How It Works
Redacted gives you a Private Wallet with two components — a Private Reserve (shielded reserve) and a Spendable balance (usable private funds). Together with a Gas Tank for swap fees, this creates a clean, simple structure for private DeFi.
1. Private Reserve (Shielded Reserve)
The Private Reserve is the shared privacy pool where all user deposits are aggregated. When you deposit assets from your public wallet, they enter the Reserve alongside deposits from every other user. This co-mingling of funds creates your privacy set — the larger the pool and the more active users, the stronger your privacy.
What the Private Reserve does:
Receives deposits from public wallets
Tracks balances using encrypted stealth addresses
Validates zero-knowledge proofs for all operations
Serves as the single entry and exit point for all funds
Think of it like a private vault at a bank — many people store funds in the same institution, and an outside observer cannot tell which safe deposit box belongs to whom.
2. Spendable (Private Balance)
The Spendable balance is your personal, private execution account. When you're ready to interact with DeFi, you move funds from your Private Reserve to Spendable. From here, you can trade, swap, borrow, enter liquidity pools, bid on liquidations, and use any Rujira application — all without revealing your identity.
What the Spendable balance does:
Holds funds ready for DeFi interactions
Executes transactions privately on your behalf
Interacts with any Rujira application (Trade, Perps, Liquidations, Index, Launchpad, Strategies)
Collects results (swap outputs, yields) back into your private balance
Important: There is no direct path from Spendable to your Public Wallet. Funds must always return through the Private Reserve first. This enforces the privacy model and ensures compliance.
3. Gas Tank
The Gas Tank is a dedicated RUNE reserve that pays for swap fees on transactions that route through THORChain's base layer. Other actions within Redacted are gasless.
RUNE only — Only accepts RUNE denomination
Swaps only — Covers the ~0.02 RUNE swap fee per transaction
Other actions don't require gas — Deposits, moving to Spendable, moving back to Reserve are gasless
Funded from your Public Account — Deposit RUNE into your Gas Tank directly
Fund your Gas Tank with RUNE to enable private swaps. Non-swap actions like deposits and internal transfers don't require gas.
Last updated