In this review, we’re taking a look at Enclave Markets, the world’s first fully encrypted exchange. We’ll be covering the platform’s services, offerings, and structure to see what separates it from other exchanges in the market.
About Enclave Markets
Initially envisioned and launched as a permissioned FEX with strict Know-Your-Customer (KYC) requirements, Enclave’s platform is now marketed as EnclaveX, a permissionless trading platform offering the same core benefits of privacy, performance, and decentralization. As such, Enclave Markets allows all users with eligible wallets to make use of its trading features with no KYC required.
Aiming for institutional-grade trading infrastructure, Enclave Markets focuses primarily on cross-chain functionality, deep liquidity, and encryption. For example, the platform supports native USD Coin (USDC) deposits from leading Layer-1 (L1) and Layer-2 (L2) chains such as Avalanche (AVAX), Solana (SOL), and Ethereum (ETH). All trades are routed through the above-mentioned Enclave architecture to ensure confidentiality and low latency.
Likewise, by removing permissioned gatekeepers and decentralizing core operations and replacing them with a network of independent checkers called Attestors, Enclave Markets ensures that no single party controls the exchange.
Potential Enclave Markets clients include:
- Retail traders looking for privacy and security;
- Professional trading firms and market makers looking to execute large trades without market impact;
- Institutional investors seeking secure crypto markets and additional yield strategies.
Enclave Markets milestones
- Launched in 2023 as the first FEX;
- Processed several billion dollars in volume;
- Launched Enclave Perps (perps trading products);
- Launched three Alpha Strats (algorithmic trading vaults run by professional trading firms);
- Raised $15 million across pre-seed and seed rounds led by investors such as Blizzard Fund and Ava Labs.
Enclave Markets features
Enclave Markets offers a suite of tools for both retail and institutional traders. Most notably, the platform focuses on:
- Perpetual contracts;
- Spot trading;
- Cross trading;
- Dark pools;
- Alpha Strats trading strategies;
Let’s check each of them out:
1. Perpetual contracts
Thanks to perpetual contracts, Enclave Markets users can trade 25+ digital assets and asset bundles with leverage (up to x10) on the platform’s Encrypted Confidential Marketplace, all without owning the underlying tokens. New assets can be listed in less than 12 hours, which means responsiveness to market trends is more than possible. Naturally, fully encrypted execution ensures no front-running or order spying.
Users can monitor their trades with real-time data feeds and withdraw funds on-chain whenever they wish.
2. Spot trading
Enclave Markets features a Central Limit Order Book (CLOB) spot trading venue. With this feature, traders can buy or sell their tokens directly, without leverage, while enjoying full orderbook execution, trading encryption, and full performance of the platform.
3. Cross trading
Enclave Markets also features a dark pool crossing network. This feature is suitable for traders looking to execute large orders with zero market impact. Orders placed within the network are matched at mid-market prices without broadcasting intent, which ensures no price slippage.
4. Dark pools
With its dark pools, Enclave offers a private and secure environment for buying and selling digital assets. The platform leverages Secure Enclave technology to safeguard user positions and prevent information leakage. In addition, all trades are executed on a hidden central limit order book, which allows users to execute orders without revealing their intentions to the market.
5. Alpha Strats trading strategies
Enclave Alpha Strats. Source: Enclave Markets YouTube channel.
Alpha Strats are algorithmic trading vaults managed by professional hedge funds and trading firms. These vaults allow individual, retail users easy access to more sophisticated trading strategies typically employed by institutional traders.
To make use of Alpha Strats, users can deposit USDC into a vault, which then automatically follows the manager’s trading approach. Alpha Strats can include structured products, quant models, and hedging tactics.
Enclave Intelligence
In addition to the features outlined above, Enclave Markets has announced a new addition to the platform: Enclave Intelligence. Enclave Intelligence will act as a personalized strategy engine that curates trading opportunities tailored to specific user preferences.
In addition, Enclave Intelligence will give users market insights to help them realize their individual trading strategies. For example, the tool can be used to uncover fresh alpha in crypto markets or decode macro events like interest rate shifts and geopolitical tensions.
Enclave Markets has also announced it would venture into real-world assets (RWAs). That is, the team plans to integrate tokenized traditional assets ranging from bonds and stocks to commodities within its permissionless trading framework. The move could bring greater institutional-grade functionality to decentralized finance (DeFi) users seeking exposure to assets beyond crypto.
How does Enclave Markets work?
Individual traders can start with Enclave Markets simply by connecting their wallets (any non-sanctioned wallet, such as MetaMask, can be used). Once connected, users can deposit funds directly from a range of supported blockchains (e.g., Ethereum, Solana, Avalanche), using native USDC for seamless interoperability.
Then, traders can choose between Enclave offerings based on their trading goals and strategies. For direct token swaps, for example, Enclave Spot offers a traditional central limit order book experience. Those seeking leverage, on the other hand, can trade perpetual contracts. Those looking for passive investment options, however, can turn to Alpha Strats, which are algorithmic vaults managed by professional trading firms.
Users can monitor their positions in real time through encrypted data feeds. Given the decentralized nature of the FEX, traders retain full custody and control of their assets and the ability to withdraw funds at all times.
As for institutional users, the platform is available through a high-performance Application Programming Interface (API) or advanced trading interface, which enables seamless integration into existing workflows. Moreover, institutional clients can route large orders through the dark pool to minimize market impact and ensure fair market prices.
Institutions can also deploy proprietary strategies via custom Alpha Strats. The platform likewise provides advanced analytics tools, reporting dashboards, and real-time risk metrics for more effective and secure trading.
“The future of trading isn’t just on-chain – it’s encrypted, high-performance, and permissionless. We’re putting professional-grade execution in the hands of every trader while maintaining the exceptional performance that has made Enclave the platform of choice for serious traders.” — Enclave Markets Chief Executive Officer (CEO) David Wells
Tokenomics
The upcoming native token, ENCL, will serve as a core component of the platform, allowing users to engage with the ecosystem in numerous ways. For example, users will be able to use the token to access loyalty programs and VIP fee tiers, earn rewards while remaining active in their traders, enjoy reduced costs and exclusive benefits, etc.
ENCL holders will also be able to vote on major decisions within the ecosystem, for example, new asset listings or platform features. Finally, the token will incentivize staking and long-term engagement by powering community-building initiatives.
How to get started with Enclave Markets?
To get started with Enclave Markets as an individual trader, follow these steps:
First, head over to the official Enclave Markets webpage and click on the Trade on EnclaveX button (as shown below):
Once you’ve clicked on the Trade on EnclaveX button, a pop-up window will appear, informing you that you’re about to leave the page and go to a third-party website. Simply click Continue to EnclaveX to continue (as shown below):
Then, you will be taken to Enclave’s perpetuals trading platform:
On the trading platform, click on the Sign In button in the upper right corner (as shown below):
Then, you will see another pop-up window allowing you to choose how you want to sign in (as seen below). You can sign in by connecting your wallet, by signing in with your email, or by using your Google account. For the purposes of this review, we will sign in simply by connecting a wallet.
Why choose Enclave Markets?
Large trades can have a significant impact on the market when it comes to digital assets. Namely, when major players enter or exit positions, the sheer volume they handle can result in, say, price slippage or front-running. Such consequences can shift market dynamics and put some traders at a disadvantage.
These issues can be observed most easily in traditional exchanges, which is why Enclave Markets seeks to develop a platform that combines decentralization with end-to-end encryption (the so-called FEX approach). This architecture enables users, including institutional traders, to execute large transactions privately, with even the exchange itself not having access to their data.
This level of privacy is expected to correlate with better performance. In other words, without the risk of front-running or order spying, traders can enjoy fairer pricing and avoid unnecessary volatility. However, it bears mentioning that trades still remain fully auditable, which allows clients to stay compliant with regulatory standards without making any sacrifices to security or confidentiality.
MEV-resistant trading
One of the biggest challenges faced by DEXs today is liquidity, especially when it comes to automated market makers (AMMs), which use algorithmic pricing models to enable trading without relying on a traditional order book. That is, instead of matching buyers and sellers directly, users trade against a liquidity pool funded by other users. In theory, this simplifies decentralized trading, but in practice, it comes with slippage issues.
When liquidity in user-funded pools is low, even smaller trades can result in slippage. What’s more, slippage exposes traders to Miner Extractable Value (MEV) attacks and front-running, further impacting performance.
While CEXs offer deeper liquidity through traditional Central Limit Order Books (CLOBs), they come with custodial risk and limited privacy. An FEX, on the other hand, combines the privacy and self-custody of DeFi with the liquidity and speed of CEXs. As such, Enclave Markets leverages CLOB infrastructure while running entirely within secure enclaves to preserve user anonymity and eliminate front-running.
Comparison with competitors
The theoretical differences between CEXs, DEXs, and FEXs can more or less be summarised with the following chart, with scores presented on a scale from 1 to 10:
| CEX | DEX | FEX | |
| Marketplace confidentiality | 5/10 | 3/10 | 10/10 |
| MEV-protection | 8/10 | 2/10 | 10/10 |
| Decentralization | 2/10 | 10/10 | 10/10 |
| Decentralized custody | 2/10 | 8/10 | 10/10 |
| Price stability | 5/10 | 3/10 | 10/10 |
| Infrastructure composability | 5/10 | 6/10 | 10/10 |
Is Enclave Markets safe?
While Centralized Exchanges (CEXs) remain vulnerable to insider threats, many Decentralized Exchanges (DEXs) struggle with issues such as privacy. To deal with some of these issues, Enclave Markets introduced the idea of a Fully Encrypted Exchange (FEX), which combines the speed and execution quality of centralized systems with the trustless privacy characteristic of DeFi. The Enclave team refers to this approach as Privacy-First DeFi, or PrivacyFi, for short.
The FEX architecture not only encrypts data in transit or at rest but also runs core operations entirely within so-called enclaves, that is, hardware-isolated environments that keep all trading logic, data, and order flow invisible even to the platform itself. This means Enclave Markets offers a zero-knowledge trading platform where neither internal nor external parties can tamper with or monitor user activity.
This model also employs encrypted, private execution, zero front-running, cross-chain support, and professional-grade tooling without sacrificing any privacy. The model also maintains robust safeguards expected by institutional players.
Enclave Markets fees
Enclave Markets operates on a fee-based model and incurs fees, including:
- Trading fees from its FEX and dark pool;
- Perpetual futures trading fees;
- Alpha Strategies performance fees;
- Gas fees from its Layer-1 (L1) chain;
- Premium institutional services for high-volume traders.
Enclave Markets pros and cons
Pros
- Different approach: The FEX model was pioneered by Enclave Markets. As such, it offers a unique approach to trading;
- Institutional solutions: Enclave Markets seeks to accommodate both retail and institutional clients;
- No KYC requirement: Permissionless access enables users to trade anonymously using eligible wallets, which might appeal to more privacy-oriented users;
- No front-running or order spying: Encrypted execution eliminates traditional risks faced by traders on CEXs and DEXs.
Cons
- The platform is not well established: Enclave Markets is a relatively new trading platform, and as such, it does not have the track record you might expect from some other, more mainstream exchanges;
- Limited assets: Since the platform is new, the asset selection is limited as of the time of writing;
- No app: Enclave Markets can only be accessed through the browser, as there are no dedicated iOS and Android mobile apps.
Enclave Markets’ customer support and social media channels
Existing users and potential clients looking for customer support can contact Enclave Markets through the official email address. In addition, the exchange has several social media platforms where users can chat with the community and find timely platform updates:
- Discord: Join the official Enclave Markets Discord server and chat with the community in real time;
- Telegram: You can get in touch with the Enclave Community on Telegram as well;
- X (Twitter): Follow Enclave Markets on X and stay up-to-date with all the relevant news, announcements, and developments;
- LinkedIn: Connect with Enclave Markets on LinkedIn and network with other users while doing so;
- GitHub: Find some source development kits (SDKs) on the Enclave Markets GitHub page.
The bottom line
Enclave Markets offers an innovative approach to crypto trading with its FEX model that combines the privacy and decentralization of DeFi with the speed and functionality of centralized systems. As such, it offers a compelling solution for both retail and institutional traders.
While the platform is still in its early stages, its focus on encryption, cross-chain compatibility, and institutional-grade tools is promising. As the ecosystem grows, Enclave Markets may thus become a more common choice among users seeking security, privacy, and performance in one platform.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about Enclave Market
What is Enclave Markets?
Enclave Markets is a Fully Encrypted Exchange (FEX) platform.
When was Enclave Markets founded?
Enclave Markets was founded in 2021.
What is a Fully Encrypted Exchange (FEX)?
An FEX is a crypto exchange that puts an emphasis on permissionless, decentralized trading and privacy. Unlike CEXs, FEXs do not have access to user data. Unlike DEXs, on the other hand, FEXs offer low-latency, deep liquidity, and institutional-level infrastructure. As such, FEXs combines the privacy of DeFi with the speed and performance of centralized platforms.
Is Enclave Markets safe?
Yes, Enclave Markets is considered a safe platform. Its Fully Encrypted Exchange (FEX) model implies encrypted, private execution, zero front-running, cross-chain support, and professional-grade privacy.
Is KYC mandatory on Enclave Market?
No, KYC is not mandatory on Enclave Market. The exchange is designed as a permissionless platform with a large emphasis on privacy and decentralization.
How many assets can you trade on Enclave Markets?
As of the time of writing, you can trade 25+ assets via perpetual contracts. You can also engage in spot and cross-trading or invest in Alpha Strats.
What are Alpha Strats?
Alpha Strats are automated trading vaults on Enclave Markets managed by professional hedge funds.
Is there an Enclave Markets mobile app?
Currently, Enclave has no mobile app.
