A report said that Uniswap serves as a massive player in the decentralized finance (DeFi), in the crypto space.
It has been reported that Incognito, a blockchain focusing on crypto privacy, has reopened pUniswap, a way to participate on Uniswap privately.
What’s better than Uniswap and privacy? How about both at once. pUniswap 2.0 lets traders do their thing without leaving a trace of their transactions. https://t.co/4uklGPMGKT — Cointelegraph (@Cointelegraph) December 11, 2020
However, Incognito announced in a blog post:
“Uniswap, Ethereum’s largest DEX, just went Incognito. Again.”
Aimed at enhancing the project, Incognito put pUniswap on hold back in September.
The report said that participating in the DeFi ecosystem often means interacting with the Ethereum blockchain, as many platforms operate on its network. That said, some folks value privacy. Without pUniswap, transactions on the DeFi exchange can be traced back to specific wallet addresses.
The Incognito blog post stated:
“With this second iteration, cross-chain fees have been integrated [into] pool selection, to make sure you get the best bang for your buck when trading. Incognito’s low fees mean that for smaller trades, the pDEX will be your best value. But until pDEX liquidity rivals Uniswap, your best outcome may be with pUniswap for larger trades.”
Likewise, Incognito includes a function that helps users know whether to use pDEX, Incognito’s native decentralized exchange, or pUniswap.
The post explained:
“pUniswap uses Incognito’s shielding smart contract to interact with Uniswap, with Incognito acting as a trustless proxy. This enables anyone to perform swaps without having to directly interact with the Ethereum blockchain.”
Thus, on Ethereum, it would basically look as if all Incognito users are transacting from the same wallet.