Key Takeaways

• Aster CEO confirms its privacy-focused Layer-1 is in the testing phase.

• The chain uses zero-knowledge proofs to balance transparency with privacy.

• Originally a multichain DEX, Aster is evolving into a Hyperliquid rival.

The next wave of competition in decentralized derivatives may be just around the corner.

Aster CEO Leonard Aster confirmed this week that the project’s long-awaited privacy-focused Layer-1 blockchain is now in internal testing and will soon roll out publicly.

The new Aster Chain is designed to address some of the most pressing problems in decentralized finance (DeFi), particularly in derivatives trading—where transparency, custody, and execution speed often clash with the need for user privacy.

Aster Chain leverages zero-knowledge proofs (ZK-proofs) to ensure that trades can be verified on-chain without exposing sensitive details like order sizes or profits and losses.

“We are internally testing it,” Aster said in a recent interview.

“But the way we designed it, we want to preserve trade privacy while ensuring trade verifiability. So you can verify the trade happening, but others can’t see the key details.”

This dual approach could reduce market manipulation and front-running, two of the most common concerns plaguing institutional and high-volume traders in the DeFi space.

Aster DEX originally launched as a multichain liquidity aggregator, connecting to BNB Chain (BNB), Ethereum (ETH), Solana (SOL), and Arbitrum (ARB).

Over time, its ambitions have expanded beyond aggregation into building a dedicated Layer-1 chain.

The shift reflects broader market dynamics: derivatives now dominate trading volumes in crypto, with perpetual futures and tokenized assets increasingly moving on-chain.

By designing a chain specifically for this use case, Aster is aiming to carve out a niche that competitors like Hyperliquid—currently a leader in decentralized perpetuals—have yet to fully capture.

Unlike Hyperliquid, which emphasizes transparency and speed, Aster Chain is betting on privacy plus compliance as its differentiator.

The system allows verifiable but non-public trades, targeting institutional players who require anonymity.

The project has already secured backing from YZi Labs (formerly Binance Labs), PancakeSwap, and even public support from Binance co-founder Changpeng Zhao (CZ)—endorsements that have fueled its rapid rise.

If successful, Aster Chain could capture a slice of the $2 trillion derivatives market, positioning itself as one of the first Layer-1s purpose-built for on-chain perpetuals with institutional-grade privacy.

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