Platform Functions

Last Update: 3/27/2025

Hydra Swap is powered by a purpose-built infrastructure that blends high-performance transaction routing with privacy-first architecture. Behind the scenes, a series of intelligent platform functions orchestrate every swap to ensure maximum efficiency, compliance, and anonymity—without sacrificing speed or user control.

1. Smart Quote Generation At the core of Hydra Swap’s transaction engine is our real-time quote algorithm, which scans and compares rates across a broad network of decentralized exchange partners. For every private transaction, the system identifies the most cost-effective swap route across two distinct, non-custodial exchanges, paired with a randomized Layer 1 blockchain. This dynamic routing model ensures users get the best possible deal, while maintaining the full privacy integrity of their transaction. By constantly evaluating market liquidity and transaction fees in real time, Hydra Swap delivers optimized, low-cost, and private swaps—automatically.

2. Transaction Order Flow Hydra Swap executes transactions through a secure and structured process using direct API integrations with partner exchanges. The order flow is broken down into two phases: Intake (Exchange 1) and Outtake (Exchange 2). Phase 1: Exchange 1 (Intake)

• Deposit Address Generation: A unique, one-time-use wallet address is created for the user to initiate the transaction, minimizing traceability. - AML Compliance Screening: The exchange automatically screens the funds to ensure compliance with anti-money laundering standards.

• Conversion to Random Layer 1: Tokens are then swapped into a randomly selected Layer 1 coin (e.g., TRX, LTC, SOL, DOT), creating a clean, anonymized transaction route. - Transfer to Exchange 2: The converted Layer 1 asset is forwarded to a deposit address provided by Exchange 2, severing the connection to the original sender. Phase 2: Exchange 2 (Outtake)

• Deposit Address Generation: A new wallet address is created by Exchange 2 to receive the randomized Layer 1 token.

• AML Screening: As with Exchange 1, AML compliance is verified on receipt.

• Final Token Swap: The received Layer 1 token is swapped into the final token specified by the user.

• Payout to Destination Address: The completed token is sent to the recipient's address on its native chain—completing the transaction.

1. End-to-End Privacy Assurance This dual-exchange + randomized intermediary architecture ensures that;

- No single entity can observe the full transaction path. - The sender and recipient are cryptographically severed on-chain. - All wallet addresses involved are single-use and unlinkable. This system provides users with true transactional privacy, eliminating traceability while staying within the boundaries of global regulatory compliance.