According to Vitalik Buterin, privacy within DeFi applications provides essential protection against frontrunning, liquidation sniping, hacking, and physical coercion (source: @VitalikButerin, June 4, 2025). He emphasizes that privacy features go beyond basic transactions, offering traders greater security and reducing risk exposure. This underlines a growing trend for DeFi projects to integrate advanced privacy protocols, which directly impacts trading strategies, liquidity provision, and the overall competitiveness of DeFi platforms in the crypto market.