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System Architecture

Houdini acts as an intelligent routing layer that connects users with the best liquidity sources across centralized exchanges (CEXs) and on-chain DeFi protocols (DEXs, bridges, and intent protocols).

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High-Level Flow

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Key Components

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1. Your Application (Frontend)

Your application integrates with Houdini through:
  • REST API: Direct HTTP API calls for full control
  • Widget (iframe): Embedded swap interface with minimal integration
  • Widget SDK coming soon for deeper customization

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2. Houdini Routing Engine

The core intelligence layer that:
  • Analyzes available routes across CEXs and DEXs
  • Calculates optimal paths based on amount, fees, and speed
  • Handles route-specific logic and orchestration
  • Manages order lifecycle and status updates

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3. CEX Partners

Integrated centralized exchanges that enable:
  • Private Swaps: Multi-hop routing through exchanges for maximum privacy
  • Standard Swaps: Single CEX hop for faster execution
  • Compliance and AML screening at partner level
  • Deep liquidity for major trading pairs
Privacy Model: When using CEX routes, funds briefly touch partner exchanges. Each CEX handles its own AML/KYC requirements. Houdini itself is non-custodial and doesn’t hold funds long-term.

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4. On-Chain DeFi Protocols

Direct blockchain integration with:
  • DEX aggregators and AMMs (Uniswap, etc.)
  • Cross-chain bridges (Debridge, Mayan, etc.)
  • Intent-based protocols (Cowswap, Sodax, etc.)

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5. Destination Wallet

Final delivery of swapped assets to:
  • User-specified wallet address (EOA)
  • Smart contract addresses (supported, but users must verify correctness)
  • Any supported blockchain network
Contract Addresses: While contract addresses are allowed as destinations, users must carefully verify they’re sending to the correct contract that can handle the token type. Sending to an incorrect contract may result in permanent loss of funds.

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Routing Strategies

Houdini supports multiple routing strategies that can be used independently:

Private Routing

Multi-hop CEX routing for maximum privacy. No wallet connection required.

Semi-Private

Single CEX hop balancing privacy and speed.

DEX Routing

Transparent on-chain swaps through DEX aggregators.

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Security & Custody Model

Important: Houdini is an aggregator and affiliate partner, not a custodial exchange.
  • Non-Custodial: Houdini doesn’t hold user funds long-term
  • Partner Routing: CEX routes involve brief custody by partner exchanges
  • Smart Contracts: DEX routes use audited smart contracts
  • No Registration: Most flows don’t require user accounts or KYC
  • Partner Compliance: CEX partners handle their own AML/compliance screening

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Next Steps

Get API Keys

Set up authentication and get your API credentials

Core Concepts

Deep dive into routing types and order lifecycle