Avail Launches ShieldTX to Block Copy-Trading Bots on Hyperliquid

Avail Deploys ShieldTX for Hyperliquid Traders

Avail launched ShieldTX on Tuesday, deploying a zero-knowledge privacy tool built to open each perpetual futures position on Hyperliquid through a separate, unlinkable wallet. Public blockchain transaction records confirm that the product aims to break the transaction trail exploited by automated copy-trading bots that shadow successful traders. On-chain transparency on Hyperliquid exposes wallet activity to any script, forcing large traders to suffer execution slippage as parasitic bots pile into the same positions.

The system requires traders to deposit USDC into a vault deployed on Arbitrum to establish a shielded balance. From that pool, ShieldTX spins up fresh Hyperliquid accounts on demand for every individual trade. The direct on-chain link between the trader funding wallet and the open position disappears entirely. Order execution still occurs natively on Hyperliquid's central limit order book, meaning liquidity remains unchanged.

Zero-Knowledge Architecture Powers Shielded Execution

Technical documentation published by Avail indicates that the protocol runs on the Nightshade zkAppchain. This setup utilizes a commit-first, prove-later architecture that settles transactions through Arbitrum. The system records user actions immediately before generating cryptographic proofs to verify validity afterward. Zero-knowledge cryptography confirms trade legitimacy without leaking the underlying capital source to public observers.

Traders utilizing ShieldTX can access up to 40x leverage across all Hyperliquid perpetual markets. Fee structures charge 5 basis points of notional value per trade, alongside a $1 opening fee and roughly $2 for closing positions into external wallets. Early internal data released by Avail claims these costs can be offset by avoiding up to 25 basis points in negative price impact caused by bots.

Beta Volume Reaches $2.5Min Testing

Private beta deployment metrics released by Avail show that ShieldTX processed over $2.5M in total trading volume prior to public rollout. Market participants targeted by the tool include professional funds and institutional desks handling position sizes large enough to trigger severe execution slippage. Traders without copycats gain no functional benefit from the protocol, leaving them with an added cost and a privacy layer.

Open questions remain regarding bot adaptation and overall liquidity depth inside the shielded pool. Sophisticated operators may soon analyze timing patterns or deposit behavior to reconnect transaction dots. Small beta volumes indicate that the crowd size remains limited, though broader adoption could reduce individual footprint visibility on public order books.