▪️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). This dual-exchange system 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.
Token Swap to Privacy Coin: The deposited tokens are then swapped into a privacy coin to maintain transaction anonymity.
Send to Exchange 2: The privacy 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 Privacy Coin: Exchange 2 generates a unique deposit address for receiving the privacy 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 privacy coin received is then swapped into the token specified by the user.
Send to Destination Address: Finally, the specified token is sent 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 two-step process, involving two separate exchanges, ensures that the link between sender and receiver is severed, reinforcing the privacy of the transaction.
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