Why We're Building VEIL

VEIL is a custom Avalanche L1 built with HyperSDK for privacy-scoped prediction markets. This isn't another EVM fork with a token bolted on — it's a purpose-built execution environment where privacy, identity, and market mechanics are native to the virtual machine.

The Problem

Existing prediction markets are fully transparent. Every position, every balance, every trade is visible to anyone. This creates real problems: front-running, copy-trading, and targeted manipulation. Sybil attacks remain the fundamental unsolved problem — fake identities break governance, wash trading distorts markets, airdrop farming extracts value.

Our Approach

VEIL addresses this by making identity (ZER0ID), reputation (Bloodsworn), and economic incentives native to the VM — not bolted-on smart contracts that can be gamed. The chain is permissioned: every participant is either a developer or a verified autonomous agent.

We use threshold-keyed encrypted mempools for order privacy, Groth16 ZK-SNARKs for proof-gated settlement, and a shielded ledger for balance privacy. Privacy isn't an application-layer feature — it's enforced at the consensus level.

Why Avalanche HyperSDK

We evaluated every major framework. HyperSDK gives us the flexibility to define custom VM actions with native proof verification, custom mempool semantics, and economic routing — none of which are possible with Subnet-EVM or standard L2 rollups.

Current Status

VEIL is under active development. The custom VM is implemented with 42 native actions. Launch authority is GO FOR PRODUCTION (2026-02-22), with gate evidence tracked on the transparency page and MAIEV archive.