Why do we need a privacy-centric dex?

And what privacy-relevant features do we have in mind?

Ethereum is a dark forest...

• Since January 2020, cumulative miner extractable value, or MEV, has reached a total of $761M on Ethereum alone.

  • *MEV, as a measure of the profit that miners can make through their ability to arbitrarily include/exclude/re-order transactions within the blocks they produce, is mainly prevalent as front-running attacks on decentralized exchanges, which is becoming a billion dollar problem, together with millions of dollars lost in gas fees.

• The U.S. infrastructure bill’s crypto provision is intended to expand the Tax Code's definition of "broker" to capture non-custodial actors, including the $53 Billion DEX markets, forcing them all to KYC users.

• Sophisticated tools to track wallet movements in a more granular and organized fashion, such as Nansen, are emerging, which diminishes a trader’s alpha by having their trading strategies exposed.

Above are only examples of DEX exploits from a fully-transparent ledger when privacy is deprioritized.

Inheriting default programmable privacy, Venice is able to protect its users from such malicious exploits including front-running attacks/GPA-style MEV, transaction linkability, identity traceability, and so on.

Venice: Illuminating the Dark Forest

Venice’s beta implementation will leverage Findora's privacy routing SDK, using cryptography algorithms like atomic swaps and anonymous transfers to create ZK synthetic assets, which enables a “decontamination” process to help users establish anonymous on-chain identities.

Privacy Routing SDK

For more details on the Privacy Routing SDK, please go to Findora's documentation.

You can use privacy-routing-sdk to transfer any FRC-20 asset (including FRA) on Findora Smart Chain from Address A to Address B, and remove the link between the two addresses. Both addresses can be classical user address or contract address

Privacy Routing Overview

Below is a visual representation of the major flows when routing transactions which begins on the Findora EVM wallet through the Findora UTXO layer (to break the link between the sender and final Findora EVM wallet receiver).

Privacy Routing SDK Process Flow

Here is the process flow using the SDK's APIs:

Privacy Routing API Call Flow

Asset Type on Findora Native Chain

• BAR

  • Transparent Asset

• ABAR

  • Shielded Asset ({amount, asset type, address} masked)

Simple Steps to Use

First clone and add the SDK to your project.

Import SDK

// Use appropriate ways to importing the privacy-routing-sdkimport { Sdk } from "privacy-routing-sdk";const { Sdk } = require("privacy-routing-sdk");

Initiate SDK

import { Sdk } from "privacy-routing-sdk";​const ENV_CONFIG = {hostUrl: "findora RPC",};​// Initiating the SDK configurationawait Sdk.init(ENV_CONFIG);

Supported Tokens

• FRC20 (FRA token)

• FRC20 (Customized token)

  • any FRC20 token on Findora EVM

Findora EVM -> Findora EVM Transaction

Using privacy-routing-sdk for a complete confidential cross chain transaction by the following steps,

• (1) From EVM compatible chain to Findora Native Chain

  • Bridging FRC20(FRA token) to Findora Native Chain

  await evm.transfer.fraToBar({bridgeAddress: simBridgeAddress, // bridge contract addressrecipientAddress: "0x.....", // wallet account addressamount: "100", // send amount});

  • Bridging FRC20(Customized token) to Findora Native Chain

  /*ParametersbridgeAddress: simBridge contract addresstokenAddress: FRC20 token addresstotalAmount: send amountrecipientAddress: wallet account address*/await evm.services.approveToken(tokenAddress, simBridgeAddress, tokenAmount);return await evm.transfer.frc20ToBar({bridgeAddress: simBridgeAddress,recipientAddress,tokenAddress,tokenAmount,});

• (2) Converting Assets from BAR to ABAR in Findora Native Chain （entering confidential cycle）

import { findora } from "privacy-routing-sdk";​/**Parameterssids: consumable utxo sids*/const walletWrap = await findora.keypair.getWallet();findora.transfer.barToAbar(walletWrap, sids);

• (3) Converting Assets from ABAR to BAR in Fidnora Native Chain （leaving confidential cycle）

import { findora } from "privacy-routing-sdk";​/**Parameterscommitments: consumable Abar utxo sids*/const walletWrap = await findora.keypair.getWallet();findora.transferabarToBar(walletWrap.anonWallet,walletWrap.walletEnd,commitments);

• (4) Bridging from Findora Native Chain to EVM Compatible chain

  • Bridging FRC20 (FRA token) to Findora EVM

  import { findora } from "privacy-routing-sdk";​const walletWrap = await findora.keypair.getWallet();await findora.transfer.barToEVM(walletWrap.walletEnd,"100", // token amountrecipientAddress, // recipient's address"","",false);

  • Bridging FRC20 (Customized token) to Findora EVM

  import { findora, evm } from "privacy-routing-sdk";​const walletWrap = await findora.keypair.getWallet();const assetCode = await evm.services.getAssetCode(prismBridgeAddress,tokenAddress, // FRC20 token addressfindoraNetworkRpcUrl);​await findora.transfer.barToEVM(walletWrap.walletEnd,"100", // token amountrecipientAddress, // recipient's addressassetCode,"",false);

Venice: What's Next?

2023 H1

• MVP Launch on Findora Mainnet

• Bridge Integration to Ethereum/BNB Chain/Polygon

2023 H2

• V1 launch integrating Findora's Privacy Routing SDK to provide fundamental privacy protection (masks users' address info), i.e. fully-anonymous privacy support utilizing “Triple Masking” with efficient implementation of Turbo-PLONK and Multi-Party Computation

• Bridge Integration to Ethereum/BNB Chain/Polygon for cross-chain private swaps and liquidity provision

• VENI token launch to support governance voting and yield farming

2024

• V2 launch w/ front-running resistance, utilizing advanced zero-knowledge proofs supported pre-compiled smart-contracts to encrypt inputs to a smart contract (transaction amount & asset type)

• Expand multi-chain support with trustless bridge integration to more ecosystems for cross-chain private swaps and liquidity provision

• Introduce limit order functionality to support customizable liquidity positions

• Improved market making algorithms to support single-sided liquidity provision and staking rewards auto-compounding

2024

• Use pre-compiled smart-contracts to encrypt all inputs to a smart contract (transaction amount, asset type, recipient address, and sender address)

• Improved market-making algorithm with stablecoin swap support to reduce slippage and improve liquidity efficiency

• introduce customized private money market

  • Leveraged lending to maximize liquidity efficiency and yield aggregation within Venice frictionlessly

• DeFi & NFT assets collateralization to bridge traditional finance (TradFi) to the metaverse while preserving user privacy

• Introduce launchpad for new project incubation and decentralized fundraising on Findora to further bootstrap the Venice ecosystem