Shadow Accounts are persistent, pseudonymous Starknet addresses, one per user and dapp, for holding DeFi positions over time. STRK20 lets a user fund one from a shielded balance and route DeFi calls through it; the public chain does not directly link the Shadow Account to the user’s main wallet. The address is deterministic, has no keys of its own, and calls execute through the anonymizer. STRK20 docs
The privacy is about the wallet link, not the DeFi activity: the Shadow Account’s address, balances, transactions, contract calls, positions, amounts and timing remain visible and may help observers correlate activity. The Defiant says the balances, amounts and contract calls remain public; STRK20’s overview also says the account’s balances, calls and positions are public. STRK20 overview
StarkWare announced the feature as live on Starknet on October 13; Starknet said the first integration would launch the next day. StarkWare · Starknet