Sacred Rules
Sacred Rules to keep your deposit private
Here are 7 rules to keep your deposit private when using Sacred Finance.
These rules are to keep you and everyone using Sacred more private. However, suppose a user were not to follow the Sacred Rules. In that case, that contribution will be considered a Spoiled Transaction (ST) - which contributes to the anonymity set as just a nominal value but does not provide any privacy to the rest of the users in the anonymity set. This means that wallets will not be private while using the Sacred, nor will you contribute to the privacy of others in the pool.
Rule 1:
Use a VPN or TOR. Your IP address is another digital data point tied to your identity. For example, when making a transaction with your wallet, your Internet Service Provider (ISP) can link your IP address to your withdrawal transaction (and its wallet address), revealing your identity. A VPN or TOR can alleviate this, as it obscures your IP address.
Wait for 5~10 deposits to be made after you deposit your assets before withdrawing. Patience is a virtue, and an immediate asset withdrawal right after you make the deposit severely impacts your privacy. An observer can make an educated guess that the same person made the immediate deposit and withdrawal. ie. 1 ETH deposited at 8:00 am is the same as 1ETH withdrawn at 8:01 am.
The more deposits after your own, the more the mixer camouflages your deposit. For example, imagine you drop a quarter into a box. The more coins that are dropped into the box after you drop in your coin, the less likely an observer would be able to figure out your withdrawal. Additionally, the more TVL in a Sacred Box, the more everyone benefits as privacy is a shared commodity, and the bigger the pools, the harder it is to trace!
Keep your deposits (assets) longer on Sacred Finance. As mentioned above, the longer your assets are locked in the Sacred Box, the higher the transaction volume will be in Sacred's mixer, increasing your transaction's privacy level. This increases anonymity set and security! Additionally, a higher number of withdrawals from the Sacred Box will further camouflage your withdrawal to the new wallet. We recommend withdrawing assets after 24 hours; however, at a minimum, ensure there have been at least 5~10 deposits made after your deposit.
Use different wallet addresses (multiple even) when withdrawing from Sacred; you must use a different wallet address when making a withdrawal. Even if you are not using a blockchain surveillance tool, anyone can quickly tell that you have made a transaction on Sacred if you use the same deposit and withdrawal wallet address for transferring crypto assets.
Furthermore, never make transactions directly from a depositing address to a withdrawing address, and avoid doing so indirectly via intermediate addresses that you own. Research has shown that many users send funds from their depositing addresses to their withdrawing addresses after making a deposit and withdrawal. It has already been used to deanonymize users retroactively.
Moving a majestic 10 ETH more than 5 times? It's best to withdraw such a remarkable amount to multiple withdrawal addresses instead of just one.
Stagger deposits at different times of the day and mainly do not deposit and withdraw on the same day. Clues to your transaction history may be revealed if you redeem all Sacred Claims simultaneously or close to when you deposit your assets. Space out withdrawing your assets over time by staggering your withdrawal times and making sure you use different addresses. We are all creatures of habit, and it is easy to interact with DApps around familiar time patterns. Doing this leaves a personal footprint to the Internet Service Providers and other bad actors about your DApp interactions and frequencies providing habitual information. Randomizing the times your deposit and withdraw your funds can further maximize your privacy.
Use fresh addresses to generate your Incognito Accounts. The account that is connected to the Incognito Account doesn't have to be generated by your depositing or withdrawing addresses. However, if you generate a new account, it will further obscure traceability.
Keep your privacy to yourself. If a Sacred user reveals the time and date of their deposits and withdrawals, it decreases the community privacy level by decreasing the number of anonymity sets on Sacred. So, for privacy, please don't post your transaction details, times, or dates on social media or any public platforms, as it will impact the overall privacy of the Sacred Boxes and your privacy.
These are critical 'rules' that have a significant impact on your privacy as well as Sacred community's privacy. Please ask the community members on Discord if you don't understand these rules!