Introducing Haze Finance: Binance Smart Chain’s First Non-Custodial DeFi Tokens Private Transactions Protocol

5 min readFeb 19, 2021

Users who have been involved with cryptocurrency for a while are probably familiar with the concept of following the whales’ wallets. For those of you who don’t know, this is when people observe the contract accounts of the ultra-wealthy individuals on block explorers like Bscscan or Etherscan, following their traces to see the tokens that they are purchasing, the protocols they are interacting with. With this feature, people can make their own investment decisions based on the whales’ moves. This is like being able to peek inside Elon Musk or Bill Gates’ bank accounts and investment portfolios in the CeFi world. Sounds good right? But imagine if people can do that to YOUR accounts too. Imagine being watched and traced every single move you are making on the block. Imagine what people with malicious intentions can do with all this information. The inability to send money to yourself without hundreds of thousands of people staring at you, feels like streaking. And in this case, while you are watching others, you are also being watched. This is the double-edge sword of being in DeFi. While one is in full control of his/her assets, he/she is also in full exposure of his/her assets allocations. But it does not have to be this way. Haze Finance, a non custodial and fully private transactions protocol, allows you to enjoy autonomy in the decentralized ecosystems without sacrificing your privacy in exchange. Unstreak yourself with us.

What is so unique about Haze Finance?

Some of you might wonder, well, isn’t there already protocols available that are doing the same things? There’s one crucial feature that sets Haze Finance apart from its peers:

It is the first DeFi tokens private transactions protocol on Binance Smart Chain

Here is a list of tokens that will be included in phase 1 of Haze Finance’s private transactions list. We will kickoff with BUSD as the first private transaction token, and add in other tokens to the private transactions program as we progress. If there are tokens with high interest that are not included in the list, HAZE tokens holders will be able to vote on proposals to add new tokens to the list.

Crypto: BNB, ETH, BTCB

Stablecoins: BUSD, BUSDT, USDC, DAI

DeFi: CAKE, XVS, JULD, AUTO, BAKE, BUNNY, ACS

Another key feature of Haze Finance is its anonymity set liquidity incentive. As a private transactions protocol, the team understands the importance of having a large anonymity set- the larger the anonymity set, the harder it is for observers to tell which accounts and transactions belong to whom. Haze is able to achieve a large anonymity set by providing yield farming as incentives to attract more people to contribute to the liquidity of the anonymity set. Users can earn HAZE tokens by staking any token from the tokens list mentioned above in the protocol’s anonymity pools. With this incentive, people will be willing to contribute to the anonymity set and the larger the anonymity set, the more users it can attract, which further increases the size of the anonymity set, creating a positive cycle for the protocol.

How do we ensure transaction privacy in Haze Finance?

Haze Finance achieves transaction privacy by using the zkSnarks proof, a type of cryptography that allows one party to prove the validity of another party’s transactions without disclosing the identity of the senders or information unrelated to the validity of the transactions.

With the zkSnarks proof, an example of a user’s private transaction process will look like this: Mike deposits his BUSD in the smart contract, the deposited BUSD is then mixed with other BUSD in the anonymity pools and Mike receives a passkey (a series of bytes) that proves that he has deposited a certain amount of BUSD to the smart contract. When Mike wants to withdraw the BUSD from the smart contract, he simply has to enter the passkey and the smart contract will transfer the specified amount to the specified address provided by him. By breaking the on-chain link of the transactions, there is simply no way for the observers to trace the origin of the funds through the withdrawal.

How else can users benefit from Haze Finance and HAZE tokens?

Haze Finance also provides the liquidity mining program that allows users to contribute to the HAZE liquidity pool in PancakeSwap and stake their LP tokens in the Haze Finance platform to earn more HAZE tokens as rewards. As HAZE tokens holders, users will also have a share of the profits that the protocol earns. On top of all these, the HAZE token is also a governance token that allows the project to be community-guided and let the token holders vote on proposals.

Lastly: we are currently a Binance Smart Chain based project, but with plans of launching on the Ethereum and other blockchain ecosystem in the future. As some of you might already noticed, using private transactions on the current Ethereum system can be very costly with the gone through the roof gas fee. The developers of Haze Finance have already looked into the ways of enabling private transactions on Layer 2 using methods such as optimistic rollup. This will be the first time that anyone has ever introduced Layer 2 private transactions on the Ethereum network. If the development goes smoothly, Haze Finance will be able to provide low cost private transactions for the DeFi tokens listed on Ethereum and other blockchain ecosystems as well. This means no more streaking on chains for all users, ever. We will keep updating you guys on the progress.