Bitswap is an Exchange Decentralized with Automated Market Maker on RGB Protocol and Lightning Network
Bitswap is a groundbreaking protocol that operates at the forefront of decentralized finance (DeFi) within the Bitcoin ecosystem. This protocol seamlessly combines the principles of Automated Market Makers (AMMs), the speed and scalability of the Lightning Network, the data richness of the RGB protocol, and the flexibility of Discreet Log Contracts (DLCs) to facilitate decentralized exchange on the Bitcoin blockchain.
At its core, Bitswap serves as the catalyst for trustless and censorship-resistant peer-to-peer asset exchange on the Bitcoin network. Here's a breakdown of how it integrates various technologies:
Automated Market Maker (AMM): Bitswap leverages AMM principles to create liquidity pools where users can seamlessly trade Bitcoin and other assets without the need for traditional order books. This ensures continuous availability of assets for trading and helps determine prices through an algorithmic approach.
Lightning Network: By incorporating the Lightning Network, Bitswap introduces rapid transaction settlement and significantly reduces the cost of moving assets between users. This enables near-instant swaps and microtransactions, enhancing the user experience and reducing blockchain congestion.
RGB Protocol: Bitswap utilizes the RGB protocol to tokenize assets and others on the Bitcoin blockchain securely with RGB25/RGB20. RGB brings the capability to issue and transfer a wide range of digital assets (RGB20) and tokenized securities (RGB25), directly on the Bitcoin network. This ensures a diverse and comprehensive marketplace within the Bitswap ecosystem.
Discreet Log Contracts (DLCs): To enable smart contracts and conditional agreements, Bitswap integrates DLCs. These contracts allow users to create custom, trustless arrangements for asset swaps, hedging, and derivatives trading. The privacy and security of DLCs ensure that counterparties can engage in complex financial transactions without exposing sensitive information.
Decentralized Exchange (DEX): Bitswap's DEX functionality empowers users to trade assets in a truly decentralized and non-custodial manner. Users maintain control of their private keys and assets throughout the exchange process, enhancing security and eliminating the risk associated with centralized exchanges.
Liquid Network: Bitswap will use the sidechain for allow low fees and UTXOs cheap, beyond to be cross-chain DEX.
SSI: Bitswap utilizes SSI, which will allow use have more privacy through independent identity and without need generate UTXOs.
Wallets: Bitswap uses Bitmask, allowing major options to make payments over Lightning Network, access to the DeFi on Bitcoin and many more.
Prime: Bitswap will use Prime as scalable solution to allow fast transactions and low fees without need soft forks
In summary, Bitswap combines AMM liquidity, Lightning Network speed, RGB protocol asset diversity, DLCs for smart contracts, and a decentralized exchange to create a cutting-edge DeFi solution within the Bitcoin ecosystem. This protocol opens up new possibilities for secure, private, and efficient peer-to-peer asset exchange while leveraging the security and trust associated with the Bitcoin blockchain.
- Core - Core functionality about Bitswap with audited code
- Demo - Demo RGB20 Contract for users test DEX via CLI
- PoC - Proof of Concept and validation of the intial concept
- Assets DEX - Future assets created by Bitswap team
- API - Future API created by Bitswap team
- BITP - Core and specs about DEX
- SDK - SDK for integrations in wallets, exchanges, hardwallets, etc.
- Documentation - Documentation detailed around Bitswap
- FAQ - Frequently asked question about Bitswap
- Interface - Future interface for DEX by Bitswap team
Soon
The Bitswap project is not owned by Bitlight Labs
The project will be discontinued in 2024 December