diff --git a/domains/internet-finance/confidential-computing-reshapes-defi-mechanism-design.md b/domains/internet-finance/confidential-computing-reshapes-defi-mechanism-design.md
new file mode 100644
index 000000000..792090d74
--- /dev/null
+++ b/domains/internet-finance/confidential-computing-reshapes-defi-mechanism-design.md
@@ -0,0 +1,69 @@
+---
+type: claim
+domain: internet-finance
+description: "MPC-based confidential computing (Arcium) enables mechanism designs impossible with transparent blockchains — private orderbooks, sealed-bid auctions, and encrypted governance votes — without hardware trust assumptions"
+confidence: experimental
+source: "External contributor; primary evidence: Arcium Mainnet Alpha launch (Feb 2026), Umbra $155M ICO commitments on MetaDAO, C-SPL token standard on Solana Devnet"
+created: 2026-04-27
+secondary_domains: [ai-alignment, mechanisms]
+cross_references:
+  - target: "[[amm-futarchy-reduces-state-rent]]"
+    relation: challenged_by
+  - target: "[[metadao-autocrat-implementation]]"
+    relation: related
+---
+
+# Confidential Computing Reshapes DeFi Mechanism Design
+
+This note argues that MPC-based confidential computing layers (specifically Arcium on Solana) introduce a new design space for financial mechanisms that transparent blockchains structurally cannot support.
+
+## Core Argument
+
+The codex extensively maps mechanism design (futarchy, bonding curves, AMM governance) but implicitly assumes all state is public. Arcium's Multi-Party eXecution Environments (MXEs) break this assumption by enabling:
+
+1. **Encrypted orderbooks** — dark pools without centralized trust (DarkLake on Arcium)
+2. **Sealed-bid auctions** — eliminating frontrunning and MEV extraction at the protocol layer
+3. **Confidential governance** — vote encryption preventing last-minute strategic voting
+4. **Private balances with public compliance** — C-SPL tokens encrypt amounts while preserving auditability
+
+## Evidence
+
+- **Production infrastructure**: Arcium Mainnet Alpha live on Solana (Feb 4, 2026), not theoretical
+- **Market validation**: Umbra (privacy DeFi layer) received $155M in ICO commitments on MetaDAO — the same MetaDAO this codex treats as a proven mechanism
+- **Ecosystem depth**: 25+ projects including Jupiter, Orca, io.net integrating Arcium
+- **Technical moat**: Acquired Inpher (Web2 MPC pioneer, $25M+ raised from JPMorgan/Amazon), open-sourcing patents
+- **Security model**: Cerberus protocol guarantees correctness with just one honest node — no TEE hardware assumptions (unlike Nillion, Secret Network)
+- **Solana-native architecture**: Uses Solana for DA and consensus, computation happens off-chain in MXE clusters, results verified on-chain via CPI callbacks
+
+## Why This Matters for the Codex
+
+If confidential computing is production-ready on Solana, several existing claims need re-evaluation:
+
+- AMM futarchy claims assume transparent price discovery is optimal — but sealed-bid mechanisms may produce better price signals by eliminating strategic behavior
+- Governance claims assume public voting — but encrypted votes eliminate last-minute coordination and vote-buying visibility
+- Capital formation claims ignore that confidential token standards (C-SPL) change liquidity dynamics entirely — institutions require privacy for large positions
+- MEV extraction claims become partially obsolete when orderflow is encrypted end-to-end
+
+## Competitive Landscape
+
+| Protocol | Approach | Limitation Arcium Solves |
+|----------|----------|--------------------------|
+| Nillion | TEE-based | Hardware trust assumptions, side-channel vulnerability |
+| Secret Network | L1 with TEE enclaves | Separate chain, no Solana composability |
+| Oasis Network | L1 with TEE | Same isolation problem |
+| FHE solutions | Homomorphic encryption | Performance constraints, no multi-party capability |
+| ZK solutions | Zero-knowledge proofs | Cannot enable shared private state between parties |
+
+## What Would Validate This Claim
+
+- Umbra TVL exceeding $100M within 6 months of public launch
+- C-SPL adoption by major Solana protocols (Jupiter, Raydium, Marinade)
+- Dark pool volume exceeding transparent DEX volume for institutional pairs
+- Governance protocols adopting encrypted voting (MetaDAO integrating Arcium for sealed proposals)
+
+## What Would Falsify This Claim
+
+- MPC latency proves incompatible with DeFi time constraints at scale
+- Regulatory classification of confidential tokens as money transmission tools
+- Arcium mainnet instability, security breach, or failure to decentralize beyond permissioned clusters
+- Transparent mechanisms prove empirically superior even when privacy is available (agents prefer public commitment)