Penumbra integrates privacy with proof-of-stake through a novel private delegation mechanism that provides staking derivatives, tax-efficient staking, and on-chain governance with private voting. Penumbra connects to the Cosmos ecosystem via IBC, acting as an ecosystem-wide shielded pool and allowing private transactions in any IBC-compatible asset. Users can also swap these assets using ZSwap, a private decentralized exchange supporting sealed-bid batch auctions and Uniswap-v3-style concentrated liquidity. Sealed-bid batch auctions prevent frontrunning, provide better execution, and reveal only the net flow across a pair of assets in each block, and liquidity positions are created anonymously, allowing traders to approximate their desired trading function without revealing their individual beliefs about prices.

IBC: A roadmap for the interchain future
Cosmos is almost defined by IBC, it’s trustless bridging solution, and in this article, Stranglove breaks down its future development.
Aug 29 · 8 min read