Privacy-focused cryptocurrencies like Monero remain popular, despite increasing regulatory scrutiny that has led to their delisting from major centralized exchanges. The latter also explains the recent popularity of decentralized exchanges (DEXs) with no centralized ownership structures. These platforms typically leverage peer-to-peer (P2P) networks, promising secure and anonymous asset trading. However, questions of liability remain, and the academic literature lacks comprehensive insights into the functionality, trading activity, and privacy claims of these P2P platforms. In this paper, we provide an early systematization of the current landscape of decentralized peer-to-peer exchanges within the Monero ecosystem. We examine several recently developed DEX platforms, analyzing their popularity, functionality, architectural choices, and potential weaknesses. We further identify and report on a privacy vulnerability in the recently popularized Haveno exchange, demonstrating that certain Haveno trades could be detected, allowing transactions to be linked across the Monero and Bitcoin blockchains. We hope that our findings can nourish the discussion in the research community about more secure designs, and provide insights for regulators.
New research paper about HavenoDex shows trades between Monero and Bitcoin are traceable.
Abstract:
…We further identify and report on a privacy vulnerability in the recently popularized Haveno exchange, demonstrating that certain Haveno trades could be detected, allowing transactions to be linked across the Monero and Bitcoin blockchains.
So: stick with Monero. It is a common misconception that swapping back and forth makes sense. If you want to store value, you should store it in the more secure Monero and, if you need to use BTC, exchange the required amount into BTC at the time of payment.
When exchanging BTC for XMR, it is a necessary evil that you have to use the BTC. But once you have exchanged them for XMR, you are on the safe side.
There’s no problem with Haveno or Retoswap’s wallet. The research shows about trades between Bitcoin and Monero.
Fiat trades are fine.
So: stick with Monero. It is a common misconception that swapping back and forth makes sense. If you want to store value, you should store it in the more secure Monero and, if you need to use BTC, exchange the required amount into BTC at the time of payment.
When exchanging BTC for XMR, it is a necessary evil that you have to use the BTC. But once you have exchanged them for XMR, you are on the safe side.