Payy Network has launched a privacy-enabled EVM-compatible layer-2 on Ethereum, allowing ERC-20 transfers to be private by default. Users can utilize existing wallets like MetaMask without modifications, as the network introduces a chain-native privacy pool and offchain Privacy Vaults. This setup enables applications to balance privacy, compliance, and transaction visibility. Targeting crypto users and fintech firms, Payy aims to bootstrap the network with 100,000 users and stablecoin partners at launch. The network's architecture allows for private transfers within a privacy pool, while smart contract interactions trigger withdrawals to fresh addresses. Offchain Privacy Vaults store transaction data for compliance purposes, configurable through RPC URL parameters. The launch comes amid discussions on Ethereum's layer-2 progress, highlighted by Ethereum co-founder Vitalik Buterin's comments on the tension between layer-2 interoperability and mainnet scaling. Payy's initiative marks a significant step in enhancing privacy on Ethereum's network.