Shielded Yield

One of the key best practices when using the Shielder is to stay in the privacy pool for some period of time before moving the funds out of it. Ideally, you should wait random time intervals between the Shielder transactions, and never withdraw all at once the same amount that you deposited.

Shielded Yield enables earning yield on your assets while remaining in the privacy pool.

How it works?

The assets are deposited to a yield-generating protocol in exchange for a yield-bearing tokens (a.k.a shares). Instead of shielding the assets directly, Shielded Yield enables shielding the yield-bearing tokens.

Although the whole process can be abstracted away, here is what happens under the hood:

• Deposit assets (e.g. USDC) in a yield generating protocol in exchange for shares.

• Shield your shares.

• Wait some time to generate yield and gain privacy.

• Withdraw shares from Shielder (ideally, different amount than you shielded, to preserve privacy).

• Redeem shares for assets.