Uniswap acts as a huge player in the decentralized financial, or DeFi, niche of the crypto space. Incognito, a blockchain focused on crypto privacy, has reopened pUniswap, a way to privately participate in Uniswap.
Joining the DeFi ecosystem often means interacting with the Ethereum blockchain as many platforms operate on its network. That being said, some people value privacy. Without pUniswap, transactions on the DeFi exchange can be traced to specific wallet addresses.
“Cross-chain fees have been integrated with this second iteration [into] pool selection, to make sure you get the best bang for your buck when trading, ”detailed the Incognito blog post, adding:
“Incognito’s low rates mean that for smaller transactions, the pDEX will be your best value. But until pDEX liquidity rivals Uniswap, your best result could be with pUniswap for larger trades. “
Incognito includes a feature that helps users know whether to use pDEX – Incognito’s native decentralized exchange – or pUniswap. However, how exactly does Incognito provide private Uniswap usage? “PUniswap uses Incognito’s smart foreclosure contract to communicate with Uniswap, with Incognito acting as a trusted proxy,” the post said. “This allows anyone to perform swaps without interacting directly with the Ethereum blockchain.” In fact, on Ethereum, it would look like all Incognito users are transacting from the same wallet.
Regulations have emerged as a concern for DeFi in recent months, as the boom somewhat resembles the initial coin offering days of 2017, which eventually ended in regulation-led demise. Making the niche private could be a double whammy for regulators, recently was interested in cracking privacy asset Monero.