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.

Local VeilVM uses VEILENC1 order envelopes, VTG2 threshold gossip (2-of-3 on the current node: one key cannot decrypt the wire), and Groth16 proof-gated settlement. The live circuit binds public digest slots; it does not yet prove matching inside the circuit. This is a local testnet, not Fuji or mainnet.

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 has 19 native actions (IDs 0–18). The local genesis node exercises commit/reveal/proof/clear, native VAI/AMM/COL, and companion intent rails. Feb “GO FOR PRODUCTION” packets are not launch authority. Local ≠ Fuji ≠ mainnet.