Sacred enables you to deposit funds into a mixer with one address, and redeem it with a different address, breaking the on-chain link and obscuring the record on the blockchain from observers. This is possible thanks to zero knowledge proofs.
What you can do to increase everyone’s privacy:
Leave assets in the mixer for as long as possible. The longer you leave the funds in the mixer the harder it will be for a second party to follow your transactions, as well as transactions from our other users.
A detailed explanation of anonymity set:
For every deposit type (i.e., 1 WETH, 10 WETH, etc.) within Sacred, there is a Sacred Box that manages a set (collection) of all active user deposits of that denomination, from oldest to newest. We call this set of layered deposits an Anonymity Set. For withdrawals to be considered private, wait for at least 5-10 layers of deposits on top of your own to achieve maximal privacy.
An important incentive mechanism that supports larger anonymity sets is Incognito Mining. This incentive increases the level of privacy in each Sacred Box as it incentivizes users to put their liquidity into Sacred. Remember the more deposits there are, the more depth within Anonymity Set and the stronger the Privacy Indicator (level).
The community maintains Sacred’s Privacy and is rewarded for it both by earning yield from deposits and through Incognito Mining!
Anonymity sets are integral to the overall privacy of Sacred’s ecosystem. Please check out the 7 Rules to keep your deposit private!