▪️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.

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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.

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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.

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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.