Elusiv Launches Private Swaps on Solana
Today, we are excited to announce that private token swaps are live in the Elusiv WebApp. This means that you can swap between a number of assets without revealing any identifying information about yourself. This is a first for Solana, infusing the beginnings of private DeFi in the ecosystem, bringing better security guarantees for users and traders.
Why private token swaps?
Current decentralized exchanges (DEXs) are entirely transparent. Any third party can see everything from a user’s balance to their trade history. Private token swaps circumvent a significant amount of counterparty risk by encrypting a user’s public key. A user wanting to swap assets can do so with complete privacy, as token pairs and amounts can never link to a user’s wallet address. This increases users’ security, especially those making frequent swaps or exchanging large quantities. Furthermore, profit and loss fluctuations and trading strategies can’t be linked to a wallet, establishing better conditions for traders wanting to keep their identities private.
Understanding private token swaps
To enable private token Swaps, Elusiv uses temporary keys to break the link between a user’s public key and their transaction. After a user initiates a token swap via the Elusiv Webapp, a temporary key pair is generated, which will be used as the secondary signer of the transaction. The input token and SOL (for fees) are sent to the temporary key pair from there. The output token is received, and the user’s private balance is topped up.
By unlinking the user’s public key and the swap transaction, Elusiv enables complete user privacy. The temporary key pair acts as the ‘sender’ of the transaction, effectively removing any association with the user’s original public wallet address. After the user’s private balance is topped up, they can send tokens from their private balance to any Solana wallet without revealing their public key.
Elusiv’s swaps will be powered by the Jupiter API, Solana’s leading swap aggregator, with the best price and overall UX. Users can now access deep liquidity without a tradeoff for privacy.
The beginning of Private DeFi on Solana
Currently, most token swaps and trades happen in the public eye. DEXs, across different ecosystems, suffer from being transparent by default. Although DeFi has revolutionized how assets trade, the lack of privacy often leads to users being targeted based on their portfolio (token balances) and trading history. This inherent weakness is one of the leading causes of arbitrage and manipulation. As a result, DeFi is often positioned as high-risk, hindering mainstream adoption.
Private token swaps represent a vital foundation for the future of DeFi on Solana and beyond. This fundamental feature instills more security for DeFi users in the ecosystem, creating a ripe environment for growth and innovation. As a first for Solana, it also reinforces Solana’s position as a chain primed for mass adoption, where new users can begin their Web3 journeys safely.
More to come!
Privacy is a cornerstone for blockchains to thrive. We are excited about what this means for the entire Solana ecosystem and the future of DeFi. Follow along as we build next-generation privacy features and tools empowering the new digital paradigm.
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