August 22, 2023 at 14:53 GMTModified date: August 22, 2023 at 14:53 GMT
August 22, 2023 at 14:53 GMT

Elusiv launches new feature for private token swaps on Solana

Encryption protocol Elusiv is now available on Solana, pioneering private exchange of decentralised assets on the blockchain.

Blockchain. Pic: Unsplash

Encryption protocol Elusiv is now available on Solana blockchain, pioneering private exchange of decentralised assets on the blockchain. The feature has been made available on the Elusiv web app.

The newly introduced “private token swaps” feature will allow users to swap between a number of assets without revealing any identifying information about them. Currently, anyone can see most token swaps and trades that happen on decentralised exchanges (DEXs) as they are entirely transparent. This includes everything from a user’s balance to their trade history.

Private token swaps come to the rescue here by evading a significant amount of counterparty risk by encrypting a user’s public key through the use of zero-knowledge proofs. This would ensure that the amounts swapped or traded within users’ wallets cannot be connected to their actual wallet addresses. Elusiv heralded its launch as a feature that would secure one of the “most fundamental actions in all of DeFi”.

The initial rollout will support Orca, Marinade Finance, Raydium Protocol, Lido Finance, $USDC and $USDT. The feature will be fundamental in instilling more security for DeFi users in the ecosystem, creating a “ripe environment for growth and innovation”, said the protocol in its announcement.

Co-founder of Elusiv, Julian Deschler, commented on the same saying: “Users and seasoned traders alike can hide their transaction history, trading strategies, and assets by decoupling token swaps and public keys, paving the way for open and fair DeFi.”

Elusiv will power these swaps with the help of Jupiter API, which is one of the leading swap aggregators of Solana. Users will therefore get to access deep liquidity without a trade-off for privacy.

Before the introduction of this feature, users had to expose their public key in order to deposit funds into a private balance before sending or swapping tokens. The lack of privacy often resulted in users being targeted based on their portfolio (token balances) and trading history. Elusiv called this an “inherent weakness” that is one of the leading causes of arbitrage and manipulation. It also pulled down DeFi in enjoying mainstream adoption as it was positioned as high-risk for users.

Now the new procedure includes the use of a temporary key, acting as a burner account, which disconnects the link between a user’s public key and encrypts the source of the transactions. The roll out of private token swap feature on Solana also reinforces the blockchain’s position as a chain primed for mass adoption, where new users can begin their Web3 journeys safely.

Co-founder of Solana, Anatoly Yakovenko, commented on the launch saying: “Elusiv Privacy represents the future of blockchain transactions — achieving a seamless blend of zero-knowledge privacy, efficiency, and instantaneous settlement.”