Houdini Swap
  • 🔎Overview: Your Crypto Privacy Guide
  • 🪜STANDARD SWAPS
    • ▪️Wallet Connect
    • ▪️Manual Send
  • 🧙PRIVATE SWAPS
    • ▪️Private Mode
    • ▪️Use Monero
    • ▪️Private Transaction Data
  • ❓FAQs
    • ▫️Do I have to connect my wallet?
    • ▫️How do I find my order details?
    • ▫️What should I do if my transaction shows 'Order Expired' after sending?
    • ▫️What happens if I accidentally sent the wrong currency?
    • ▫️Are Private Swaps truly private?
    • ▫️What KYC and AML requirements are there?
    • ▫️Are Private Swaps compliant?
    • ▫️Is Houdini Swap a crypto mixer?
    • ▫️Staking Program
      • How does $LOCK relate to Houdini Swap?
      • How does Houdini Swap’s Staking Program work?
      • How are staking rewards calculated?
      • How do I unstake?
      • Who receives the rewards from the Withdrawal Penalty?
      • How is Annual Percentage Yield (APY) calculated?
  • 🪙TOKENOMICS
    • ▪️LOCK Token
    • ▪️$LOCK Distribution
    • ▪️$LOCK Staking and Burns
  • 🔒STAKING PROGRAM
  • ☎️CONTACT US
    • ▪️User Support
    • ▪️Partnership Enquiries
  • 📚NOTICES
    • ▪️Privacy Notice
    • ▪️Terms of Service
    • ▪️Compliance Policy
  • 📃WHITEPAPER
    • ▪️Vision & Purpose
    • ▪️Current Landscape
    • ▪️Private Transactions
      • ▫️Semi-Private Transactions
      • ▫️Houdini DEX
    • ▪️Transaction Types
    • ▪️Platform Functions
      • ▫️Why It Works
    • ▪️Integrations
    • ▪️Compliance
    • ▪️Data Retention Policy
    • ▪️Fee Structure
    • ▪️Staking Program
      • ▫️Deflationary Mechanics
      • ▫️Rewards Distribution
      • ▫️Dynamic Rewards
      • ▫️Withdrawal Options
      • ▫️Penalty Distribution
      • ▫️Buybacks and Staking Flow
  • 🐛BUG BOUNTY PROGRAM
  • 💾API DOCUMENTATION
    • Get CEX Tokens API
    • Get DEX Tokens API
    • Get CEX Quote API
    • Get DEX Quote API
    • Post dexApprove API
    • Post dexConfirmTx API
    • Post CEX Exchange API
    • Post DEX Exchange API
    • Get Status API
    • Get Min-Max API
    • Get Volume API
    • Get WeeklyVolume API
    • Changelog
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  1. WHITEPAPER

Platform Functions

Quote Generation

At the heart of Houdini Swap's operational efficiency is our advanced quoting algorithm. This algorithm plays a crucial role in optimizing user transactions by identifying the exchange pair that offers the lowest possible transaction rates.

For every private transaction, the algorithm engages two distinct, non-related exchanges: an intake exchange (referred to as Exchange 1) and an outtake exchange (referred to as Exchange 2) which operate in conjunction with a randomly selected Layer 1. This dual-exchange system in conjunction with a randomized Layer 1 is essential for maintaining the privacy and integrity of each transaction.

Order Flow

The transaction process is initiated through a sequence of API calls orchestrated with each exchange. These API interactions are designed to ensure both efficiency and compliance with anti-money laundering (AML) regulations.


API Call to Exchange 1:

  • Generate Deposit Address: Exchange 1 generates a unique deposit address where the sender is instructed to deposit their tokens. This address is exclusively created for the transaction, enhancing security and privacy.

  • AML Screening: The exchange conducts AML screening to ascertain that the source of the funds is not connected to any criminal activities.

  • Randomized Layer 1: The deposited tokens are swapped into a randomly selected Layer 1 coin to maintain transaction anonymity.

  • Send to Exchange 2: The randomized Layer 1 coin is subsequently sent to a wallet address generated by Exchange 2, completing the first phase of the transaction.


API Call to Exchange 2:

  • Generate Deposit Address for Randomized Layer 1 Coin: Exchange 2 generates a unique deposit address for receiving the randomized Layer 1 coin from Exchange 1.

  • AML Screening: Similar to Exchange 1, Exchange 2 performs AML screening to ensure that the destination wallet is not involved in illicit activities.

  • Swap Back to Specified Token: The randomized Layer 1 coin received is then swapped into the token specified by the user.

  • Send to Destination Address: Finally, the specified token is sent across its native Layer 1 chain to the sender’s designated destination address.


The order is complete once Exchange 2 successfully sends the receiver’s tokens to the destination wallet. This dual-exchange system in conjunction with a randomized Layer 1, ensures that the link between sender and receiver is severed, reinforcing the privacy of the transaction.

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Last updated 1 year ago

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