Bitcoin News Australia

gm Bankless Nation,
The last couple days of market havoc unwound months of gains and investors are souring on Trump's rhetoric as he dials up the intensity.

Today's Issue ⬇️

1. ☀️ Need to Know: Canadian War
   Trump's tariff battle wreaks market havoc.
2. 🗣️ Tactic: Veil Your Transactions
   Getting started with Veil on Base.

Sponsor: Uphold — Buy, swap & hold 300+ crypto. Capital at risk.

1. 👩‍💼 Sen. Lummis Reintroduces BITCOIN Act to Increase BTC Reserve Holdings. Lummis lays out her plan for acquiring 1 million BTC for the government's reserve.
2. 🖥️ California Regulators Shut Down Dozens of Crypto Scam Sites. As federal regulators take a step back in crypto enforcement efforts, California's regulators are cracking down.
3. 🪐 Starknet Creator Establishing Its Own 'Strategic Bitcoin Reserve.' The reserve is part of StarkWare's efforts to serve as a link between ETH and BTC ecosystems.

	Crypto $2.69T	↗ 4.2%	↘ 6.3%
	BTC $83,126	↗ 4.6%	↘ 5.5%
	ETH $1,948	↗ 3.5%	↘ 11.4%

Earlier this month, I wrote about the Fluidkey privacy app on Base. It lets you obscure wallet connections to outside observers. But what if you want full untraceability rather than just unlinkability?

For example, say you want to play Crypto: The Game under an alt account rather than under your real name, but onchain sleuths can study the wallet address you mint your entry pass NFT from.

How can you ensure there's no way to connect your transactions from your main wallet to your alt wallet?

For that, you need to be able to move ETH around without creating any discernible link between your wallets. And if you want this level of privacy, you're in luck because there's another Base app that offers this capability: Veil.

What is Veil?

Veil is a privacy app built on Base and powered by zk-SNARKs, i.e. zero-knowledge proofs. The project lets users deposit funds into privacy pools and later withdraw them to a new wallet, breaking the link between deposit and withdrawal addresses.

Specifically, users deposit ETH or USDC into fixed-amount pools. These pools come in two types:

• 🔓 Public Pools — Open to any user.
• 🛡️ Verified Pools — Restricted to users verified via Coinbase Verify, which is powered by the Ethereum Attestation Service (EAS) and lets you privately confirm you have a Coinbase account.

Veil's deposit limits

When you deposit into one of Veil’s privacy pools, the protocol generates a “secret note,” which contains 1) a cryptographic proof attesting to the legitimacy of your deposit and 2) a withdrawal key.

On the inside, your deposit gets anonymized within your pool of choice. When you're ready to withdraw later, you input your secret note into the Veil app and select a different wallet or an entirely new wallet to send to.

The $VEIL token

$VEIL is the native token of Veil and plays a central role in accessing the protocol.

That's because the Verified Pools, which offer higher privacy and compliance guarantees, require at least 2,500 $VEIL to participate (roughly $175 at current prices).

$VEIL's pool gating details

Additionally, users who deposit into Veil’s privacy pools can earn $VEIL rewards over time. This is to encourage more participation to boost the anonymity set so the protocol is more effective.

Lastly, Veil takes a fee of 0.5% on all deposits, and a majority of this revenue will go to users who stake $VEIL once the project rolls out its staking system.

How to use Veil

1. 👛 Visit veil.cash/app and connect your wallet. Be sure to set your network to Base if it's not already.
2. ⛲ Select a deposit pool. Choose the token (ETH or USDC) and pick either a Public or Verified Pool. Buy $VEIL if you want to use a higher denomination pool.
3. 📝 Generate and save your secret note. This is your key to withdrawing later, so back it up securely!
4. ☑️ Confirm the deposit. Approve the transaction and your funds will be added to, and then mixed within, the anonymity pool.
5. 📥 Withdraw when ready. When you want to retrieve your funds, go to the “Withdrawal” tab in the Veil app. Then enter your secret note and the wallet address you want to send to.
6. 💸 Confirm the transaction. Veil will generate a zk-SNARK proof to validate your withdrawal. You'll then receive funds in your target address with no traceable link to your sending address.

Tips for beginners

Veil's secret notes function like private keys—whoever has access to them can withdraw the deposited funds.

If someone else obtains your secret note, they can steal your funds by withdrawing them to their own address. Don't share your secret note with anyone, treat it like your wallet's seed phrase.

Ideally, you securely back your note up offline. Whatever you do, don't store your note in plaintext on cloud services like Google Drive, and don't enter it on public or potentially compromised computers.

Also, Veil's docs offer some wisdom on the best privacy practices, which you'll want to keep in mind. If you decide to try Veil, the team recommends:

• ⏳ Wait before withdrawing — If you withdraw too soon after depositing, someone could correlate the timing of your transactions. It's best to let multiple new deposits enter the pool before you make your withdrawal.
• 📊 Use the most active pools — The larger and more frequently used a pool is, the harder it is to track individual movements. Consider sticking to pools with the most deposit and withdrawal activity.
• 🔀 Break up large deposits — Instead of depositing a single large amount into Veil, split it into smaller deposits across multiple pools. This makes it harder for onchain analysts to detect patterns.
• 🎭 Avoid predictable behavior — If you always deposit and withdraw the same amounts, or use the same timing patterns, you make it easier for someone to connect your transactions. Varying your approach is the best bet.
• 🔑 Withdraw to fresh wallets — Withdraw to new wallets that have never interacted with your main address for the most privacy. Note that using the same wallet for multiple withdrawals can expose a pattern.

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