VeiledSwap: Private agent-to-agent token swaps on Hedera with unlinkable redemptions
Privacy in decentralized finance has remained an unsolved challenge. While blockchains provide transparency, this same property makes every transaction permanently traceable, enabling surveillance, front-running, and wallet clustering. Traders, DAOs, and individuals often need to move assets without exposing their strategies, financial relationships, or political affiliations. Current solutions like mixers and privacy coins either face regulatory pushback or fail to integrate seamlessly with existing liquidity infrastructure.
VeiledSwap addresses this gap by introducing a privacy-preserving token swap protocol built on Hedera EVM and coordinated by Artificial Superintelligence (ASI) agents. The system employs a two-agent model—Veiled Bot A and Unveiled Bot B—to decouple user deposits from liquidity execution and final redemption. When a user initiates a swap, Veiled Bot A accepts the deposit, issues a unique redemption hash key, and forwards anonymized swap instructions to Unveiled Bot B. The latter executes periodic swaps in liquidity pools and stores the resulting tokens until users redeem them at their convenience.
This architecture ensures that deposits, swaps, and withdrawals are unlinkable, protecting users from transaction graph analysis and timing correlation. Privacy is further enhanced through periodic batching, multi-wallet distribution, and asynchronous redemption. By leveraging Hedera’s speed and low fees along with ASI’s adaptive agent-to-agent communication, VeiledSwap creates a scalable and censorship-resistant privacy layer for tokenized value transfer.
The protocol enables a wide range of privacy use cases:
Institutional traders can move liquidity discreetly.
DAOs can manage treasuries without revealing strategies.
NGOs and activists can receive donations safely.
Retail users can rebalance portfolios without market exposure.
In doing so, VeiledSwap positions itself not only as a decentralized exchange alternative, but as the default privacy infrastructure for token swaps in the Hedera ecosystem and beyond.
How VeiledSwap Was Built VeiledSwap is a privacy-preserving token swap platform that leverages cutting-edge agent-to-agent communication and the Artificial Superintelligence Alliance (ASI) to enable secure, unlinkable, and asynchronous token swaps on Hedera EVM.
Core Architecture & Technologies Backend Infrastructure:
uAgents Framework: Built the core agent system using Python's uAgents library, creating two specialized agents - Veiled Bot A (user-facing deposit agent) and Unveiled Bot B (liquidity & redemption agent) Hedera Hashgraph: Chose Hedera for its low-cost, high-TPS, carbon-neutral blockchain with EVM compatibility, perfect for privacy-focused applications Web3.py Integration: Implemented direct blockchain interaction for HBAR transfers and ERC-20 token operations REST API Layer: Built comprehensive REST endpoints using uAgents' built-in HTTP server for seamless frontend integration
Privacy-First Design:
Two-Agent Model: Decoupled user deposits from liquidity operations using separate agents, creating a privacy buffer between user intent and market action Hash-Based Redemption: Implemented one-time cryptographic hash keys for authentication without signatures, preventing wallet clustering Temporal Obfuscation: Built asynchronous redemption system where deposits and redemptions occur at unrelated times Batch Mixing: Designed periodic execution system where Bot B batches multiple user swaps together for anonymity set growth
Frontend Development:
React 19 + Vite: Modern React setup with Vite for lightning-fast development and optimized builds Ethers.js v6: Integrated Web3 functionality for Hedera testnet wallet connections and HBAR transactions Dark Mode UI: Custom CSS with hacker-green theming, creating an immersive cyberpunk aesthetic Real-time Polling: Implemented sophisticated status monitoring system that polls transfer completion every 10 seconds
Partner Technology Benefits ASI Alliance Integration:
Leveraged ASI's agent coordination capabilities for seamless Bot A ↔ Bot B communication Used ASI's structured output parsing for reliable AI-powered prompt analysis Benefited from ASI's cost estimation algorithms for accurate HBAR pricing
Hedera Hashgraph Advantages:
Low transaction costs (fractions of a cent) made micro-transactions viable High throughput (10,000+ TPS) enabled batch processing of multiple transfers Carbon-neutral blockchain aligned with sustainable DeFi principles EVM compatibility allowed use of existing Web3 tooling