Nillion plans encrypted markets on Ethereum mainnet to hide onchain orders, strategies, and agent logic

Nillion's "encrypted markets" launch a primitive called a covenant: an encrypted onchain instruction using threshold key sharing (Boneh–Franklin IBE) that reveals itself only when a data-feed condition is met. V1 hits Ethereum mainnet in early October, supporting price/time conditions on six assets, but has no cancel, is readable before execution, and Ethereum only. The author cites public-order costs: ~36% of perp DEX volume rests on visible books, ~$683m in exposed fees, and public liquidation maps enabling cascades like Oct 10's ~$19b. Nillion's history includes a 2025 market-maker dump and an 87% drawdown; risks include node collusion, latency, ~290m pending NIL unlocks, and venue competition from Zama, Silhouette, and Aster.

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