Keyring Network Launches zkVerified Markets on Avalanche, Bridging DeFi and Institutional Capital

June 30, 2025 – Keyring Network, in partnership with Euler Finance, Multipli, and Pyth Network, is set to unveil zkVerified markets on the Avalanche blockchain. This innovative initiative addresses a critical challenge in decentralized finance (DeFi): enabling institutions to verify counterparties while maintaining user privacy.

zkVerified Lending Pool: High Returns with Security

The zkVerified lending pool promises impressive annualized yields ranging from 25% to 35%. This is achieved through an 8-14% base yield derived from xUSDC’s delta-neutral strategies, including contango and perpetual arbitrage, significantly outperforming the 2-4% yields typically associated with European Government Bonds.

Utilizing Keyring Connect, zkVerified markets leverage zero-knowledge (ZK) proofs and MPC-TLS technology to authenticate users without compromising their personal information. This development tackles a significant barrier for institutional participation in DeFi: the challenge of verifying counterparties while upholding privacy standards.

Unlocking Institutional Capital in DeFi

Despite DeFi‘s total value locked (TVL) of $113 billion, it pales in comparison to the hundreds of trillions in traditional finance. Institutions have been hesitant to engage due to the conflicting demands for verification and the privacy concerns associated with traditional Know Your Customer (KYC) processes. Unverified markets often expose participants to risks such as manipulation and fraud.

The zkVerified markets create a solution by establishing verified pools where users can demonstrate their eligibility through cryptographic proofs without disclosing their identities. This marks a significant advancement in DeFi, offering institutional-grade access controls that comply with regulations while preserving the core principles of privacy and decentralization.

The Importance of This Collaboration

The zkVerified markets integrate top-tier DeFi infrastructure:

• Keyring Network has developed a privacy-centric verification layer using zero-knowledge proofs and MPC-TLS technology, allowing users to validate credentials from reputable platforms like Binance or Revolut without revealing personal data.

• Euler Finance contributes a robust lending protocol with advanced risk management features.

• Multipli provides xUSDC collateral infrastructure, ensuring consistent base yields of 8-14% through delta-neutral strategies.

• Pyth Network offers real-time, institutional-quality price feeds crucial for effective risk management.

• Avalanche serves as the high-performance blockchain foundation, boasting over 6,500 transactions per second and near-instant finality, a choice already made by major players like BlackRock and JP Morgan.

Details and Returns of the zkVerified Pool

The zkVerified pool facilitates USDC lending into xUSDC, with a maximum capacity of $50 million and a loan-to-liquidation-threshold-value (LLTV) of 96%. Access to this pool requires users to verify their identity through various centralized exchange accounts using Keyring’s secure MPC-TLS login system.

How zkVerified Markets Operate

Users can confirm their verification status on trusted platforms without revealing their identities, akin to showing an ID at a venue where only the verification status is visible. The process unfolds as follows:

1. Users validate their status through established platforms (e.g., Binance, Revolut, Coinbase).
2. Keyring generates a cryptographic proof indicating “this individual is verified.”
3. Smart contracts recognize this proof and grant access to verified pools.
4. No personal information is stored on-chain, eliminating wallet-to-identity links.

This framework fosters an institutional-grade DeFi environment where lenders can trust the legitimacy of counterparties without knowing their identities, borrowers can access capital without surveillance, and protocols can mitigate risks while maintaining decentralization.

Advantages for All Participants

• For Institutions: Access to yields of 8-14% with verified counterparties, significantly surpassing traditional fixed-income options, all while ensuring compliance without data liability.

• For Retail Users: Protection against exploitative practices and malicious actors, along with access to institutional-grade yield opportunities, all while preserving privacy through zero-knowledge verification.

• For the Ecosystem: This initiative illustrates how DeFi can expand to meet institutional demands without sacrificing privacy or decentralization, potentially unlocking trillions in previously sidelined capital.

Establishing Trust in DeFi

The zkVerified markets create a dual-layer DeFi ecosystem: open pools for general users and verified pools for institutional-grade infrastructure. This approach does not signify centralization but rather represents a choice and evolution in the space.

As regulatory scrutiny increases and the convergence of DeFi and traditional finance accelerates, zkVerified markets offer the necessary pathway for DeFi to scale while upholding the foundational principles of privacy and user sovereignty.

The future of finance is one where verification is prioritized over surveillance.

About the Collaborating Projects

Keyring Network provides a universal access layer for DeFi, enabling anonymous yet verifiable access through zero-knowledge proofs. For more information, visit keyring.network.

Euler Finance is a leading DeFi lending protocol with over $2 billion in total value locked, recognized for its innovative lending, borrowing, and risk management solutions.

Multipli offers institutional-grade stablecoin infrastructure through xUSDC, integrating delta-neutral strategies with cross-chain capabilities.

Pyth Network supplies high-fidelity, real-time market data essential for next-generation DeFi applications.

Avalanche is a high-performance blockchain platform that delivers institutional-grade infrastructure for scalable DeFi applications.

For further details on zkVerified markets, stay tuned for upcoming announcements regarding availability.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.