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THE FINANCEBASE List yours

Guide

How to Enable and Use Starknet Wallet Privacy for DeFi Transactions

By TheFinanceBase Team 12 min read

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To use privacy on Starknet, open a wallet that supports STRK20 privacy (the June 2026 launch specifically names Ready and Xverse), fund your Starknet account, shield a supported ERC-20 asset, and then use a private swap, transfer, or DeFi application that supports the STRK20 Wallet API or an equivalent integration. Unshield when you need a normal public balance again.

STRK20 does not make every Starknet transaction private. Deposits, withdrawals, pool interaction, wallet timing, and other onchain metadata remain observable. What the privacy pool hides is the in-pool sender, receiver, and amount, subject to the wallet and application implementation.

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What Starknet wallet privacy actually does

STRK20 is Starknet’s privacy framework for ERC-20 assets. It works at the wallet and privacy-pool layer rather than by replacing or modifying the underlying ERC-20 contract. A supported wallet can turn a public token balance into a private balance controlled by the same account, then spend that private balance without publishing the in-pool sender, receiver, or amount.

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The first live user experience announced by Starknet in June 2026 names Ready and Xverse as the wallets through which users can access shielding, private transfers, private swaps, and unshielding. Availability can change by wallet release, network, and asset, so check the current wallet interface before sending funds.

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Privacy is selective, not absolute. The public chain can still show that funds entered a pool, left it, or interacted with the pool. Wallet addresses, timestamps, gas payments, application calls, and the timing of a deposit and withdrawal can also provide linkage clues. Think of STRK20 as hiding details inside a pool, not as making your entire Starknet identity invisible.

What you need before starting

  • A Starknet-compatible wallet with current STRK20 controls. Ready and Xverse are the explicitly named launch wallets; confirm that the version you install supports the asset and network you intend to use.
  • A Starknet account with enough of the chosen ERC-20 token for the transaction and enough Starknet gas for the wallet’s current fee requirements.
  • A way to move funds to Starknet. Starknet’s setup guidance describes using StarkGate from Ethereum and emphasizes selecting Starknet as the destination network. Confirm the bridge’s current token support and destination before approving a transfer.
  • A private-capable application for the action you want to perform. A normal Starknet exchange, lending market, or vault does not become private merely because it runs on Starknet.
  • A clear understanding of what will remain public. Read the wallet’s transaction preview and the application’s privacy documentation before signing.

Choose the asset carefully

STRK20 is designed for ERC-20 assets, but a wallet or application may support only a subset. The June 2026 private-USDC announcement describes USDC on Starknet as shieldable, privately transferable, and usable in supported DeFi flows without changing the standard USDC ERC-20 contract. That announcement does not establish universal support for every token, pool, or protocol. Verify the exact token address and network in the wallet rather than relying on a ticker symbol alone.

How to enable privacy in a Starknet wallet

There is no account-wide privacy switch that changes every transaction. You enable privacy by using the wallet’s STRK20 shield action for a supported asset. The following sequence reflects the live user flow; labels can differ slightly between wallet versions.

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  1. Open or install a supported wallet. Use a current Ready or Xverse build that shows Starknet and STRK20 features. Create or import the Starknet account using the wallet’s standard recovery process. Never enter a recovery phrase into a website, chat, or support form.
  2. Confirm the network and token. In the wallet’s network selector, choose Starknet. Check the token contract, decimals, and balance that you intend to shield. Do not send Ethereum-network funds to a Starknet address without a supported bridge or transfer route.
  3. Fund the public Starknet balance. If your tokens are on Ethereum, use the currently supported StarkGate flow or another route explicitly supported by the wallet. On the bridge screen, select Starknet as the destination and review the token, amount, recipient account, and estimated fees before confirming.
  4. Start the shield action. Open the asset, choose the wallet control labeled Shield (or its current equivalent), enter the amount, and review the approval and deposit transactions. Shielding moves the public ERC-20 into the privacy pool and creates a private balance controlled by your wallet.
  5. Approve and wait for confirmation. The launch description calls shielding one-click and near-instant in that experience. Actual confirmation and proving time depend on the wallet, network conditions, and asset. Keep the wallet open until it reports completion; do not submit a second shield because the first screen appears slow.
  6. Verify the private balance. Switch to the wallet’s private or shielded view and confirm the note or private balance is present. A public block explorer may show the pool deposit but will not display the private balance in the same way as a normal ERC-20 account balance.

Shielding is not a token conversion

The public ERC-20 contract remains the asset’s contract. Shielding deposits that asset into a STRK20 privacy pool and represents your claim as an encrypted note. You are not receiving a different publicly tradable token, and a wallet that supports ordinary ERC-20 transfers does not automatically support private notes.

How STRK20 privacy works under the hood

When you shield tokens, the pool records a deposit and the wallet creates an encrypted note, commonly described as a UTXO-style balance. A private transfer spends an existing note and creates one or more new notes for the recipient and any change. The wallet keeps the note data and keys needed to spend it.

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Every private transaction carries a zero-knowledge STARK proof. The proof is verified onchain to establish that the notes are valid, have not already been spent, and conserve value, without revealing the sender, receiver, or amount inside the pool. The chain therefore verifies the accounting rules while the sensitive transaction fields remain hidden.

Entry and exit are different. A deposit into the pool and a withdrawal back to a public ERC-20 balance are visible events. Pool interaction itself is visible as well. Someone observing the chain can know that an address used the pool, even though the encrypted in-pool movement is not exposed as a conventional transfer.

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Using a private transfer or swap

Private transfer

  1. Open the wallet’s private or shielded balance and select Send or Transfer.
  2. Enter the recipient’s privacy-compatible address or payment identifier exactly as the wallet requests. Confirm whether the recipient must be using the same wallet ecosystem or a specific note format.
  3. Review the amount, estimated gas, and any proving or service status shown by the wallet. The recipient and amount should not appear as ordinary public ERC-20 transfer fields, but the pool interaction and gas payment can remain visible.
  4. Sign once, then wait for the wallet to confirm that the new note was created. Do not reuse a note or retry blindly if the interface is still proving.

Private swap

A private swap requires more than a shielded balance. The swap application must understand STRK20 notes and submit the appropriate wallet requests. Connect only to an application that explicitly documents private swaps and the assets it supports.

  1. From the private balance view, choose the supported swap application or use its Connect Wallet control.
  2. Check the input and output assets, quoted rate, minimum received, liquidity, slippage setting, and whether both legs remain private. Some interfaces may shield an input but return the output publicly.
  3. Read the privacy disclosure for deposits, withdrawals, pool calls, and any public router or settlement contract. Record which parts are visible before signing.
  4. Approve the wallet’s shield, transfer, and swap requests in the order presented. Verify the resulting private note and output amount in the wallet rather than assuming a public explorer balance will update.

How to use private DeFi applications

A DeFi protocol must deliberately integrate privacy. The documented route for most applications is Starknet’s Wallet API. A dapp asks a privacy-enabled wallet to shield, transfer, or withdraw; the wallet manages keys, encrypted notes, proving, and transaction submission. A connection prompt by itself is not evidence that a protocol supports this flow.

For broader DeFi actions, an application can combine the Wallet API with an anonymizer contract. The pool invokes that contract atomically so a private note can participate in a swap, lending action, borrowing transaction, or vault operation without exposing the in-pool sender and amount in the usual way. The protocol still has to implement the contract, define supported assets, and explain which calls remain public.

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Evaluate a protocol before signing

Question Why it matters
Which assets can be shielded and spent? Token support is application-specific; a protocol may support USDC but not STRK or another ERC-20.
Which action is private? Swaps, lending, borrowing, and vault deposits may have different integrations. Do not treat one private feature as end-to-end privacy for every action.
Where are deposits and withdrawals visible? Pool entry and exit can link a public address and timing to later activity.
What liquidity and slippage apply? Privacy does not remove price impact, thin liquidity, failed transactions, or liquidation risk.
How long do proving and confirmation take? Wallet and network conditions can affect completion; a quoted “instant” experience is not a permanent performance guarantee.
What fees are charged? Network gas, bridge charges, protocol fees, and any wallet or proving charges can differ by action. Check the live preview rather than relying on an old fee estimate.
What audit and compliance controls exist? A protocol may retain logs, require identification, or support lawful transaction reconstruction even when pool details are hidden publicly.

Private USDC and DeFi strategy

The June 2026 private-USDC announcement presents treasury movements, market-making, and trading strategies as potential uses: a participant can shield USDC, move it privately within the pool, and use supported DeFi integrations without altering the standard ERC-20 contract. That benefit applies only to the integrated path. If the protocol returns funds to a public address or uses a public router, the resulting transaction can reveal strategy timing and amounts.

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How to unshield and return to a public balance

  1. Open the wallet’s private balance and select Unshield, Withdraw, or the current equivalent.
  2. Choose the asset and amount, then specify the public Starknet account that should receive the ERC-20 tokens.
  3. Review the withdrawal destination, network, amount, and displayed fee. A withdrawal is an observable pool-exit event.
  4. Sign and wait for the wallet to show the public balance. The June 2026 launch description characterizes unshielding as one-click, with no waiting or hidden charge in that launch context; current fees, timing, and wallet disclosures may differ.
  5. Check the public balance in the wallet or a Starknet explorer after confirmation. Do not assume a private note has become spendable publicly until the withdrawal is finalized.

What other wallets and Ledger can—and cannot—do

Wallet or device What is established What you must verify
Ready Named in Starknet’s June 2026 launch for the initial STRK20 experience, including shielding, private swaps, private transfers, and unshielding. Current network, token list, Wallet API support, and the specific DeFi app you plan to use.
Xverse Also named in that launch for the initial STRK20 experience. Current Starknet release, supported assets, and private DeFi integrations.
Argent Documented by Starknet’s setup guidance as an established general Starknet wallet. The cited material does not establish that it exposes the same STRK20 controls; confirm in the current app before funding a privacy workflow.
Braavos Documented as an established general Starknet wallet. Confirm current STRK20 shielding, private-note handling, and application support.
Ledger Optional hardware used to sign transactions through a compatible Starknet wallet. Exact device model, firmware, wallet compatibility, and whether the connected wallet supports the STRK20 operation. Ledger itself does not create shielded balances.

Starknet’s setup FAQ says Ledger users typically sign Starknet transactions through compatible wallets such as Argent, Braavos, or Ready. That makes Ledger a key-management and signing choice, not a privacy feature. Buying a hardware device will not add STRK20 controls to a wallet that lacks them.

Privacy limits and practical linkage risks

  • Public entry and exit: Deposits and withdrawals identify the pool interaction and can be correlated by amount, timing, or destination.
  • Address metadata: The wallet address that funds gas, calls a public contract, or receives an unshielded output may connect activity to you.
  • Timing patterns: A deposit immediately followed by a withdrawal, or a repeated schedule, can reduce the anonymity set even when note contents are encrypted.
  • Application visibility: A DeFi protocol can see the information required to execute its own action and may keep offchain logs or compliance records.
  • Operational mistakes: Sending a shielded output to a public address, reusing addresses, or combining private and public funds in a recognizable pattern can reveal relationships.
  • Coverage gaps: If one leg of a swap, loan, or vault action is unsupported, the unsupported leg may be public.

Starknet describes the pool as “not a mixer.” The design is a selective privacy layer with accountable entry and exit, not a promise that all participants become indistinguishable or that every historical link is erased.

Legal access and auditability

The launch material states that a designated third-party auditing entity can reconstruct a specific user’s transaction history after a legitimate legal request, without exposing unrelated users or the wider pool. Treat that as the project’s stated accountability design, not as a universal guarantee: wallets, applications, jurisdictions, and future implementations may apply different procedures. If you need privacy for a regulated treasury or business, document who can authorize disclosure and retain the records required by your jurisdiction.

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Troubleshooting common failures

The Shield button is missing

Confirm that you are on Starknet, that the asset is an ERC-20 supported by the wallet’s STRK20 implementation, and that the wallet is updated. A general Starknet wallet may not expose the same controls as Ready or Xverse. Do not attempt to imitate shielding by sending tokens to an unverified contract.

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The bridge deposit has not arrived

Check that Starknet was selected as the destination, the token is supported on both sides, and the source transaction is finalized. Use the bridge and wallet status pages rather than resubmitting. A bridge delay is separate from STRK20 proving.

The private balance is zero after shielding

Wait for the wallet to finish note creation and proving, then refresh the private-balance view. Verify that you are viewing the same account and network used for the deposit. If the public deposit is confirmed but the private note is not displayed, contact the wallet’s official support channel with the transaction hash; never share your recovery phrase or private key.

A DeFi app connects but rejects the transaction

Connection is not integration. Check whether the app supports the STRK20 Wallet API or an anonymizer-contract flow for the exact action and token. A protocol may support private transfers but not private swaps, lending, borrowing, or vaults.

The transaction appears public

Review whether you performed a deposit, withdrawal, gas payment, public approval, or unsupported protocol call. Those events can be visible by design. A normal ERC-20 transfer shown in the explorer usually means that leg was not private, not that the privacy proof failed.

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Ledger signing does not work

Check the Ledger model and firmware, the connected wallet’s Starknet support, account type, and the operation being signed. Update only through official wallet and device software, and confirm that the wallet explicitly supports STRK20 requests before moving funds.

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A safe operating checklist

  • Verify the wallet name, official app, Starknet network, and token contract before funding.
  • Test with a small amount before shielding a treasury or executing a large trade.
  • Keep public gas funds separate from the amount you intend to shield, while recognizing that gas activity may still be linkable.
  • Read the protocol’s privacy and compliance documentation before connecting a wallet.
  • Record whether the action is a shield, private note transfer, anonymizer-contract call, or public withdrawal.
  • Review slippage, liquidity, liquidation terms, and fees independently of privacy claims.
  • Back up wallet recovery material offline and never disclose it to support staff.
  • Recheck wallet release notes, supported assets, Wallet API versions, and the target application’s documentation immediately before a transaction.

Developer perspective: integrating private DeFi

For a new dapp, Starknet’s documented starting point is the Wallet API. The wallet performs key management, note handling, proving, and submission, while the application requests the required shield, transfer, or withdrawal operation. For broader composability, an anonymizer contract can be invoked atomically by the pool so private funds reach a DeFi action without exposing the in-pool fields in a conventional transfer.

Starknet.js documentation identifies WalletAccountV6 as the new-dapp class with STRK20 support and states that Ready and Xverse support the Wallet API as of August 2026. Pin and verify the library version before publishing or deploying code; API classes, wallet capabilities, and required transaction formats can change.

Builders should document supported assets, private and public legs, failure recovery, proving expectations, fee handling, and any audit or disclosure process. A privacy label without those details can mislead users into assuming that an entire protocol is private.

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Bottom line for DeFi users

Use Ready or Xverse, fund the correct Starknet account, shield a supported ERC-20, and choose only a DeFi application that explicitly supports STRK20 through the Wallet API or an anonymizer-contract integration. Private notes and zero-knowledge proofs hide in-pool sender, receiver, and amount details; they do not hide deposits, withdrawals, gas, timing, or every protocol call. Ledger can protect signing keys when the connected wallet supports it, but it does not enable privacy by itself. Because wallet support, token coverage, fees, and APIs are changing, verify the current wallet and application documentation immediately before signing.

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