FHEVM

Zama refactored fhEVM's attestation consensus to be generic, moving ciphertext logic into modules and adding an Attestation trait with Subject and Material types for RFC-038 PRF outputs. This keeps RFC-023 ciphertext behavior unchanged while enabling reuse across relayer and KMS components.

Zama merged relayer-http into Solana's local harness, solana-e2e, and preview environments, letting Solana hosts decrypt over HTTP through KMS connector proxies. After C1, HTTP becomes Solana's only decryption path.

The fhEVM Solana batcher now opens the next batch during dispatch, ensuring exactly one pending batch at all times. This aligns Solana's design with EVM rollover logic and removes the gap where dispatch could leave no pending batch.

PLabs released pUSDC, a privacy stablecoin backed 1:1 by USDC reserves on Ethereum using the Zcash Orchard note model and pERC20 standard. The protocol enables trustless minting and redemption while hiding ownership and transfers on-chain.

NDIMBAL, a PoolTogether-style savings pool, went live on Sepolia with confidential tokens (ERC-7984), encrypted draws, and private balances. The pool operates entirely on encrypted data, so balances and pool totals never leak on-chain.

Samizdatproject built a payment link system for encrypted ERC-7984 tokens where invoice amounts and payment status stay encrypted; the contract verifies payments homomorphically without decrypting either number, and the app is live on Sepolia with verified contracts.

FungoLabs is minting 3,232 encrypted NFTs on Zama's FHE technology where holders keep art sealed and decide whether to make it public; 500 free mints go to whitelist winners, 2,500 are for public sale in cZAMA, and 232 are reserved for the team.

Fhenix merged a pull request adding a deny list to TaskManager, blocking specific callers from task intake when the access list is disabled; the feature passed 254 tests and ships with the task:upgradeTM migration.

Destinez released Veil, a TypeScript app for splitting bills with encrypted balances on Zama FHEVM; members add expenses, view encrypted balances, reveal their own net position, and settle with encrypted confidential-USDC transfers on Sepolia.

DannyTrillion deployed SealedNFT on Sepolia, an ERC-721 where each token's power stat (euint8 in [1, 100]) is encrypted and sealed to the holder; the contract drew the random stat in the FHE coprocessor and transfers re-grant the ACL to the new holder.

Zama deprecated @zama-fhe/relayer-sdk v0.4.5 and points users to the unified Zama SDK (@zama-fhe/sdk on npm); the release adds type hints and a runtime warning to createInstance.

Zama released fhEVM v0.15.0-0 with updates to host-contracts including ConfidentialBridge deployment tasks, coprocessor re-randomization of input ciphertexts, and new upgrade-controller and consensus-detector implementations.

Zama's confidential DeFi ecosystem grew to 16 vaults managed by five curators (Steakhouse Financial, Armitage by Wintermute, Flowdesk, RockawayX, and Bitwise) with over $90M in shielded total value locked.

Fhenix mainnet launches October 21, 2026, enabling confidential tokens on Ethereum and Arbitrum through a Dual-Mode Token Standard that lets users switch tokens between public and confidential modes in a single transaction; five decentralized applications will launch concurrently on the CoFHE coprocessor.

Zama expanded confidential DeFi to 16 curated vaults on Morpho across five asset classes (USDC, USDT, WBTC, AUSD, TGBP) with Steakhouse Financial, Armitage by Wintermute, Flowdesk, RockawayX, and Bitwise. The Steakhouse USDC Prime vault reached $40M shielded TVL in seven weeks, validating institutional demand for confidential yield.

OpenZeppelin Confidential Contracts prior to v0.3.2, v0.4.2, and v0.5.2 contained an access control flaw allowing handle substitution attacks and private FHE state leaks through side-channels. The vulnerability affects ERC-7984 and VestingWalletConfidential by consuming encrypted handles from untrusted contracts without ACL verification.

Merkl integrated ERC-7984 confidential token standard support, allowing users to claim rewards in confidential tokens while keeping positions and rewards private.

Zama expanded Morpho's Confidential Vaults from 5 to 21 on Ethereum on September 15, and partnered with Merkl on September 17 to launch Confidential Incentives for confidential tokens, with Zama Swap Protocol going live the same day.

FhenixProtocol released cofhe-contracts v1.0.0 with role-based access control across host-chain and registry-chain contracts and mainnet deployment support.

Raycash published research showing three methods to unwrap ERC-7984 confidential tokens in one transaction using user decryption, reducing gas from 1.55M to 632k–1.31M and enabling atomic composability with other contracts.

Fhenix merged a pull request replacing the deterministic TaskManager proxy with CoFHEAddressBook, a canonical UUPS proxy mapping task manager IDs across chains, enabling multiple TaskManager versions to coexist per chain.

Fhenix merged mainnet deployment support for host-chain contracts on Ethereum and Arbitrum One, including Safe-first admin handover and deterministic TaskManager bootstrap paths.

cUSDT, a confidential USDT token with encrypted balances and transfer amounts, launched on Ethereum. Users can shield USDT at app.zama.org and earn yield on Morpho while keeping transfer amounts private.

Ryan S. published analysis comparing the Zama FHEVM whitepaper (version 3.1, June 2025) against codebase at commit ac6ff45, documenting changes to design principles, components, Solidity library, KMS, Gateway contracts, and performance numbers over the past year.

On September 15, 16 confidential vaults on Morpho went live across five institutional curators and five asset classes, using ERC-7984 confidential tokens to keep deposit sizes, position changes, and timing private. Zama also launched its Confidential Swap Protocol for private trading.

Fhenix launched FheCat, an ERC-721 NFT collection where pixel cat traits are fully encrypted using CoFHE, keeping characteristics permanently hidden onchain. This demonstrates encrypted gaming and NFT use cases on Fhenix.

Fhenix expanded CoFHE testnet from Ethereum Sepolia to Arbitrum Sepolia and Base Sepolia, with use cases including private DeFi, encrypted lending, MEV-resistant trading, and confidential AI ahead of mainnet launch.

The Wintermute Confidential WBTC vault went live, allowing users to earn yield on Bitcoin with balances encrypted onchain through Zama's platform. This is the first production DeFi application combining confidential tokens with yield generation.

A researcher demonstrated a 405M-parameter recurrent language model generating text under FHE, running 148 consecutive steps for 64 concurrent conversations with state carried under CKKS encryption at 128-bit security, achieving 2.7–2.9 seconds per token per conversation with 99.7% fidelity to plaintext output.

A technical guide explains how to implement 1:1 swaps between ERC-7984 confidential tokens and ERC-20 using OpenZeppelin's confidential contracts library on FHEVM, handling encrypted amounts through FHE APIs and KMS-verified decryption.

At TOKEN2049 and Vault Summit in Singapore, Zama introduced its Confidential Vault Stack, layering privacy onto vault strategies while keeping allocators' positions private, curators' strategies public, and enabling regulator access.

Researchers simplified an FHE-based multi-party computation protocol by removing zero-knowledge proofs of knowledge, using an FHE scheme with encrypted PRF functionality instead. This simplifies the security proof and formalizes encrypted PRF security.

Fhenix launches October 21 with production fhEVM on Ethereum and Arbitrum, including confidential tokens that move between public and private balances while maintaining composability. Apps like Redact Money are building on the network to reduce front-running and MEV exposure.

FhenixProtocol merged a pointer-based ACPShareRegistry upgrade that stores ACP and metadata in the Shared event, reducing storage from 453k gas to four on-chain slots. The upgrade is in-place via UUPS proxy, keeping the registry address unchanged.

Zama launched a confidential yield product letting users deposit into curated vaults and earn without revealing their position on-chain. Users can shield, deposit, and earn while maintaining privacy.

Sealed is building a protocol for organizations to train AI on sensitive data without exposing raw data, using Zama's TFHE-rs and Concrete ML on Bittensor miners with fhEVM-compatible execution. The architecture chains Akash compute, Bittensor Subnet miners, and Filecoin storage for healthcare, legal, and financial services.

A comprehensive guide to fhEVM's security model covering Access Control Lists, EIP-712 permit signatures, and distributed decryption was published on GitCode blog. Plaintext never leaves user devices, with on-chain ACL controlling permissions and off-chain signatures providing user consent for decryption.

OpenZeppelin co-hosted a session in Zurich with CMTA on confidentiality in regulated on-chain markets, featuring confidential securities built on Zama with atomic settlement of encrypted assets and cash legs. Confidentiality is becoming a precondition for institutional tokenization at scale.

Researchers published a weighted batch threshold encryption scheme that lets validators decrypt transaction batches based on stake weight while keeping others private. It avoids communication costs scaling with validator weight and includes a distributed key generation protocol with implementation results.

Aragon released Confidential Voting, an OSx governance plugin on Zama Protocol that keeps votes encrypted while counting them. Programmable confidentiality lets organizations define what information decrypts, to whom, and when.

Inco went live on Celo testnet, letting users shield balances and send payments privately on the stablecoin network. The integration connects Inco's confidential compute to Celo's 32+ native stablecoins.

Fhenix released CoFHE v0.8.0 on testnet with faster FHE computations, end-to-end input verification through onchain commitments, and full computation traceability. The update moves toward production-ready confidential computation on mainnet.

CoFHE contracts v0.2.0 added ACP (Permit V3) for scoped, revocable permissions, onchain ACP sharing through upgradeable ACPShareRegistry, and Shared Euints support. The release also fixed task verification and added missing FHE.sol method bindings.

Canopy integrated CoFHE into the Canopy Stack with a new Confidential App template, letting developers add encrypted computation through TypeScript. CoFHE is deployed on Ethereum, Arbitrum, and Base.

Zama shipped Steakhouse Confidential Prime USDC on Morpho with $26 million deposits since June 23, and Zama Confidential RFQ on July 23 as the first fully onchain confidential swap venue. Season 4 of the Zama Developer Program offers bounties for confidential asset applications.

Self-custodial trading platform Sedona replaced hardware-based privacy with Fhenix's Confidential FHE infrastructure after migrating from Seismic to Arbitrum, encrypting user balances and portfolio positions. The switch removes trust assumptions by relying on cryptography instead of trusted hardware.

Prism, a self-custodial wallet for foreigners in Vietnam, is integrating Inco Lightning on Base Mainnet to enable confidential payments where users scan merchant QR codes without exposing balances or transaction history. The integration addresses privacy gaps in transparent blockchains.

Kaddu deployed eight confidential civic tools on Sepolia including KadduTender (sealed-bid auctions with encrypted winner computation), KadduVote (encrypted ballot tallying), and a threshold whistleblower vault. All four main contracts are source-verified on Etherscan.

CipherOps combines confidential workflows including asset wrapping, private reveal, airdrop, and vesting into one composable platform for organizations needing encrypted employee salaries, investor allocations, and contractor payments on-chain. The platform includes Runway, an interactive startup simulation where players complete real Sepolia transactions to learn confidential computing.

Macetz deployed a live dApp on Sepolia making Zama's official ERC-20 to ERC-7984 confidential token registry browsable with wrap/unwrap, universal decrypt, faucet, and confidential payroll features. The app addresses fragmentation where developers were building their own wrappers instead of using the canonical registry.

OpenZeppelin merged support for passing up to 12 bytes of metadata alongside unwrap requests, packed into the same storage slot as the recipient address. The change reduces storage costs ahead of EIP-8037 by avoiding additional SSTORES while preserving metadata for downstream identification.

Cipherproof deployed a confidential wallet dApp on Ethereum Sepolia where cUSDC balances live as FHE ciphertexts on-chain; transfers show sender but hide amount, and users decrypt their own balance via gasless EIP-712 permits. The app combines encrypted amounts, stealth addresses (ERC-5564), and EIP-7702 gas sponsorship to hide transfer amounts and payment graphs.

A confidential vesting-backed credit protocol built with fhEVM, OpenZeppelin Confidential Contracts, ERC-7984 tokens, and TokenOps vesting was validated on Sepolia with encrypted preference books, bilateral escrow, and bond mechanisms. The implementation includes a TypeScript SDK and end-to-end testing with encrypted cUSDC callbacks and relayer proof paths.

Inco deployed its Confidential Token app on Base mainnet on September 2, 2026, and launched Inco Lightning on Celo on August 27, 2026, bringing encrypted ERC-20 balances and transfers to both networks. Vietnamese payments app Prism integrated Inco Lightning for confidential QR payments.

AlehNat published a Zama FHE Hardhat template combining ERC-3643 security token and ERC-7984 confidential token standards on fhEVM, with local test suite, Sepolia deploy scripts, and optional Next.js demo webapp. The repository provides a starting point for building regulated confidential tokens.

A payroll ledger where salaries remain encrypted on-chain while the contract performs arithmetic on ciphertexts was deployed to Sepolia on August 3, 2026, with Phase 4 (ShieldedPool) verified live handling 200-employee payroll runs in 2 transactions. Browser-tested withdrawals of 10,000 TEST_USDT completed successfully.

secretPool is a no-loss prize-savings app on Ethereum Sepolia using Zama FHE to keep depositor balances, time-weighted balances, and payouts encrypted while keeping draw schedules and yields public. Users encrypt principal in the browser before deposit and decrypt only their own data via EIP-712 signature.

Confidential Pool is an Aave-backed prize-savings app on Ethereum Sepolia where users shield yield positions and enter FHE-random draws with encrypted balances and payouts. A complete Sepolia cycle harvested real Aave yield, deposited 9 caLINK privately, proved a 6.72 caLINK aggregate time-weighted balance, and withdrew full principal.

VOTRA is a prize-savings protocol live on Sepolia where users set a private financial commitment that determines their winning weight against an encrypted balance. Commitment history stays confidential while the protocol enforces consequences onchain.

OoviyaManickam published a Foundry template for building on FHEVM with example ERC-7984 confidential token and FHECounter contracts deployed on Sepolia, plus a frontend guide showing how to encrypt inputs with the relayer SDK before write calls and decrypt outputs via EIP-712 signature.

Zama announced $ZAMA token is now available in the Revolut app, reaching 70 million users. The Steakhouse Confidential Prime USDC vault on Morpho crossed $40M in deposits using encrypted cUSDC balances and batch settlement.

Inco and Megapot held a Summer Game Jam where Mentalist, a murder-mystery staking game with encrypted choices, won first place and Zunno, an onchain Uno game on Base with private hands, won second. Both use encrypted state enforced by smart contracts.

OpenZeppelin Confidential Contracts prior to 0.3.1 has a critical vulnerability where the ERC7984ERC20Wrapper fails silently when total supply overflows, causing users to lose funds when wrapping tokens. The wrapper fills after approximately 18.4 trillion tokens with default settings.

Sortis is a no-loss lottery savings pool live on Ethereum Sepolia where deposits in confidential ERC-7984 tokens earn yield, with winners drawn over encrypted state so balances and identities remain private.

Fumbo is a no-loss prize savings pool live on Sepolia where users deposit confidential cUSDT, keep their principal, and one weighted-random depositor wins the yield every 15 minutes with all balances and winner identity encrypted end-to-end.

Zama announced 9 winners from 188 submissions including Confidential Safe Wallet, Ghostlend lending protocol, and Confidential Buybacks dark pool, all built on FHEVM with encrypted balances and transactions. Winners received prizes ranging from 1,750 to 2,500 cUSDT.

OpenZeppelin Security audited CMTAT Confidential from June 12–24, 2026, finding 8 total issues (1 medium, 2 low, 5 notes) with zero critical or high severity findings. CMTAT Confidential is a regulated security token using Zama's FHE to encrypt balances and transfer amounts while maintaining compliance controls.

OpenZeppelin merged a fix to BatcherConfidential that prevents the wrapper from executing routes when a batch's unwrap request is still pending, avoiding loss of underlying tokens from other batches.

Zama will deploy its confidential settlement layer to two new EVM chains in the second half of 2026. Zama holds $82.7M of confidential DeFi TVL, up 3.6x in 90 days.

OpenZeppelin's pull request #445 implements encrypted per-operator spending limits using FHE, allowing operators to spend up to an encrypted allowance on behalf of token holders. The prototype passes 664 tests across all ERC-7984 variants.

A developer built SorteCerta, a no-loss lottery using Zama's confidential tokens, deployed on Ethereum Sepolia with cUSDC deposits and encrypted balances keeping participants, amounts, and winners private. The app was submitted for Zama's bounty season 4 with plans to integrate Morpho yield and launch on mainnet.

Lok Protocol deployed a confidential prize-linked savings application on Ethereum Sepolia with verified contracts for cUSDC wrapping, encrypted balances, and publicly verifiable draws that reveal only aggregate pool totals. The project completed all 16 bounty requirements before the September 5, 2026 deadline.

Fhenix released a Dual ERC Token Standard based on FHE that lets users switch between public and confidential token balances within a single ERC-20 address. This eliminates liquidity fragmentation and lets tokens work with existing DeFi infrastructure while preserving confidentiality when needed.

Nomyx integrated Fhenix's CoFHE to add confidential positions to tokenized assets without sacrificing public rails or composability. Real-world assets on-chain have grown to nearly $30B, but the $30T alternative asset market remains on the sidelines because position legibility and borrower data visibility create regulatory and competitive risks.

BlindProcure, a confidential procurement dApp built on Zama FHEVM, lets buyers create tenders and suppliers submit encrypted bids while the contract compares encrypted prices and selects the lowest valid offer without revealing losing bids. This preserves sealed-bid fairness and auditability while keeping supplier pricing confidential from competitors.

Inco Lightning went live on Base mainnet, bringing enhanced confidentiality to smart contracts. The launch signals institutional interest in privacy features as Base positions itself against competing blockchain platforms.

FHE.allowGlobal() from @fhenixprotocol/[email protected] consistently fails on Arbitrum Sepolia's deployed CoFHE TaskManager while all other FHE calls succeed, reverting during eth_estimateGas. The issue appears to be a missing implementation or ACL check rejection on the TaskManager proxy.

Fhenix merged a pull request making TaskManager emit five new events whenever privileged setters change admin state, covering setACLContract, setPlaintextsStorage, and enable/disable functions. This enables off-chain monitoring tools to detect admin changes that would otherwise be invisible when calls arrive wrapped through a Safe multisig.

GeneralSage built OjaBid, a B2B marketplace for Nigerian auto dealers using Zama FHEVM to keep bids encrypted during auctions so dealers compete on asset value without exposing identity or maximum price. The testnet product handles multiple lots with encrypted bid comparison, verifiable decryption proofs, and a browser-based UI that encrypts bids with the Relayer SDK without requiring dealer wallets.

Sithum Ravishka published research showing FHE smart contracts can keep balances encrypted while remaining completely insecure because encryption protects only confidentiality, not integrity, authorization, availability, correctness or accountability. The threat model changes when contracts operate on ciphertexts they cannot observe, introducing new permissions, infrastructure components, and failure modes developers must understand before deploying confidential contracts with real value.

Nomyx announced integration of Fhenix's Confidential FHE to enable tokenized funds with confidential positions and selective disclosure for regulators. Real-world asset tokenization has grown from $4B to nearly $30B, but the $30T alternatives market requires private positions onchain, making confidentiality infrastructure rather than a feature.

OpenZeppelin merged pull request #450 to pass the initiating operator's address to hook modules in ERC7984Hooked, including approved delegates for delegated transfers. Hook events now include the operator's address, improving developer tools for confidential token implementations.

An open issue in FhenixProtocol/cofhe-contracts reports that ICofhe.sol does not define the UnsignedEncryptedInput struct despite being referenced by downstream packages like @cofhe/mock-contracts, causing compilation failures. The struct definition is missing from the source file but required by MockTaskManager.sol.

Samuel Dahunsi published a comparative engineering study of Zama fhEVM and Fhenix CoFHE through three working products: Shade (confidential money on Zama), VeilDrop (ERC-7984 token distribution), and CipherMarket (private positions on Fhenix). The analysis shows FHE does not provide one universal privacy architecture; applications must decide which state is encrypted, who may reveal it, and which metadata must remain public.

OpenZeppelin merged a security fix to ERC7984ERC20Wrapper that enforces stricter validation of recipient data in ERC-1363 transfer callbacks, requiring data to be either 0 or 20 bytes. The hardening prevents invalid recipient decoding that could cause wrapped confidential tokens to fail or behave unexpectedly.

A developer building a confidential PoolTogether dapp asked the Zama community whether evaluating winner eligibility at claim-time using encrypted balances and FHE.randEuint32 satisfies the bounty requirement for deposit-weighted winner selection over encrypted data. The question highlights performance tradeoffs between evaluating winners during draw closure versus at claim-time in FHE applications.

OpenZeppelin released v0.3.2 on August 5, adding access control hardening to ERC-7984 and VestingWalletConfidential to prevent uninitialized handle access in confidential token operations. This fixes a critical vulnerability in encrypted token handling.

Zama announced a partnership with Elliptic to integrate compliance into confidential finance applications. The partnership enables FHE-based financial apps to meet regulatory requirements without compromising confidentiality.