In today’s increasingly digitized world, privacy and security concerns have become paramount in the management of digital assets. Centralized exchanges (CEXs) have long been the dominant players in the market, but they come with inherent vulnerabilities. The FTX collapse last year, which resulted in the loss of billions of dollars, is a stark reminder of the risks associated with centralized systems.To address these issues in real trading, we aim to develop PrivX, the first-of-its-kind DEX with full privacy protection on Aleo. PrivX comes with several primary strengths that make them ideal for this purpose.
- Ownership Protection：Decentralized finance (DeFi) has transformed how we manage our money, providing us with the ability to lend, borrow, trade, and earn interest on our assets without intermediaries. This has resulted in the rise of decentralized exchanges (DEXs), which prioritize user ownership protection. By using DEXs, users have complete control over their assets while smart contracts provide secure ownership and prevent exploitation or manipulation by unauthorized parties. DEXs offer a transparent, secure, and decentralized platform for asset trading, with no need for intermediaries. This control allows users to take charge of their financial future while benefiting from the increased privacy, security, and trust offered by DEXs.
- Privacy Protection：Privacy remains a major hurdle facing DeFi today. This is especially problematic on decentralized networks, such as DEX, where all trading activities can be easily observed. This poses a challenge for those who prioritize anonymity and privacy in their trading practices. Enter PrivX — our innovative solution built on top of Aleo that enables private trading across decentralized networks. With PrivX, we make trading with privacy a reality, providing our users with the anonymity and security they demand.
- Shared Liquidity：While DEXs have the ability to address asset ownership to some degree, it can also negatively impact the liquidity of those assets. To combat this issue, our approach involves incentivizing and subsidizing users to share liquidity, ultimately resulting in mutually beneficial outcomes. Our goal is to encourage liquidity sharing and achieve optimal results for all parties involved.
The Perfect Combo
PrivX has selected Aleo as the development platform for our innovative DEX, primarily due to Aleo’s exceptional on-chain privacy protection. Its bleeding-edge technology allows users to conceal account balances, transaction activities, and other sensitive information while executing transactions, thereby ensuring robust privacy protection. No one, not even the exchange, can see what you’re buying or selling.
Decode PrivX Design
As a decentralized order book DEX built on Aleo, PrivX utilizes a hybrid approach that combines on-chain and off-chain components for efficient transactions. Here are some key components of our current architecture design:
- Off-chain Server (Temporary): During the testnet phase, we will use an off-chain server for order matching. However, as Aleo’s on-chain infrastructure progresses, we will migrate order placement and matching logic on-chain for a fully decentralized service.
- Decentralized Settlement Matching (Eventually): As mentioned above, once the Aleo network upgrade is complete, we will integrate order matching into on-chain smart contracts. This will ensure transparency and accessibility of transaction data and matching logic, fostering a fair and decentralized service.
- Efficient Validation and Privacy Protection: we utilize Aleo’s ZEXE protocol to achieve efficient validation and user privacy protection. The protocol employs off-chain computing techniques to verify transactions on-chain, enhancing the system’s overall performance. Our technology offers selective privacy protection for users and transaction data, surpassing the capabilities of ZCash’s privacy protocols.
What to expect?
To prevent liquidity shortages, PrivX will incentivize orders that facilitate transaction completion in the coming stages. Specific parameters will be disclosed in greater detail in the upcoming phases.
At the very first stage, we aim to accomplish the development of the foundational framework and spot trading, which encompasses a range of essential features. These features include, but are not limited to:
- Comprehensive architectural design
- Implementation of spot trading capabilities
- Integration of advanced privacy features
- Introduction of new token standards
For further details regarding our roadmap, we encourage you to check out our official documentation.
Join the Waitlist
Don’t miss your opportunity to be among the first to experience the unparalleled on-chain privacy protection of PrivX, the first DEX built on Aleo. Get ready to be a part of our upcoming platform launch! Our waitlist application form will soon be released and we invite all interested individuals to apply. Stay informed and connected with us by following our Twitter for the latest updates on our product news and exciting developments!
