✅0xbow Screening
0xbow and Veil Cash to bring privacy to more users on Base
Privacy on Base is now more accessible
Historically, Veil Cash limited deposits to verified users – addresses that met specific onchain requirements. To broaden access without compromising compliance, Veil is now open to deposits from any address on Base, enabled through our integration with 0xbow Guardian.
Veil Cash partners with 0xbow to screen incoming deposits for illicit activity using KYT (Know Your Transaction) checks before funds can enter the pool. Even if an address is not pre-verified, the user can still use Veil by completing a one-time screening process that verifies the deposit can be safely accepted.
About 0xbow
0xbow builds compliant onchain privacy infrastructure that makes peer to peer private transactions safer to operate at scale. Their core product is the Privacy Pools protocol on Ethereum, a pragmatic approach to onchain privacy that excludes illicit actors while preserving privacy for legitimate users.
Privacy Pools is protected by 0xbow Guardian which conducts KYT (Know Your Transaction) screening on incoming deposits and adds them to the association set if they pass vetting. This allows users to prove cryptographically that their funds are associated with their peers and not illicit actors. Guardian is flexible and can be configured for privacy protocols, L1/L2 networks, and enterprise use cases.
By partnering with 0xbow, Veil can welcome a wider user base while ensuring that each new deposit is screened before it enters the pool.
How screening works
When a deposit comes from a user who is not yet verified, the following process applies:
Deposit to Queue
The user’s funds are first sent to a temporary queue contract, not directly into the Veil pool. This holding contract isolates the deposit until compliance checks are completed.
KYT Screening Initiated
Immediately after the deposit, Veil’s deposit engine sends a screening request to 0xbow.
The 0xbow compliance engine applies KYT (blockchain analysis) to inspect the origin and history of the funds, checking for links to illicit activity or sanctioned addresses.
In most cases, screening completes within ~1 hour, but this may take up to 5 days for complex cases.
Holding Period
A 6-hour holding period is applied to screened deposits. During this time, 0xbow’s off-chain checks are expected to complete.
The user will see their deposit as pending in the queue.
If 0xbow clears the deposit earlier, the funds can move forward before the 6 hours are up.
Approval and Deposit
If 0xbow approves the deposit (no risky or illicit source detected), the Veil operator address finalizes the deposit.
The operator pulls funds from the queue contract into the Veil pool contract and credits the amount to the user’s private balance.
The underlying zk proof for the deposit is generated automatically by Veil’s backend; the user does not need to generate or handle any proofs.
Rejection and Refund
If 0xbow declines the deposit (e.g. funds linked to a known illicit source or otherwise failing compliance rules), the deposit never enters the pool.
The funds in the queue contract are returned in full to the original depositing address.
No fee is collected and no privacy is provided on rejected deposits.
Additional notes
This 0xbow integration allows Veil to maintain its compliance-oriented privacy model even as we open the doors to unverified users. Screening is performed using on-chain transaction history only; 0xbow does not require government IDs, selfies, or other personal identity documents from users.
Veil remains non-custodial throughout this process. Funds move between smart contracts controlled by the user and the protocol; Veil never takes ownership of user assets at any point in the screening or deposit flow.
If a user’s funds are “clean,” the deposit enters the pool with the same anonymity guarantees as any other deposit. Once inside the pool, deposits from screened addresses are indistinguishable from deposits by pre-verified users.
If the funds fail screening, the deposit never joins the pool and is returned in full to the original address, with no protocol fee charged and no privacy benefit provided.
Last updated