals (HNIs) who require confidentiality for large-scale capital movements, treasury management, and asset protection. ^{[1] [3]}

Use Cases

The protocol is designed to support a variety of applications where financial privacy is a key requirement.

• Executing confidential transactions and shielding everyday wallet activity from public view.
• Engaging in private DeFi activities, including swapping, lending, and earning, without exposing trading strategies.
• Protecting DeFi traders from front-running bots by obscuring transaction details.
• Integrating privacy features directly into new or existing dApps using the developer toolkit.
• Providing auditors or regulators with view-only access for compliance purposes without full disclosure.
• Proving non-interaction with sanctioned or suspicious addresses through the Proof of Innocence system.
• Conducting institutional stealth capital movements and managing corporate treasuries privately.
• Protecting assets for high-net-worth individuals.
• Maintaining confidentiality in gaming and NFT transactions.
• Facilitating private token launches and managing confidential vesting schedules.
• Participating in the protocol's decentralized governance through the DAO. These use cases demonstrate the protocol's aim to serve individual, developer, and institutional needs for on-chain privacy. ^{[1] [3]}

Architecture

VEILON's architecture is described as zk-native, indicating that zero-knowledge proofs are a foundational component of its design. The protocol is built upon several core technological pillars that work together to provide privacy. Zero-Knowledge Circuits are used to generate cryptographic proofs that validate transactions without revealing sensitive underlying data, such as amounts or participants. The system employs Stealth Addresses to obscure the on-chain link between the sender and receiver, making it difficult to trace the flow of funds. ^{[2] [3]}

Transactions are processed by a Decentralized Relayer Network, which helps to decouple the sender from the transaction itself, further enhancing privacy by breaking the direct on-chain connection. The protocol uses a Merkle Tree to efficiently manage and verify shielded commitments, which represent users' private balances. All of the protocol's logic is enforced by Smart Contracts deployed on the supported blockchains. This technical stack is complemented by Encrypted Transaction Layers that add another level of protection for on-chain activities. ^{[2] [3]}

The user interaction with this architecture follows a four-step process. First, a user performs a Setup by launching a private address through the VEILON wallet. Second, the user makes a Deposit by shielding assets from a supported public chain into their private balance. Third, the user can Transact confidentially, using encrypted balances and zero-knowledge proofs to send or swap assets. Finally, the user can Engage with DeFi protocols and dApps while maintaining the privacy of their financial history. ^[1]

Revenue Generation

VEILON generates revenue through a series of protocol fees collected from its various services. These fees are directed to the DAO treasury, which funds ongoing development, rewards ecosystem contributors, and supports the overall growth of the protocol.

Treasury Growth and DAO Revenue Flow

All protocol revenues, including those from fees, relayers, snipers, and APIs, are routed to the Veilon DAO Treasury. The DAO governs the allocation of these funds, which are used for token buybacks, community grants, liquidity provider incentives, and developer rewards. This model is designed to ensure the protocol remains decentralized and self-sustaining through community-led reinvestment. ^[12]

Shielding and Unshielding Fees

A small protocol fee is collected each time a user shields assets into the private system or unshields them back to a public chain. This fee is transparent, non-custodial, and can be configured by the DAO. The revenue generated from these fees is routed directly to the Veilon DAO treasury to support the ecosystem. ^[13]

Private DEX Swap Fees

The Veilon Private DEX charges a minimal swap fee for every private token swap executed through its shielded router. This fee serves as a primary revenue source for the protocol. The collected revenue is directed to the treasury and can also be used to provide optional rewards to relayers who facilitate the transactions. Fees may be split between the treasury, relayers, and liquidity incentives. ^[14]

Private Sniper Execution Fees

A premium execution fee is applied to trades made using the Veilon Sniper tool, which allows traders to anonymously acquire newly listed tokens. This fee is set by the DAO as either a percentage or a fixed gas equivalent and compensates for the custom routing, monitoring, and relayer overhead required. This revenue stream is tied to time-sensitive activities from high-volume users and contributes to the DAO treasury. ^[15]