Aster launches privacy-focused Layer 1 blockchain for derivatives trading

• Aster launched its own Layer 1 blockchain to support faster, zero-fee perpetual derivatives trading.
• The network uses zero-knowledge encryption and stealth addresses to ensure default privacy for trades, positions and wallet activities.
• The launch could intensify competition with Hyperliquid, as both platforms now operate proprietary chains for decentralized trading.

Perpetual decentralized exchange Aster (ASTER) has launched Aster Chain, its purpose-built Layer 1 blockchain designed for derivatives trading, according to an announcement on Tuesday.

Aster transitions to its own Layer 1 blockchain

The privacy-focused mainnet represents Aster's shift from its previous reliance on third-party chains to its high-performance blockchain. With Chain Genesis now live, traders gain access to full custody of assets, execution speeds comparable to centralized exchanges and default privacy protections that conceal positions and balances from public view.

Aster claims its L1 delivers 50-millisecond block times, supports up to 100,000 transactions per second, and eliminates gas fees through its hybrid Proof-of-Staked Authority (PoSA) consensus model. Order matching and settlement are conducted entirely on-chain via an integrated clearinghouse.

Aster also claims that real-time oracles aggregate weighted median pricing data from 14 major exchanges to ensure accurate funding rates, mark prices, and liquidations.

Additionally, cross-chain bridges will enable seamless deposits and withdrawals across networks, including BNB Chain, Ethereum, Arbitrum, and Solana, consolidating liquidity across ecosystems.

The network employs account privacy by default through the use of zero-knowledge (ZK) verifiable encrypted orders and one-time stealth addresses, preventing wallet linkage and behavioral tracking unless users choose to share access via a Viewer Pass.

"Put it another way: there's no way to link your wallet to your trades. No one can trace, correlate, or reconstruct your trading behavior. Want to prove what you did? Generate a Viewer Pass. It decrypts your on-chain records for anyone you share it with. No one else can access them," Aster wrote in a Tuesday X post.

The rollout will take place in phases, beginning with partnership announcements, followed by public staking for ASTER token holders later this week. Subsequent stages include ecosystem expansion through the Aster Code program and a comprehensive brand and user interface upgrade. A privacy-focused blockchain explorer is already live, enabling on-chain data queries, according to the Aster team.

Aster Chain's launch comes amid growing competition with other perpetual DEXs, including Hyperliquid, which also functions on its native Layer-1 network. The launch could intensify competition, with Aster's focus on privacy and execution speed emerging as key differentiators.

ASTER trades at $0.76 on Tuesday, up 4% over the past 24 hours at the time of publication.