Avail launches privacy tool for Hyperliquid traders amid copy-trading cost concerns

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Avail launches privacy tool for Hyperliquid

Highlights

Avail launched ShieldTX for Hyperliquid traders, opening each position via a separate wallet to hinder bot-driven copy-trading.
ShieldTX review of 332,317 Hyperliquid wallets found median copy-trading execution cost at 63 basis points per trade over 30 days.
ShieldTX enables post-trade funds withdrawal and full auditability, with Avail conducting multiple internal and external security reviews.

ShieldTX rollout and study findings

As first reported by The Block, ShieldTX opens each perpetual futures position through a separate wallet, a structure designed to reduce the ability of bots to track publicly visible Hyperliquid wallets and mirror trades within seconds.

In a review shared ahead of the launch, ShieldTX says it examined 332,317 wallets that traded on Hyperliquid over 30 days. The study randomly selected seven traders from the platform's top 100 and then analyzed 25 wallets that appeared to follow each of them.

Potential copy-traders were flagged when they matched a trader's coin and long or short position within 60 seconds at least 10 times during the 30-day period. Anurag Arjun, Polygon co-founder and the executive leading Avail after its 2023 spinout from Polygon, says ShieldTX measured the gap between copiers' fill prices and those of the traders they followed.

Trading impact and compliance features

ShieldTX says it compared price movements during trades that attracted copy-traders with trades that did not, while accounting for coin, trade size and volatility. On that basis, it puts the added execution cost for copied traders at a median of 63 basis points per trade.

After a position closes, proceeds return to the user's shielded balance, allowing funds to be withdrawn or reused. The company says traders still retain access to their full trading history for audits and compliance, while Arjun says Avail has completed multiple internal audits alongside reviews by external security consultants and has a full audit underway.

In our earlier coverage of CTOS Digital’s cybersecurity incident, we detailed the company’s estimate that the breach and related service disruptions could cut net profit by RM12 million and revenue by RM16 million if some services stayed unavailable into late October. We also noted that each additional week of disruption could further weigh on financial performance, as the company worked to restore services and rebuild customer confidence.

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