Aztec Network
29 Aug
## min read

From zero to nowhere: smart contract programming in Huff (2/4)

Follow the journey of smart contract programming in Huff, offering unique insights into this coding language.

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Written by
Zac Williamson
Edited by

Hello there!

This is the second article in a series on how to write smart contracts in Huff.

Huff is a recent creation that has rudely inserted itself into to the panoply of Ethereum smart contract-programming languages. Barely a language, Huff is more like an assembler that can manage a few guttural yelps, that could charitably be interpreted as some kind of syntax.

I created Huff so that I could write an efficient elliptic curve arithmetic contract called Weierstrudel, and reduce the costs of zero-knowledge cryptography on Ethereum. So, you know, a general purpose language that will take the world by storm at any moment…

But hey, I guess it can be used to write an absurdly over-optimised ERC20 contract as well.

So let’s dive back into where we left off.

Prerequisites

  • Part 1 of this series
  • Knowledge of Solidity inline assembly
  • A large glass of red wine. Huff’s Ballmer peak is extremely high, so a full-bodied wine is ideal. A Malbec or a Merlot will also balance out Huff’s bitter aftertaste, but vintage is more important than sweetness here.

Difficulty rating: (medium Huff)

Getting back into the swing of things: Transfer

We left off in the previous article with the skeletal structure of our contract, which is great! We can jump right into the fun stuff and start programming some logic.

We need to implement the functionality function transfer(address to, uint256 value) public returns (bool). Here’s a boilerplate Solidity implementation of transfer

function transfer(address to, uint256 value) public returns (bool) {
  balances[msg.sender] = balances[msg.sender].sub(value);
  balances[to] = balances[to].add(value);
  emit Transfer(from, to, value);
  return true;
}

Hmm. Well, this is awkward. We need to access some storage mappings and emit an event.

Huff doesn’t have mappings or events.

Okay, let’s take a step back. An ERC20 token represents its balances by mapping address to an integer: mapping(address => uint) balances. But…Huff does not have types (Of course Huff doesn’t have types, type checking is expensive! Well, it’s not free, sometimes, so it had to go).

In order to emulate this, we need to dig under the hood and figure out how Solidity represents mappings, with hashes.

Breaking down a Solidity mapping

Smart contracts store data via the sstore opcode — which takes a pointer to a storage location. Each storage location can contain 32 bytes of data, but these locations don’t have to be linear (unlike memory locations, which are linear).

Mappings work by combining the mapping key with the storage slot of the mapping, and hashing the result. The result is a 32 byte storage pointer that unique both to the key being used, and the mapping variable in question.

So, we can solve this problem by implement mappings from scratch! The Transfer event requires address from, address to, uint256 value. We’ll deal with the event at the end of this macro, but given that we will be re-using the from, to, value variables a lot, we might as well throw them on the stack. What could go wrong?

Initialising the stack

Before we start cutting some code, let’s map out the steps our method has to perform:

  1. Increase balance[to] by value
  2. Decrease balance[msg.sender] by value
  3. Error checking
  4. Emit the Transfer(from, to, value) event
  5. Return true

When writing an optimised Huff macro, we need to think strategically about how to perform the above in order to minimise the number of swap opcodes that are required.

Specifically, the variables from and to are located in calldata, the data structure that stores input data sent to the smart contract. We can load a word of calldata via calldataload. The calldataload opcode has one input, the offset in calldata that we’re loading from, meaning it costs 6 gas to load a word of calldata.

It only costs 3 gas to duplicate a variable on the stack, so we only want to load from calldata once and re-use variables with the dup opcode.

Because the stack is a last-in-first-out structure, the first variables we load onto the stack will be consumed by the last bit of logic in our method.

The last ‘bit of logic’ we need is the event that we will be emitting, so let’s deal with how that will work.

Huff and events

Imagine we’re almost done implementingtransfer(address to, uint256 value) public returns (bool), the only minor issue is that we need to emit an event, Transfer(address indexed from, address indexed to, uint256 value).

…I have a confession to make. I’ve never written a Huff contract that emits events. Still, there’s a first time for everything yes?

Events have two types of data associated with them, topics and data.

Topics are what get created when an event parameter has the indexed prefix. Instead of storing the parameter address indexed from in the event log, the keccak256 hash of from is used as a database lookup index.

i.e. When searching the event logs, you can pull out all Transfer events that contained a given address in the from or to field. But if you look at a bunch of Transfer event logs, you won’t be able to identify which address was used as the from or to field by looking at the log data.

Our event Transfer has three topics, despite only having two indexed parameters. The event signature is also a topic (a keccak256 hash of the event string, it’s like a function signature).

Digging around in Remix, this is the event signature:

0xDDF252AD1BE2C89B69C2B068FC378DAA952BA7F163C4A11628F55A4DF523B3EF. Just rolls off the tongue doesn’t it?

So we know what we need to do with indexed data — just supply the ‘topics’ on the stack. Next, how does an event log non-indexed data?

Taking a step back, there are five log opcodes: log0, log1, log2, log3, log4. These opcodes describe the number of indexed parameters in each log.

We want log3. The interface for the log3 opcode is log3(p1, p2, a, b, c). Memory p1 to p1+p2 contains the log data, and a, b, c represent the log topics.

i.e. we want log3(p1, p2, event_signature, from, to). The values from, to, event_signature are going to be the last variables consumed on our stack, so they must be the first variables we add to it at the start of our program.

Finally, we’re in a position to write some Huff code, oh joy. Here it is:

0x04 calldataload
caller0xDDF252AD1BE2C89B69C2B068FC378DAA952BA7F163C4A11628F55A4DF523B3EF

Next up, we need to define the memory that will contain value. That’s simple enough — we’ll be storing value at memory position 0x00, so p1=0x00 and p2=0x20. Giving us

0x04 calldataload
caller
0xDDF252AD1BE2C89B69C2B068FC378DAA952BA7F163C4A11628F55A4DF523B3EF
0x20
0x00

Finally, we need value, so that we can store it in memory for log3. We will execute the mstore opcode at the end of our method, so that we can access value from the stack for the rest of our method. For now, we just load it onto the stack:

0x04 calldataload
caller
0xDDF252AD1BE2C89B69C2B068FC378DAA952BA7F163C4A11628F55A4DF523B3EF
0x20
0x00
0x24 calldataload

One final thing: we have assumed that 0x04 calldataload will map to address to. But 0x04 calldataload loads a 32-byte word onto the stack, and addresses are only 20 bytes! We need to mask the 12 most-significant bytes of 0x04 calldataload, in case the transaction sender has added non-zero junk into those upper 12 bytes of calldata.

We can fix this by calling 0x04 calldataload 0x000000000000000000000000ffffffffffffffffffffffffffffffffffffffff and.

Actually, let’s make a macro for that, and one for our event signature to keep it out of the way:

#define macro ADDRESS_MASK = takes(1) returns(1) {
0x000000000000000000000000ffffffffffffffffffffffffffffffffffffffff
and
}

#define macro TRANSFER_EVENT_SIGNATURE = takes(0) returns(1) {
0xDDF252AD1BE2C89B69C2B068FC378DAA952BA7F163C4A11628F55A4DF523B3EF
}

The final state of our ‘initialisation’ macro is this:#define macro ERC20__TRANSFER_INIT = takes(0) returns(6) {  0x04 calldataload ADDRESS_MASK()  caller  TRANSFER_EVENT_SIGNATURE()  0x20  0x00  0x24 calldataload}

Updating balances[to]

Now that we’ve set up our stack, we can proceed iteratively through our method’s steps (you know, like a normal program…).

To increase balances[to], we need to handle mappings. To start, let’s get our mapping key for balances[to]. We need to place to and the storage slot unique to balances linearly in 64 bytes of memory, so we can hash it:

// stack state:
// value 0x20 0x00 signature from to
dup6 0x00 mstore
BALANCE_LOCATION() 0x20 mstore
0x40 0x00 sha3

In the functional style, sha3(a, b) will create a keccak256 hash of the data in memory, starting at memory index aand ending at index a+b.

Notice how our ‘mapping’ uses 0x40 bytes of memory? That’s why the ‘free memory pointer’ in a Solidity contract is stored at memory index 0x40 — the first 2 words of memory are used for hashing to compute mapping keys.

Optimizing storage pointer construction

I don’t know about you, but I’m not happy with this macro. It smells…inefficient. In part 1, when we set BALANCE_LOCATION() to storage slot 0x00, we did that on purpose! balances is the most commonly used mapping in an ERC20 contract, and there’s no point storing 0x00 in memory. Smart contract memory isn’t like normal memory and uninitialised — all memory starts off initialised to 0x00. We can scrap that stuff, leaving:

// stack state:
// value 0x20 0x00 signature from to
dup6 0x00 mstore
0x40 0x00 sha3

Note that if our program has previously stored something at index 0x20, we will compute the wrong mapping key.

But this is Huff; clearly the solution is to just never use more than 32 bytes of memory for our entire program. What are we, some kind of RAM hog?

Setting storage variables

Next, we’re going to update balances[to]. To start, we need to load up our balance and duplicate value, in preparation to add it to balances[to].

// stack state:
// key(balances[to]) value 0x20 0x00 signature from to
dup1 sload
dup3

Now, remember that MATH__ADD macro we made in part 1? We can use it here! See, Huff makes programming easy with plug-and-play macros! What a joy.

// stack state:
// key(balances[to]) value 0x20 0x00 signature from to
dup1 sload
dup3MATH_ADD()

…wait. I said we could use MATH__ADD, not that we were going to. I don’t like how expensive this code is looking and I think we can haggle.

Specifically, let’s look at that MATH__ADD macro:

template #define macro MATH__ADD = takes(2) returns(1) { // stack state: a b dup2 add // stack state: (a+b) a dup1 swap2 gt // stack state: (a > (a+b)) (a+b) jumpi }

Remember how, well, optimised, our macro seemed in part 1? All I see now is a bloated gorgon feasting on wasted gas with opcodes dribbling down its chin. Disgusting!

First off, we don’t need that swap2 opcode. Our original macro consumed a from the stack because that variable wasn’t needed anymore. But… a is uint256 value, and we do need it for later — we can replace dup1 swap2 with a simple dup opcode.

But there’s a larger culprit here that needs to go, that jumpi opcode.

Combining error codes

The transfer function has three error tests it must perform: the two safemath checks when updating balances[from] and balances[to], and validating that callvalue is 0.

If we were to implement this naively, we would end up with three conditional jump instructions and associated opcodes to set up jump labels. That’s 48 gas. Quite frankly, I’d rather put that gas budget towards another Malbec, so let’s start optimising.

Instead of directly invoking a jumpi instruction against our error test, let’s store it for later. We can combine all of our error tests into a single test and only onejumpi instruction. Putting this into action, let’s compute the error condition, but leave it on the stack:

// stack state:
// key(balances[to]) value 0x20 0x00 signature from to
dup1 sload // balances[to]
dup3       // value balances[to]
add        // value+balances[to]
dup1       // value+balances[to] value+balances[to]
dup4       // value v+b v+b
gt         // error_code value+balances[to]

Finally, we need to store value+balances[to] at the mapping key we computed previously. We need key(balances[to]) to be in front of value+balances[to], which we can perform with a simple swap opcode:

#define macro ERC20__TRANSFER_TO = takes(6) returns(7) {
// stack state:
// value 0x20 0x00 signature from to
dup6 0x00 mstore
0x40 0x00 sha3
dup1 sload // balances[to] key(balances[to]) ...
dup3       // value balances[to] ...
add        // value+balances[to] ...
dup3       // value value+balances[to] ...
gt         // error_code value+balances[to] key(balances[to])
swap2      // key(balances[to]) value+balances[to} error_code
sstore     // error_code ...
}

And that’s it! We’re done with updating balances[to]. What a breeze.

Updating balances[from]

Next up, we need to repeat that process for balances[from], pillaging the parts of MATH__SUB that are useful.

#define macro ERC20__TRANSFER_FROM = takes(7) returns(8) {
// stack state:
// error_code, value, 0x20, 0x00, signature, from, to
caller 0x00 mstore
0x40 0x00 sha3
dup1 sload // balances[from], key(balances[from]), error_code,...
dup4 dup2 sub // balances[from]-value, balances[from], key, e,...
dup5 swap3 // key, balances[from]-value, balances[from], value
sstore     // balances[from], value, error_code, value, ...
lt         // error_code_2, error_code, value, ...
}

Now that we have both of our error variables on the stack, we can perform our error test! In addition to the two error codes, we want to test whether callvalue> 0. We don’t need gt(callvalue,0) here, any non-zero value of callvalue will trigger our jumpi instruction to jump.

callvalue or or jumpi

What an adorable little line of Huff.

Emitting Transfer(from, to, value)

The penultimate step in our method is to emit that event. Our stack state at this point is where we left it after ERC20__TRANSFER_INIT, so all we need to do is store value at memory index 0x00 and call the log3 opcode.

// stack state:
// value, 0x20, 0x00, event_signature, from, to
0x00 mstore log3

Finally, we need to return true (i.e. 1). We can do that by storing 0x01 at memory position 0x00 and calling return(0x00, 0x20)

Putting it all together…

At long last, we have our transfer method! It’s this…thing

#define macro OWNER_LOCATION = takes(0) returns(1) {
0x01
}

#define macro ADDRESS_MASK = takes(1) returns(1) {
0x000000000000000000000000ffffffffffffffffffffffffffffffffffffffff
and
}

#define macro TRANSFER_EVENT_SIGNATURE = takes(0) returns(1) {
0xDDF252AD1BE2C89B69C2B068FC378DAA952BA7F163C4A11628F55A4DF523B3EF
}

#define macro ERC20 = takes(0) returns(0) {
caller OWNER_LOCATION() mstore
}

#define macro ERC20__TRANSFER_INIT = takes(0) returns(6) {
0x04 calldataload ADDRESS_MASK()
caller
TRANSFER_EVENT_SIGNATURE()
0x20
0x00
0x24 calldataload
}

#define macro ERC20__TRANSFER_GIVE_TO = takes(6) returns(7) {
// stack state:
// value, 0x20, 0x00, signature, from, to
dup6 0x00 mstore
0x40 0x00 sha3
dup1 sload // balances[to], key(balances[to]), ...
dup3       // value, balances[to], ...
add        // value+balances[to], ...
dup1       // value+balances[to], value+balances[to], ...
dup4       // value value+balances[to] ...
gt         // error_code, value+balances[to], key(balances[to])
swap2      // key(balances[to]), value+balances[to}, error_code
sstore     // error_code, ...
}

#define macro ERC20__TRANSFER_TAKE_FROM = takes(7) returns(8) {
// stack state:
// error_code, value, 0x20, 0x00, signature, from, to
caller 0x00 mstore
0x40 0x00 sha3
dup1 sload // balances[from], key(balances[from]), error_code,...
dup4 dup2 sub // balances[from]-value, balances[from], key, e,...
dup5 swap3 // key, balances[from]-value, balances[from], value
sstore     // balances[from], value, error_code, value, ...
lt         // error_code_2, error_code, value, ...
}

template #define macro ERC20__TRANSFER = takes(0) returns(0) { ERC20__TRANSFER_INIT() ERC20__TRANSFER_TO() ERC20__TRANSFER_FROM() callvalue or or jumpi 0x00 mstore log3 0x01 0x00 mstore 0x20 0x00 return }

Wasn’t that fun?

I think that’s a reasonable place to end this article. In the next chapter, we’ll deal with how to handle ERC20 allowances in a Huff contract.

Cheers,

Zac.

Click here for part 3

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Aztec Network
Aztec Network
13 Nov
xx min read

The ticker is $AZTEC

We invented the math. We wrote the language. Proved the concept and now, we’re opening registration and bidding for the $AZTEC token today, starting at 3 pm CET. 

The community-first distribution offers a starting floor price based on a $350 million fully diluted valuation (FDV), representing an approximate 75% discount to the implied network valuation (based on the latest valuation from Aztec Labs’ equity financings). The auction also features per-user participation caps to give community members genuine, bid-clearing opportunities to participate daily through the entirety of the auction. 

How to Check Eligibility and Submit Your Bid 

The token auction portal is live at: sale.aztec.network

  • This is the only valid link to the $AZTEC token auction site. Be cautious of phishing scams. No one from the Aztec team will ever contact you directly for seed phrase or private keys. 
  • Visit the site to verify your eligibility and mint a soul-bound NFT that confirms your participation rights. 
  • We have incorporated zero-knowledge proofs into the sale smart contracts by using ZKPassport's Noir circuits to ensure compliant sanctions checks without risking the privacy of our users. 
  • Registration and bidding for early contributors start today, November 13th, at 3 PM CET, with early contributors receiving one day of exclusive access before bidding opens to the general public.
  • The public auction will run from December 2nd, 2025, to December 6th, 2025, at which point tokens can be withdrawn and staked.

Why Are We Doing This? 

We’ve taken the community access that made the 2017 ICO era great and made it even better. 

For the past several months, we've worked closely with Uniswap Labs as core contributors on the CCA protocol, a set of smart contracts that challenge traditional token distribution mechanisms to prioritize fair access, permissionless, on-chain access to community members and the general public pre-launch. This means the $AZTEC token will be 100 percent community-owned on day 1 of the unlock. 

This model is values-aligned with our Core team and addresses the current challenges in token distribution, where retail participants often face unfair disadvantages against whales and institutions that hold large amounts of money. 

Early contributors and long-standing community members, including genesis sequencers, OG Aztec Connect users, network operators, and community members, can start bidding today, ahead of the public auction, giving those who are whitelisted a head start and early advantage for competitive pricing. Community members can participate by visiting the token sale site to verify eligibility and mint a soul-bound NFT that confirms participation rights. 

To read more about Aztec’s fair-access token sale, visit the economic and technical whitepapers and the token regulatory report.

Discount Price Disclaimer: Any reference to a prior valuation or percentage discount is provided solely to inform potential purchasers of how the initial floor price for the token sale was calculated. Equity financing valuations were determined under specific circumstances that are not comparable to this offering. They do not represent, and should not be relied upon as, the current or future market value of the tokens, nor as an indication of potential returns. The price of tokens may fluctuate substantially, the token may lose its value in part or in full, and purchasers should make independent assessments without reliance on past valuations. No representation or warranty is made that any purchaser will achieve profits or recover the purchase price.

Information for Persons in the UK: This communication is directed only at persons outside the UK. Persons in the UK are not permitted to participate in the token sale and must not act upon this communication.

MiCA Disclaimer: Any crypto-asset marketing communications made from this account have not been reviewed or approved by any competent authority in any Member State of the European Union. Aztec Foundation as the offeror of the crypto-asset is solely responsible for the content of such crypto-asset marketing communications. The Aztec MiCA white paper has been published and is available here. The Aztec Foundation can be contacted at hello@aztec.foundation or +41 41 710 16 70. For more information about the Aztec Foundation, visit https://aztec.foundation.

Aztec Network
Aztec Network
28 Oct
xx min read

Your Favorite DeFi Apps, Now With Privacy

Every time you swap tokens on Uniswap, deposit into a yield vault, or vote in a DAO, you're broadcasting your moves to the world. Anyone can see what you own, where you trade, how much you invest, and when you move your money.

Tracking and analysis tools like Chainalysis and TRM are already extremely advanced, and will only grow stronger with advances in AI in the coming years. The implications of this are that the ‘pseudo-anonymous’ wallets on Ethereum are quickly becoming linked to real-world identities. This is concerning for protecting your personal privacy, but it’s also a major blocker in bringing institutions on-chain with full compliance for their users. 

Until now, your only option was to abandon your favorite apps and move to specialized privacy-focused apps or chains with varying degrees of privacy. You'd lose access to the DeFi ecosystem as you know it now, the liquidity you depend on, and the community you're part of. 

What if you could keep using Uniswap, Aave, Yearn, and every other app you love, but with your identity staying private? No switching chains. Just an incognito mode for your existing on-chain life? 

If you’ve been following Aztec for a while, you would be right to think about Aztec Connect here, which was hugely popular with $17M TVL and over 100,000 active wallets, but was sunset in 2024 to focus on bringing a general-purpose privacy network to life. 

Read on to learn how you’ll be able to import privacy to any L2, using one of the many privacy-focused bridges that are already built. 

The Aztec Network  

Aztec is a fully decentralized, privacy-preserving L2 on Ethereum. You can think of Aztec as a private world computer with full end-to-end programmable privacy. A private world computer extends Ethereum to add optional privacy at every level, from identity and transactions to the smart contracts themselves. 

On Aztec, every wallet is a smart contract that gives users complete control over which aspects they want to make public or keep private. 

Aztec is currently in Testnet, but will have multiple privacy-preserving bridges live for its mainnet launch, unlocking a myriad of privacy preserving features.

Bringing Privacy to You

Now, several bridges, including Wormhole, TRAIN, and Substance, are connecting Aztec to other chains, adding a privacy layer to the L2s you already use. Think of it as a secure tunnel between you and any DeFi app on Ethereum, Arbitrum, Base, Optimism, or other major chains.

Here's what changes: You can now use any DeFi protocol without revealing your identity. Furthermore, you can also unlock brand new features that take advantage of Aztec’s private smart contracts, like private DAO voting or private compliance checks. 

Here's what you can do:

  • Use DeFi without revealing your portfolio: trade on Uniswap or deposit into Yearn without broadcasting your strategy to the world
  • Donate to causes without being tracked: support projects on Base without linking donations to your identity
  • Vote in DAOs without others seeing your choices: participate in governance on Arbitrum while keeping your votes private
  • Prove you're legitimate without doxxing yourself: pass compliance checks or prove asset ownership without revealing which specific assets you hold
  • Access exclusive perks without revealing which NFTs you own: unlock token-gated content on Optimism without showing your entire collection

The apps stay where they are. Your liquidity stays where it is. Your community stays where it is. You just get a privacy upgrade.

How It Actually Works 

Let's follow Alice through a real example.

Alice wants to invest $1,000 USDC into a yield vault on Arbitrum without revealing her identity. 

Step 1: Alice Sends Funds Through Aztec

Alice moves her funds into Aztec's privacy layer. This could be done in one click directly in the app that she’s already using if the app has integrated one of the bridges. Think of this like dropping a sealed envelope into a secure mailbox. The funds enter a private space where transactions can't be tracked back to her wallet.

Step 2: The Funds Arrive at the DeFi Vault

Aztec routes Alice's funds to the Yearn vault on Arbitrum. The vault sees a deposit and issues yield-earning tokens. But there's no way to trace those tokens back to Alice's original wallet. Others can see someone made a deposit, but they have no idea who.

Step 3: Alice Gets Her Tokens Back Privately

The yield tokens arrive in Alice's private Aztec wallet. She can hold them, trade them privately, or eventually withdraw them, without anyone connecting the dots.

Step 4: Alice Earns Yield With Complete Privacy

Alice is earning yield on Arbitrum using the exact same vault as everyone else. But while other users broadcast their entire investment strategy, Alice's moves remain private. 

The difference looks like this:

Without privacy: "Wallet 0x742d...89ab deposited $5,000 into Yearn vault at 2:47 PM"

With Aztec privacy: "Someone deposited funds into Yearn vault" (but who? from where? how much? unknowable).

In the future, we expect apps to directly integrate Aztec, making this experience seamless for you as a user. 

The Developers Behind the Bridges 

While Aztec is still in Testnet, multiple teams are already building bridges right now in preparation for the mainnet launch.

Projects like Substance Labs, Train, and Wormhole are creating connections between Aztec and major chains like Optimism, Unichain, Solana, and Aptos. This means you'll soon have private access to DeFi across nearly every major ecosystem.

Aztec has also launched a dedicated cross-chain catalyst program to support developers with grants to build additional bridges and apps. 

Unifying Liquidity Across Ethereum L2s

L2s have sometimes received criticism for fragmenting liquidity across chains. Aztec is taking a different approach. Instead, Aztec is bringing privacy to the liquidity that already exists. Your funds stay on Arbitrum, Optimism, Base, wherever the deepest pools and best apps already live. Aztec doesn't compete for liquidity, it adds privacy to existing liquidity.

You can access Uniswap's billions in trading volume. You can tap into Aave's massive lending pools. You can deposit into Yearn's established vaults, all without moving liquidity away from where it's most useful.

The Future of Private DeFi

We’re rolling out a new approach to how we think about L2s on Ethereum. Rather than forcing users to choose between privacy and access to the best DeFi applications, we’re making privacy a feature you can add to any protocol you're already using. As more bridges go live and applications integrate Aztec directly, using DeFi privately will become as simple as clicking a button—no technical knowledge required, no compromise on the apps and liquidity you depend on.

While Aztec is currently in testnet, the infrastructure is rapidly taking shape. With multiple bridge providers building connections to major chains and a dedicated catalyst program supporting developers, the path to mainnet is clear. Soon, you'll be able to protect your privacy while still participating fully in the Ethereum ecosystem. 

If you’re a developer and want a full technical breakdown, check out this post. To stay up to date with the latest updates for network operators, join the Aztec Discord and follow Aztec on X.

Aztec Network
Aztec Network
22 Oct
xx min read

Bringing Private Over-The-Counter (OTC) Swaps to Crypto

Transparent OTC Trades Are Holding the Industry Back

OTC trading is fundamental to how crypto markets function. It enables better price negotiations than what you'll find on public order books and facilitates trading of illiquid assets that barely exist on exchanges. Without OTC markets, institutional crypto trading would be nearly impossible. But here's the massive problem: every single OTC transaction leaves a permanent, public trace. 

Let's say you're a fund manager who needs to sell 1,000 BTC for USDC on Base. In a traditional OTC trade, your Bitcoin leaves your wallet and becomes visible to everyone on Bitcoin's blockchain. Through cross-chain settlement, USDC then arrives in your Base wallet, which is also visible to everyone on Base's blockchain. 

At this point, block explorers and analytics firms can connect these transactions through pattern analysis. As a result, your trading patterns, position sizes, and timing become public data, exposing your entire strategy.

This isn't just about privacy; transparent OTC creates serious operational and strategic risks. These same concerns have moved a significant portion of traditional markets to private off-exchange trades. 

Why Traditional Finance Moved to Private Markets

In TradFi, institutions don't execute large trades on public order books for many reasons. In fact, ~13% of all stocks in the US are now traded in dark pools, and more than 50% of trades are now off-exchange. 

They use private networks, dark pools, and OTC desks specifically because:

  • Strategy Protection: Your competitors can't front-run your moves
  • Better Execution: No market impact from revealing large positions
  • Regulatory Compliance: Meet reporting requirements without public disclosure
  • Operational Security: Protect proprietary trading algorithms and relationships

While OTC trading is already a major part of the crypto industry, without privacy, true institutional participation will never be practical. 

Now, Aztec is making this possible. 

Moving Whale-Sized Bags Privately on Aztec

We built an open-source private OTC trading system using Aztec Network's programmable privacy features. Because Aztec allows users to have private, programmable, and composable private state, users aren’t limited to only owning and transferring digital assets privately, but also programming and composing them via smart contracts.

If you’re new to Aztec, you can think of the network as a private world computer, with full end-to-end programmable privacy. A private world computer extends Ethereum to add optional privacy at every level, from identity and transactions to the smart contracts themselves. 

To build a private OTC desk, we leveraged all these tools provided by Aztec to implement a working proof of concept. Our private OTC desk is non-custodial and leverages private smart contracts and client-side proving to allow for complete privacy of the seller and buyer of the OTC.

How It Actually Works

For Sellers:

  1. Deploy a private escrow contract (only you know it exists at this stage)
  2. Initialize contract and set the terms (asset type, quantity, price)
  3. Deposit your assets into the contract
  4. After it’s been deployed, call a private API (the order book service)

For Buyers:

  1. Discover available orders through our privacy-preserving API
  2. Select trades that match your criteria
  3. Complete the seller's partial note with your payment
  4. Execute atomic swap – you get their assets, they get your payment

The Magic: Partial Notes are the technical breakthrough that make collaborative, asynchronous private transactions possible. Sellers create incomplete payment commitments that buyers can finish without revealing the seller's identity. It's like leaving a blank check that only the right person can cash, but neither party knows who the other is.

Privacy guarantees include: 

  • Complete Privacy: Neither party knows who they're trading with
  • Strategy Protection: Your trading patterns stay private
  • Market Impact Minimization: No public signals about large movements
  • Non-custodial: Direct peer-to-peer settlement, no intermediaries

Key Innovations

Private Contract Deployment: Unlike public decentralized exchanges where smart contracts are visible on the blockchain, the escrow contracts in this system are deployed privately, meaning that only the participants involved in the transaction know these contracts exist.

Partial Note Mechanism: This system uses cryptographic primitives that enable incomplete commitments to be finalized or completed by third parties, all while preventing those third parties from revealing or accessing any pre-existing information that was part of the original commitment.

Privacy-Preserving Discovery: The orderflow service maintains knowledge of aggregate trading volumes and overall market activity, but it cannot see the details of individual traders, including their specific trade parameters or personal identities.

Atomic Execution: The smart contract logic is designed to ensure that both sides of a trade occur simultaneously in a single atomic operation, meaning that if any part of the transaction fails, the entire transaction is rolled back and neither party's assets are transferred.

Build with us!

Our prototype for this is open-sourced here, and you can read about the proof of concept directly from the developer here

We're inviting teams to explore, fork, and commercialize this idea. The infrastructure for private institutional trading needs to exist, and Aztec makes it possible today. Whether you're building a private DEX, upgrading your OTC desk, or exploring new DeFi primitives, this codebase is your starting point. 

The traditional finance world conducts trillions in private OTC trades. It's time to bring that scale to crypto, privately.

To stay up to date with the latest updates for network operators, join the Aztec Discord and follow Aztec on X.

Aztec Network
Aztec Network
15 Oct
xx min read

Your Private Money Yearns for a Private Economy

Watch this: Alice sends Zcash. Bob receives USDC on Aztec. Nobody, not even the system facilitating it, knows who Alice or Bob are.

And Bob can now do something with that money. Privately.

This is the connection between private money and a private economy where that money can actually be used.

Zcash has already achieved something monumental: truly private money. It’s the store of value that Bitcoin promised (but made transparent). Like, digital gold that actually stays hidden.

But here's the thing about gold - you don't buy coffee with gold bars. You need an economy where that value can flow, work, and grow. Privately.

Money Under the Mattress

While other projects are trying to bolt privacy onto existing chains as an afterthought, Zcash is one of the oldest privacy projects in Web3. It's achieved what dozens of projects are still chasing: a truly private store of value.

Total Shielded ZEC Value (USD): Sep 16 - Oct 14 | Source: zkp.baby/

This is critical infrastructure for freedom. The ability to store value privately is a fundamental right, a hedge against surveillance, and a given when using cash. We need a system that provides the same level of privacy guarantees as cash. Right now, there's over $1.1 billion sitting in Zcash's shielded pool, private wealth that's perfectly secure but essentially frozen.

Why frozen? Because the moment that shielded $ZEC tries to do anything beyond basic transfers: earn yield, get swapped for stablecoins, enter a liquidity pool, it must expose itself. The privacy in this format is destroyed.

This isn't Zcash's failure. They built exactly what they set out to build: the world's best private store of value. The failure is that the rest of crypto hasn't built where that value can actually work.

The Privacy Landscape Has an Imbalance

What happens when you want to do more than just send money? What happens when you want privacy after you transfer your money?

Private Digital Money (i.e., “Transfer Privacy,” largely solved by Zcash):

  • Zcash: est. 2016
  • Everyone else: building variants of digital money at the transaction or identity level
    • Monero
    • Ethereum privacy pools
    • 0xbow
    • Payy
    • Every privacy stablecoin project
    • Every confidential L2
    • Every privacy project you've ever heard of

Private World Computer (i.e., After-the-Transfer Privacy):

  • Aztec

Everyone else is competing to build better ways to hide money. Zcash has already built the private store of value, and Aztec has built the only way to use hidden money.

The Locked Liquidity Problem

Here's the trillion-dollar question: What good is private money if you can't use it?

Right now, Zcash's shielded pool contains billions in value. This is money in high-security vaults. But unlike gold in vaults that can be collateralized, borrowed against, or deployed, this private value just sits there.

Every $ZEC holder faces two impossible choices:

  1. Keep it shielded and forfeit all utility
  2. Unshield it to use it and forfeit all privacy

Our demo breaks this false sense of choice. For the first time, shielded value can move to a place where it remains private AND becomes useful.

The Private World Computer

Here's how you can identify whether you’re dealing with a private world computer, or just private digital money:

Without a private world computer (every other privacy solution):

  • Receive salary privately → Can't invest it
  • Store savings privately → Can't earn yield
  • Send money privately → Recipient can't use it privately

With a private world computer (only Aztec):

  • Receive salary privately → Invest it privately
  • Store savings privately → Earn APY privately
  • Send payment privately → Recipient spends it privately

This is basic financial common sense. Your money should grow. It should work. It should be useful.

The technical reality is that this requires private smart contracts. Aztec is building the only way to interact privately with smart contracts. These smart contracts themselves can remain completely hidden. Your private money can finally do what money is supposed to do: work for you.

What We Actually Built

Our demo proves these two worlds can connect:

  1. The Vault: Zcash
  2. The Engine: Aztec (where private money becomes useful)

We built the bridge between storing privately and doing privately.

The technical innovation - "partial notes" - are like temporary lockboxes that self-destruct after one use. Money can be put privately into these lockboxes, and a key can be privately handed to someone to unlock it. No one knows who put the money in, where the key came from, or who uses the key. You can read more about how they work here. But what matters isn't the mechanism. 

What matters is that Alice's Zcash can become Bob's working capital on Aztec without anyone knowing about either of them.

As a result, Bob receives USDC that he can:

  • Earn yield on
  • Trade with
  • Pay suppliers with
  • Build a business on
  • All privately

Why This Required Starting from Scratch (and 8 years of building)

You can't bolt privacy onto existing systems. You can't take Ethereum and make it private. You can't take a transparent smart contract platform and add privacy as a feature.

Aztec had to be built from the ground up as a private world computer because after-the-transfer privacy requires rethinking everything:

  • How state is managed
  • How contracts execute
  • How proofs are generated
  • How transactions are ordered

This is why there's only one name building fully private smart contracts. From the beginning, Aztec has been inspired by the work Zcash has done to create a private store of value. That’s what led to the vision for a private world computer.

Everyone else is iterating on the same transfer privacy problem. Aztec solves a fundamentally different problem.

The Obvious Future

Once you see it, you can't unsee it: Privacy without utility is only the first step.

Every privacy project will eventually need what Aztec built. Because their users will eventually ask: "Okay, my money is private... now what?"

  • Zcash users will want their $ZEC to earn yield
  • Privacy pool users will want to do more than just mix
  • Private stablecoin users will want to actually… use their stablecoins

This demo that connects Zcash to Aztec is the first connection between the old world (private transfers) and the new world (private everything else).

What This Means

For Zcash Holders: Your shielded $ZEC can finally do something without being exposed.

For Developers: Stop trying to build better mattresses to hide money under. Start building useful applications on the only platform that keeps them private. 

For the Industry: The privacy wars are over. There's transfer privacy (solved by Zcash) and after-the-transfer privacy (just Aztec).

What’s Next? 

This demo is live. The code is open source. The bridge between private money and useful private money exists.

But this is just the beginning. Every privacy project needs this bridge. Every private payment network needs somewhere for those payments to actually be used.

We're not competing with transfer privacy. We're continuing it.

Your private money yearns for the private economy.

Welcome to after-the-transfer privacy. Welcome to Aztec.