The first step of the process is depositing funds into the Void Anonymity Pool. Once this is done you will be provided with a cryptic phrase. Make sure to save this as it will be used later to withdraw your funds.
There will be set amounts for the deposits, which is essential to reaching our goals of financial anonymity.
OSMO Deposits: 100 1,000 10,000 ATOM Deposits: 10 100 1,000 USDC Deposits: 100 1,000 10,000
The set deposit sizes helps uniformity within the pools which dramatically reduces the chance of your funds being followed. A string of decimal points on the end of your deposited amount could potentially serve as an identifying feature which would cancel out the other measures in place to preserve privacy.
The cryptic phrase will be generated and secured using ZK-snarks, this grants the user peace of mind, as only the depositor's wallet will have access to the phrase. By default users will have access to the cryptic phrases for any of their deposits when logged in to the associated wallet. For added security users will also have the option to view their secret phrase only once.
When deposits are made, they are pooled together in one smart contract. Since all deposits made are of the same amounts, it is extremely difficult to determine the origin wallet of the funds. The longer you keep your transaction in the pool, the more difficult it becomes to trace who it belongs to as more deposits and withdrawals pass through. The total TVL in the pools, as well as the amount of withdrawals and deposits after depositing are also factors that benefit anonymity.
There will be incentives going towards all the deposits in the pools which will further incentivize funds to be held in the pools for a longer period of time. All pools will earn a portion of the reserved $VOID rewards, the ratio of which will be a variable up for regular vote within the DAO. These pools will also have the option to be deployed into a yield-bearing strategy.
The initial yield bearing strategies are still to be determined on Osmosis. One idea that has become popular within our team is that by using the coming interchain security technology, assets within the Void Anonymity Pools will be able to be staked natively with the respective chains, earning staking rewards and also securing the networks.
Once your funds have been in the pool for an adequate period of time, the next step is to withdraw them into your chosen wallet. All that is required is to input a wallet address of your choosing, add the cryptic phrase you were provided with when the deposit was made, then accept the transaction. The gas owed on this transaction will be paid through a relay which means the receiving wallet can be completely unfunded. The funds the new wallet receives will be completely unassociated with any previous wallets, any on-chain links will be broken.
Upon withdrawal a base fee of 0.5%* will be paid to Gov DAO stakers. This fee can be negated by staking 10,000* VOID in the Gov DAO pool.
*These are the initial amounts, this is open to change via the DAO