FHENIX H1 2025 Recap: Laying the Foundation for Confidential DeFi

Mid-2025 check-in: Fhenix is shaping up to be the backbone of encrypted computation on Ethereum. We’re all-in on making FHE the go-to standard for onchain confidentiality. Here’s a look at what we’ve shipped lately — and a sneak peek at what’s coming next as we keep building the Confidential DeFi layer for Ethereum.

CoFHE Testnet: Encrypted Compute in Action

We successfully launched CoFHE — our encrypted compute coprocessor — on Ethereum and Arbitrum testnets.

What’s unique?

– Real FHE powering smart contracts, no trusted hardware or sidechains

– Solidity-compatible: devs use the tools they know

– Stateless off-chain compute, fast and scalable

– Handles sensitive logic (e.g. bids, liquidations, governance votes) without revealing data

Check out the CoFHE documentation here

Partnership with Offchain Labs

In Q1 2025, Fhenix partnered with Tandem by Offchain Labs — creators of Arbitrum and leaders in Ethereum scaling — to integrate Fully Homomorphic Encryption (FHE) across blockchains. This collaboration, supported by strategic investment, focuses on practical R&D to make encrypted onchain computation faster, more accessible, and developer-friendly. The involvement of cryptography experts Ed Felten, Steven Goldfeder, and Victor Shoup significantly advances Ethereum’s confidential future.

Redact App: The entry gateway to Confidential DeFi

Redact lets users mint and manage fhERC-20 tokens — ERC-20s upgraded with encrypted balances and transfers.

What this means:

– With FHE under the hood, Redact enables confidential transactions — meaning your transactions details are kept private

– No changes to existing EVM infrastructure — fully composable

– Testnet traction: 1.5K unique users and 11K transactions on Sepolia

Threshold Network: Confidentiality at Scale

Our Threshold Network is a critical breakthrough in practical FHE — developed by our award-winning research team to solve one of the biggest challenges in cryptography: achieving fast, scalable decryption. Our TSN delivers performance that’s orders of magnitude faster than existing solutions, unlocking encrypted on-chain applications that were previously impractical due to decryption bottlenecks.

Key features:

– Minimal latency decryption

– Efficient distributed key shares

– Built to grow alongside DeFi-scale use cases

Watch this space for more details about the Threshold Network coming soon!

Where We’re Headed

“The next wave of DeFi will require privacy by default. In H1, we proved that encrypted compute isn’t a theory — it’s live, scalable, and composable. The foundations are set for developers to start building the future of Defi — truly Confidential DeFi applications,” — says Guy Itzhaki, CEO Fhenix.

In the second half of 2025, we will focus on:

– CoFHE mainnet: moving from testnet to production as well as expanding deployment of CoFHE on additional EVM chains

– Redact mainnet: encrypted tokens ready for real DeFi

– Confidential █████████ design in progress (a major use case for both mainstream and institutions) – to be shared soon

– SDK + developer tools: making encrypted logic easier to integrate

– Deeper partnerships across DeFi, privacy, and infra

– Encryption Day [Buenos Aires] — Become an Early Bird

Thank you to everyone testing, building, and providing feedback. The confidential future of DeFi is taking shape — and we’re excited to share what’s next. If you’re building, reach out.

💬 Which part of Confidential DeFi excites you most? Let us know in comments!