Incognito pDEX: How it works and how to use it

pDEX is a different kind of exchange. It’s non-custodial (which means your money is actually yours), it’s decentralized (built entirely on-chain), and because it’s powered by Incognito — it’s completely anonymous, of course.

It also facilitates instant matches by means of an automated market-making mechanism (more on this in a bit), and offers a chance for anyone to become a liquidity provider and earn a percentage of trading fees.

pDEX is the privacy-focused, inter-blockchain and instant-matching rendition of Nick Johnson and Vitalik Buterin’s conversations on Reddit circa 2016, and Hayden Adam’s implementation of Uniswap in 2018.

Let’s get to it.

How to trade with no order book

On exchanges like Binance and Coinbase, liquidity is provided by market makers who specify prices at which they are willing to buy or sell. On pDEX, trading occurs within a pool. Liquidity providers contribute even liquidity to both sides of a trading pair, and the pDEX mechanism automatically adjusts the exchange rate of every trade to keep the pool values at a constant. Want to dive a little deeper into the mechanics? Refer to the technical overview.

To access pDEX, simply open the Incognito Wallet and tap on the pDEX icon at the bottom of your screen. Expand the dropdowns to see the trading pairs available, and select the currency you want to trade (From), and the currency you want to receive (To).

When pDEX launches on November 26th, the first pair will be PRV/BTC. More pairs will follow, and we hope you’ll create your own pairs too (to learn more about what it looks like to be a liquidity provider, scroll to the end of this article).

Deposit funds to start trading

To start trading, first you’ll need to deposit funds into your Incognito trading account.

1. Tap ‘Deposit to trade’.

2. Select the account you want to deposit funds from.

3. Then customize the network fee if you wish. As usual, higher network fees result in faster transaction times.


4. Make sure everything is in order, then tap ‘Deposit’. Your trading account balance will take a couple of minutes to update.

Perfect. Now you’re ready to start trading.

How to trade

So how do you make 100% confidential trades without an order book? It’s simple.

1. Select the trading pair you’re interested in.

2. Enter the amount you would like to trade and the algorithm will determine what you’ll get for it.


3. Customize your trading fee or leave it as the default.

On pDEX, everything is market-driven, including your trading fees. Here, you’ll see a fee suggestion based on recent averages, but you’ll also be able to tap to customize how much you would like to pay. The higher the fee, the faster your order will process. You are always free to select a lower fee, but the trade may be delayed.


4. Enter the minimum amount you will accept for the trade.

This is to account for possible movements in price while the trade processes. If the amount falls below the minimum you will accept, the trade will fail. If the price moves in your favor, you’ll receive the full amount, not just the minimum indicated.


A key benefit of utilizing an automated market-making mechanism is that all matches are instant. Exchange rates are dynamic, and will fluctuate depending on the ratio of currencies in the pool.

So if you see a rate you like, be quick!

Trade initiated!

Most trades will be successful, and your balance will update in a few minutes. In rare cases, network fees or trading fees will be insufficient, and you might have to initiate the trade again with adjusted values. Now, either continue trading, or withdraw your funds from your trading account.

How to withdraw

1. Tap the menu on the top right and select withdraw

2. Select the account you’d like to withdraw pDEX funds to

3. Choose the token

4. Enter the amount

5. Select the network fee or use the default

6. Then tap ‘Withdraw’


Success! You just made your first 100% confidential trade.

Now, what if your preferred trading pair isn’t listed? Just become a liquidity provider and list it yourself.

How to become a liquidity provider (coming soon)

You can add liquidity to an existing pool, or make a new trading pair available by creating your own. You can contribute to any existing pool, and anyone can contribute to a pool you create. If you are the first to contribute that trading pair, you’ll set the initial price.

You’ll have to provide even liquidity to both sides of the pair to ensure the ratio is maintained. For example, if you want to supply 1 pETH, you must also supply its equivalent in pDAI.


If you supply 10% of the pool’s liquidity, you’ll earn 10% of its trading fees. You’ll receive these fees when you remove your contribution and exit the pool. Note: if you’d like to withdraw a liquidity contribution, you need to remove it from the pool first.

Access pDEX from the Incognito wallet

Download for iOS

Download for Android

On November 26th, the first version of pDEX will come with full trading functionality. The option to become a liquidity provider will roll out later in December.

Connect with the community on Telegram @incognitochain, and send questions and comments our way!

For more specific or technical questions, reach the team at @incognitonode, or send us an email the good old fashioned way at

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