Shield transactions are conducted transparently, employing a public wallet for their execution.

The process underlying a shield transaction involves the transfer of ERC-20 tokens to the Kalium contract, where they become linked with a Kalium Wallet and establish a private balance.

Once the tokens are successfully shielded, the respective Kalium Wallet gains the ability to initiate confidential transfers and engage in cross-contract interactions with external smart contracts.

It's important to note that the process of shielding incurs a fee amounting to 0.25% of the tokens being shielded. The fee rate is subject to potential adjustments by the Kalium DAO. However, once tokens have been shielded, any subsequent private transfers carry no associated fees.

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