Borrow and Manage RiskWithout Exposing Your Numbers.
Walnut keeps collateral, debt, and liquidation-sensitive values encrypted by default while still enabling a complete lending workflow.
Protocol View
Encrypted Position
Collateral
Debt
Health FactorSAFE
1.85
LTV
80% cap
Auction
sealed bid
Wallets
ENS linked
* Powered by Fhenix CoFHE
Private lending that actually explains what Walnut does.
Encrypted collateral, private debt positions, and sealed-bid liquidations on Fhenix.
Public Ledgers Expose Your Positions.
Every borrow broadcasts your collateral, debt, health factor, and liquidation threshold to every MEV bot on the network.
My liquidation was frontrun by a bot that watched my health factor
I was at 1.08 health factor on Aave. Before I could add collateral, a bot liquidated me at max penalty. It had been watching my position for days. Is there any way to borrow without your risk level being public?
Can a counterparty see my full collateral position on Aave?
We're evaluating on-chain lending for a fund. The problem is our entire collateral stack would be publicly visible. Competitors could see our leverage. Compliance won't allow it. Is there any private alternative?
How to hide your borrowing position from other traders?
Every time I take a large borrow, someone seems to know my liquidation threshold and pushes the price there. It's not paranoia — my wallet is public and my health factor is readable by anyone.
DeFi lending is basically broadcasting your financial life to the entire chain
Your collateral, your debt, your risk tolerance, your repayment history — all of it is public. Every analytics tool can profile you. This is the opposite of financial privacy.
My liquidation was frontrun by a bot that watched my health factor
I was at 1.08 health factor on Aave. Before I could add collateral, a bot liquidated me at max penalty. It had been watching my position for days. Is there any way to borrow without your risk level being public?
Can a counterparty see my full collateral position on Aave?
We're evaluating on-chain lending for a fund. The problem is our entire collateral stack would be publicly visible. Competitors could see our leverage. Compliance won't allow it. Is there any private alternative?
How to hide your borrowing position from other traders?
Every time I take a large borrow, someone seems to know my liquidation threshold and pushes the price there. It's not paranoia — my wallet is public and my health factor is readable by anyone.
DeFi lending is basically broadcasting your financial life to the entire chain
Your collateral, your debt, your risk tolerance, your repayment history — all of it is public. Every analytics tool can profile you. This is the opposite of financial privacy.
Quantifying MEV in DeFi Lending Protocols
Research documents over $500M extracted from DeFi users through liquidation MEV. Transparent health factors allow bots to calculate exact liquidation points and execute with precision timing, extracting maximum penalty from borrowers.
On the Privacy of DeFi Position Data
Public on-chain state exposes complete borrower profiles — collateral composition, debt levels, and repayment behaviour. Combined with address clustering, this enables complete financial deanonymization of DeFi participants.
Why Institutions Won't Touch Transparent Lending Rails
Compliance frameworks prohibit deployment of risk books on public infrastructure. Transparent collateral positions create legal, competitive, and regulatory exposure. FHE-based lending is the only viable path for institutional on-chain credit.
$2.3B in institutional capital seeking private lending rails
Funds and family offices are actively evaluating on-chain lending but cannot proceed on transparent protocols. The demand for encrypted lending infrastructure is documented and unmet.
Quantifying MEV in DeFi Lending Protocols
Research documents over $500M extracted from DeFi users through liquidation MEV. Transparent health factors allow bots to calculate exact liquidation points and execute with precision timing, extracting maximum penalty from borrowers.
On the Privacy of DeFi Position Data
Public on-chain state exposes complete borrower profiles — collateral composition, debt levels, and repayment behaviour. Combined with address clustering, this enables complete financial deanonymization of DeFi participants.
Why Institutions Won't Touch Transparent Lending Rails
Compliance frameworks prohibit deployment of risk books on public infrastructure. Transparent collateral positions create legal, competitive, and regulatory exposure. FHE-based lending is the only viable path for institutional on-chain credit.
$2.3B in institutional capital seeking private lending rails
Funds and family offices are actively evaluating on-chain lending but cannot proceed on transparent protocols. The demand for encrypted lending infrastructure is documented and unmet.
What is Walnut?
A confidential lending protocol where your collateral, debt, and liquidation threshold stay encrypted on-chain — while a complete lending workflow still runs. Built on Fhenix CoFHE.
Sealed-Bid Liquidations
Liquidators submit encrypted bids. Walnut privately selects the lowest penalty using FHE computation without revealing any bid publicly. Only the winning liquidator is revealed at settlement.
Borrowers receive the best available liquidation outcome while MEV bots see nothing.
Encrypted Health Factor
Health factor calculations run on encrypted collateral and debt using FHE arithmetic. Liquidation checks execute privately through syncPositionGuardCheck using enclave signatures without exposing user positions on-chain.
No plaintext values are stored or emitted.
Encrypted Credit Scoring
Repayment history stays encrypted while Walnut privately computes credit tiers and borrowing power. Users prove reliability without exposing financial history.
P2P Encrypted Terms
Loan terms including APR, size, and duration remain encrypted between lender and borrower. Third parties never see agreement details before or after settlement.
ENS Wallet Aggregation
Aggregate collateral across multiple wallets under one ENS identity without publicly linking addresses together.
Higher capital efficiency. Zero wallet exposure.
Client-Driven Enclave Decryption Sync
Sensitive protocol actions utilize Client-Driven Decryption Sync. Enclave nodes decrypt variables off-chain, producing secure ECDSA signatures verified on-chain via verifyDecryptResultSafe. Plaintext values exist only during transaction execution.
Powered by Fhenix
Fhenix is confidential computation layer for Ethereum using Fully Homomorphic Encryption (FHE). Instead of creating another isolated blockchain, Fhenix enables encrypted execution across existing EVM ecosystems through its CoFHE coprocessor architecture.
Encrypted Computation
Smart contracts process encrypted data without exposing underlying values.
Confidential Smart Contracts
Application logic, balances, and user interactions remain private by default.
Selective Decryption
Only authorized users or systems can reveal outputs when necessary.
Cross-Chain Confidentiality
Designed to integrate with Ethereum, Arbitrum, Base, and other EVM ecosystems.
Encrypted Input
Data enters the system in encrypted form
FHE Computation
Processing happens on encrypted data without decryption
Encrypted Output
Results remain encrypted, preserving privacy
Protocol Flow
Client-side encryption to enclave-signed decryption synchronization, every step documented with technical precision.
Client-Side Encryption
Your deposit amount is encrypted using FHE in your browser before leaving your wallet.
Submit Transaction
Encrypted collateral calldata is submitted to WalnutLending.deposit() function.
Oracle Valuation
Contract queries Chainlink oracle and adds USD value privately using FHE.asEuint128().
Update Encrypted State
Contract increments _collateral[user] and grants read permissions to user wallet via FHE.allow().
Ready to borrow privately?
Experience confidential lending on Arbitrum Sepolia. Your positions stay encrypted.
Currently live on Arbitrum Sepolia testnet