Hey guys
I am happy to share that Incognito’s community decided to make DAI a default currency on the Incognito DEX. During the last 12 months we were balancing between (USDT, USDC, DAI) it was a must-have for the DEX to raise up, but for now when we have $13M in liquidity pools and $25M+ in trading volume we feel that we are strong enough to start the transition.
Before we start a campaign about this, I wanted to collect feedback from you guys, to understand of what is okay, and what should be improved.
Here is some more info about who we are and what we do:
A quick monthly update.
Liquidity pool with DAI touching $1M It’s awesome progress, still a bit behind USDT/C, but if we keep the current rythm we should catch those pairs in upcoming months
I don’t think it’s specific for DAI, but yield, safety, and simplicity.
Yield wise, I saw 13% for DAI which is certainly competitive. High yield mining incentives have historically been good at attracting liquidity.
Safety and simplicity are larger road blocks for me. Not to say there is anything dangerous looking about your project, but being in the privacy space I assume you and your customers would agree: suspicious until proven otherwise.
Off the bat, not being able to use metamask makes you more complicated than pretty much all other DeFi apps. Add on to this the incognito bridge and other chains, there’s a lot going on.
Two questions for you:
why would someone use this over tornado.cash for private transactions?
are private swaps needed? what’s wrong with privately funding an account with ETH->swapping to DAI on uniswap?
Hi, @hyman thank you for the advice. We try do not make to much noise around high APY that burn out within a month. With 13% and our target of 5M in the liquidity pool, we could make it sustainable for the long run.
Thats useful feedback, we are going to launch a tool in January that wraps Metamask and allows you to use Incognito mode for Metamask itself and other Ethereum based Dapps. I Will keep you posted about the progress.
Let me try to answer with an example. I assume you browse hundreds of websites daily. If there a particular website you don’t want to keep track of in-browser history you can manually remove such record (as use tornado to anonymize a particular transaction) or you can turn incognito mode on your browser and surf around without leaving a trace (as use Incognito mode for your crypto)
Here is a very quick comparison just to show the main difference
Incognito
Tornado
Implementation
off-chain
on-chain
Shielding fee
one time
each time
Anonymity set
Ring CT, Confidential Assets
mixing TXs
Waiting period
≈ 5-10m (upon TX confirmation)
Might take days (depends on volume)
Amount limitations
No limitation (from $0.1 to $100M+)
100, 1000 DAI
I don’t want to say that Incognito is better or worse than Tornado we just build different features
Obviously, the differences in liquidity pools and trading volume are not comparable
btw, we just launched Incognito mode for Uniswap —>
On another side
If you compare trading volume Incognito with Bisq - the most known privacy DEX, you will see
Average daily volume
Bisq
Incognito
Jan 2020
$150k+
$5k+
Jun 2020
$200k+
$50k+
Dec 2020
$180k+
$200k +
Our bet
DeFi industry growth rate is more than 10x in 2020. We believe that if DeFi and crypto does continue eat the world there will be a real shift in thinking towards privacy. It will be more convenient to use a privacy wallet than to generate a new ETH address or use a mixer each time you would like to make a transaction.
It’s awesome progress, still a bit behind USDT/C, but if we keep the current rythm we should catch those pairs in upcoming months 
