Questions about private DeFi applications

Can Aztec support private applications for DeFi, such as private exchange tokens or confidential licensing? What does that look like from a user perspective?

Great question! Yes, there people that are already working on this. You can see what they’ve done so far here. There are other teams working on similar things as well. The UX is subject to change as the protocol is not 100% finalized yet, but we are getting close!

What do you mean by private licensing?

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Although Aztec doesn’t have permissionless private shared state, it does have private user specific state. This means interactions with defi contracts are private. but their state might be public.

So many things are possible in this shielded context. moneymarkets, (orderbook) exchanges and so forth. You can even do Sealed-bid auctions and more using a trusted intermediary.

The code itself however is public, if that was a question as well.

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I thank you for your reply!
Your response was incredibly helpful. I had no idea there were already teams working on this. Thank you for sharing the link to their progress.
I meant private licensing as a process that allows for licensing digital assets, keeping the identity of the parties involved, the terms of the license, and other details confidential through the use of blockchain technology and smart contracts.

What are some practical use cases where Aztec’s privacy features will significantly improve current DeFi applications?