Privacy Preserving Decentralized Exchange and Automatic Market Maker

We aim to build a genaralized version of P2DEX, combining it with the advantages and opportunities of AMMs, while keeping the decentralization, which allows us to facilitate cross-chain exchanges while obtaining theft and front-running prevention, along with auditability. We investigated an efficient construction of privacy preserving smart contracts where all transactions and data in inputs and outputs of the smart contract remain private. This includes both the amounts of funds transferred to/from the smart contract and other data given to the smart contract (or later output as the result of an execution).

We constructed Eagle, a privacy preserving smart contract based on Multiparty Computation (MPC) and confidential transactions whose values are hidden in Pedersen commitments. In this construction, the MPC is used to compute only the original function that the smart contract should compute, without any extra computation needed to generate/verify transactions or any other cryptographic artefacts. Confidential transactions ensure that the amounts of each transaction remain private and we construct a protocol for inputting these values into the MPC computation without revealing them to any of the parties.