Bitcoin's Tariff Resilience gm Bankless Nation,
Crypto investors cautiously praised BTC's price stability amid the week's stock market chaos. Today's Issue ⬇️ - ☀️ Need to Know: BTC Resilience
Bitcoin holds on as Wall Street flails. - 🗣️ Tactic: Privacy Pools
Exploring compliant onchain privacy.
p.s. Bankless Citizens: Complete the Bankless x Uniswap Labs survey and earn $10 USDC!
Sponsor: Mantle — Mantle is building the largest sustainable hub for onchain finance. . . . NEED TO KNOW BTC Tariff Resilience - 🚀 Ethereum Devs Set May 7 Target for Pectra's Mainnet Deployment. After a somewhat rocky testing period, Ethereum developers are ready to set a date for Pectra's launch.
- 👻 Aave Creator Avara Launches Lens Chain L2. Decentralized social platform Lens launched its layer 2 network on mainnet Friday.
- 🎥 Memecoin launcher Pump.fun Relaunches Livestreaming Feature. After a disastrous initial rollout, Pump.fun is giving livestreaming another go with a less forgiving moderation policy.
📸 Daily Market Snapshot: Stocks continued to crater Friday as investors wondered aloud whether Trump would stick to his guns or walk back his tariff plans. Meanwhile, crypto investors are cautiously optimistic as BTC continues to weather the volatility in surprisingly stable fashion. | Prices as of 3pm ET | 24hr | 7d |  | Crypto $2.69T | ↗ 2.7% | ↘ 1.1% |  | BTC $83,985 | ↗ 2.1% | ↗ 0.4% |  | ETH $1,807 | ↗ 0.8% | ↘ 4.0% | . . . TACTIC Exploring Compliant Onchain Privacy with Privacy Pools Over the past month, I’ve covered two emerging privacy tools on Base: - Fluidkey for stealth address unlinkability
- Veil for full deposit–withdrawal untraceability
But what if you want privacy on Ethereum mainnet and a solution that provides compliance guarantees? That’s where 0xbow’s Privacy Pools come in. This new Ethereum-based protocol lets you deposit and later privately withdraw ETH or ERC-20 tokens while proving your funds didn’t come from bad actors. Inspired by the 2023 paper Blockchain Privacy and Regulatory Compliance: Towards a Practical Equilibrium, co-authored by Vitalik Buterin and others, Privacy Pools strikes a middle ground between total anonymity and total transparency, and now it's live for use. The big idea? Use zero-knowledge proofs to demonstrate you're part of a “clean” deposit set without revealing which deposit is yours.
🧠 How 0xbow Privacy Pools workAt the core of 0xbow’s system is the idea of unlinking deposits and withdrawals using ZK proofs, so you can move assets privately while guaranteeing they are not illicit. The process—which involves no doxxing, no KYC, and no bad actor co-mingling—goes like this: - You deposit ETH or tokens into a Privacy Pool.
- The 0xbow Association Set Provider (ASP) vets the deposit.
- If you pass the vetting, you can privately withdraw to an address of your choosing, e.g. a new one you've spun up.
The ASP curates a list of “approved” deposits in real time, allowing you to prove your transaction came from a compliant set, without revealing your individual wallet history. 🛡️ What is the ASP?The ASP is the compliance engine here. It curates a list of approved transactions in real time, allowing you to prove your transaction came from a compliant account without revealing your individual wallet history. Specifically, this system vets deposits using onchain analysis tools, from which it maintains a Merkle tree of pre-approved activity, i.e. the Association Set. At this point, users can commit a ZK proof to prove their deposit is included in the Association Set. The ASP also supports dynamic updates, so previously approved deposits can be revoked if necessary. Why does this matter? Because some onchain privacy tools either ignore compliance or have tried to bolt it on afterward. 0xbow has built it in from the start as opt-in, transparent, and programmable. The ASP ensures: - You’re not mixing with sanctioned or flagged wallets.
- You can prove compliance without revealing your identity.
- Plus, you retain full control since the ASP can’t move your funds or stop a public exit via ragequit.
Additionally, because the ASP system is open-source, any protocol or jurisdiction can run their own version. This makes Privacy Pools a plug-and-play privacy compliance layer for any builders working around DeFi. 🛠️ How to use 0xbow Privacy Pools1️⃣ ConnectGo to privacypools.com and connect your Ethereum wallet. 2️⃣ Create Your AccountOn the landing page, click “Create Account.” This generates the cryptographic keys that will power your private interactions in the pool. Here, it's imperative that you backup your recovery phrase securely. This phrase underpins your 0xbow account keys that will be required for all withdrawals, so if you lose it, your deposits will become unrecoverable. Moreover, do not enter your regular wallet's recovery phrase into the Privacy Pools app. Only ever use the 0xbow account(s) you create to interact with the platform. 3️⃣ DepositHead to the Deposit tab, then input your desired amount (0.1 ETH minimum currently) and press "Deposit" to confirm the transaction. For ERC-20s, approve the token first. Behind the scenes, your deposit is automatically submitted to the ASP. If it’s from a clean source, it will be added to the Association Set, allowing for future private withdrawals. 4️⃣ Withdraw When you're ready, go to the Withdraw tab and input the address you want to withdraw to. The app generates a ZK proof in your browser to prove your deposit’s legitimacy without revealing which one was yours. Then just complete the withdrawal confirmation in your wallet. For extra privacy, consider routing your withdrawal through a relayer to hide your IP and avoid paying gas from your real wallet. 5️⃣ Ragequit (if needed)If your deposit is excluded or rejected by ASP, you can ragequit and publicly reclaim your funds. Just follow the simple withdrawal instructions on the frontend, and you'll be on your way. 🕵 The Big PictureWith regulators watching and privacy still essential, 0xbow offers a compelling middle path. Privacy Pools prove responsible anonymity onchain is possible without the honeypots of centralized KYC and without mixing with shady deposits. For protocols, Privacy Pools + ASP can act like a “programmable perimeter” to limit access based on verifiable onchain behavior. For users, it’s a powerful tool to move freely and privately on Ethereum, all while staying in bounds with regulators. More tools like this, please!
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