Privacy-Focused DeFi Platform Cloak Protocol Launches CLOAK Token Presale

While the core of DeFi is to promote decentralization, the blockchain trilemma has poisoned many of the current DeFi systems with centralized aspects that pose security issues for decentralized finance.

Aiming to solve this issue is the Cloak Protocol, a new DeFi protocol that recently launched its $CLOAK token presale. It is set to revolutionize decentralized finance with secure, anonymous Ethereum-based transactions using zero-knowledge proofs. 

Centralization – Removing Anonymity From Blockchain Transactions

One of the main reasons blockchain technology emerged was to provide financial independence. But since the old system was still based on legacy fundamentals, the blockchain trilemma emerged, forcing even the most innovative cryptocurrency project to take a centralized route.

That path has KYC requirements, which remove anonymity from transactions. Alongside the recent issues with centralized exchanges, including the collapse of FTX and proof of reserves concerns with Crypto.com, many in the industry are now looking for more decentralized solutions once again – ones that have a strong focus on privacy. 

Cloak Protocol Focuses On Privacy

Cloak Protocol is a novel new DeFi project that aims to resolve the privacy issues plaguing the current DeFi ecosystem by using tech solutions. It implements three strategies to make that happen: 

Zero Knowledge Proofs 

The Cloak Protocol platform uses a zero-knowledge proof protocol to secure transactions. This enables Cloak to generate a random hash whenever a user seeks to transfer assets and ensure that the transfer is correct without needing additional information. This minimalistic approach can be easily verified by the network. That way, parties don’t need to reveal their identities during the transaction process. 

Partial Deposit and Withdrawals

Instead of opting for one large transaction, the Cloak protocol employs partial deposits. This form of partial deposits and withdrawals prevents third parties from tracking the asset’s movements. That further protects the identities of individuals or institutions involved in that transaction. 

Governance Token 

Cloak Protocol is completely decentralized, governed by a DAO powered by a governance token of the same name – CLOAK. Users who stake CLOAK token can earn a share of the profits from platform transactions. Furthermore, this staked governance model aligns the user’s interest with that of the network – which preps Cloak protocol for growing further. The same staking attribute also keeps the platform secure. 

These features are implemented in conjunction with other benefits like low fees and instant transactions. The official whitepaper of the project states that one needs only to pay 0.5% for deposits, and for withdrawals, there is no fee involved. 

By implementing governance to keep decentralization alive, using the Ethereum network to ensure scalability, and implementing zero proofs protocol to ensure privacy and security, the Cloak protocol could solve issues related to blockchain trilemma. 

Cloak Protocol Presale Launched 

2023 has been one of the best years for crypto presales, making people aware of the most innovative new cryptocurrency projects created to acknowledge and resolve the long-standing issues of blockchain. 

Cloak Protocol, too, is one of the standout presale projects among DeFi tokens this year. A multi-staged presale has already been announced, with the stage-1 price set at $0.0393 and the listing price being $0.0986. That means those who invest now have the potential to 2x their investment by the time the listing day arrives. 

Conclusion

DeFi projects have become necessary as traditional financial models continue to face issues like rising inflation and over-reliance on centralization. Cloak Protocol aims to enhance DeFi by focusing on an innovative privacy model that can be implemented while aligning users’ and the platform’s interests. 

To become part of this novel project, visit cloakprotocol.io today.