There is a concept you must know: Hedger. In the Ethereum ecosystem, this represents a new technological breakthrough—through the combination of homomorphic encryption and zero-knowledge proofs, smart contracts can finally achieve "audit-level privacy protection."

What does this mean? In traditional DeFi, all transactions are transparent, which leads to front-running and arbitrage issues. After integrating these two cryptographic technologies, users can hide sensitive data while still enabling full verification. On-chain auditing remains effective, but your strategies, balances, and transaction details can be kept confidential.

This step is crucial. As DeFi moves from wild growth to institutionalization, privacy protection has become an inevitable demand. Traditional finance (TradFi) already has this system in place, and now it can be implemented on-chain. Although the technical barrier is high, it breaks the dilemma between privacy and verifiability on public blockchains—this is not only an engineering advancement but also a paradigm shift.