Trump's victory will create the most favorable U.S. policy environment for Bitcoin in history. Coupled with the ongoing interest rate cuts by the Federal Reserve, multiple factors are intertwining, Bitcoin is continuously breaking historical highs, and a new round of explosion in the Bitcoin ecosystem is on the verge of happening.
As a core public chain deeply engaged in the Bitcoin ecosystem for many years, CKB has significant advantages in security, programmability, technical accumulation, and ecological construction, and will undoubtedly become the first choice for Bitcoin overflow funds. As part of the BTCKB strategy, CKB launched the RGB++ protocol in April this year and upgraded it to RGB++ Layer in July.
RGB++ is not only an asset issuance protocol on the Bitcoin mainnet but also a layer for smart contracts and cross-chain interoperability. It has completed the construction of DEX, stablecoins, launchpads, and other BTCFi infrastructure, and is highly compatible with CKB's Lightning Network Fiber Network, receiving widespread support from Gate.io, CoinEx, Element, Wizz Wallet, and others.
As one of the representatives of CKB RGB++ infrastructure, UTXOSwap is a native DEX of the Bitcoin ecosystem, effectively solving the current issues of poor liquidity and high transaction costs of BTC ecosystem assets, reducing the costs of asset issuance and trading while empowering various BTCFi applications and promoting the vigorous development of the Bitcoin ecosystem.
UTXOSwap: The Pioneer DEX of the BTC Ecosystem#
UTXOSwap is a native DEX protocol of the Bitcoin ecosystem built on the improved UTXO model (Cell) of CKB and RGB++. It provides users with a better trading experience and better transaction prices through intent-based transactions, aiming to become an important infrastructure for Bitcoin finance (BTCFi).
In terms of technical implementation, when users trade using UTXOSwap, it mainly involves three steps:
- Intent Expression: Users express their trading intentions by signing a message that includes the type of trading asset, amount, and other parameters.
- Aggregation and Matching: The aggregator collects all users' trading intentions, searches for on-chain and off-chain liquidity resources, and performs intent matching.
- Transaction Submission: The aggregator assembles all qualified transactions and submits them on-chain.
For a more detailed interpretation of the UTXOSwap product, please refer to “Interpreting UTXOSwap: How the Top DEX on CKB is Made.”
UTXOSwap has many innovations and advantages:
- UTXOSwap can achieve off-chain matching and on-chain verification, allowing liquidity providers beyond AMM to be integrated during the matching phase;
- The parallel characteristics of UTXO can greatly enhance transaction efficiency;
- Intentions that do not result in transactions will not incur gas fees, and the gas fees for normal transactions are low enough to be negligible. If certain trading pairs are too popular, a local fee model can be used to isolate their impact on other trading pairs.
Currently, UTXOSwap supports RGB++ and CKB ecosystem assets, and will expand to support other BTC ecosystem assets like Runes in the future, gradually covering all UTXO ecosystems (such as Bitcoin, Dogecoin, Cardano, Litecoin, Fractal, etc.), building a complete UTXO ecosystem intent trading network, and providing professional liquidity services to meet the liquidity needs of the Lightning Network, promoting the prosperous development of the Lightning Network ecosystem.
UTXOSwap: The Liquidity Center Hub of the BTC Ecosystem#
For assets, security and liquidity are crucial considerations.
The Bitcoin blockchain, based on the PoW mechanism, has been operating stably for nearly 16 years, making it the safest asset issuance platform, meeting the demand for asset security. As solutions like Ordinals, Runes, RGB, and RGB++ mature in the Bitcoin ecosystem, asset issuance becomes increasingly convenient, and the future will see rapid growth in diverse assets such as stablecoins, RWA compliant assets, and meme coins on the Bitcoin mainnet. However, the Bitcoin mainnet faces issues of insufficient liquidity and high transaction costs due to slow block speeds and limited scripting capabilities. UTXOSwap cleverly addresses these challenges using RGB++'s homomorphic binding technology, Leap's bridge-less cross-chain functionality, and the UTXO's "off-chain computation, on-chain verification" characteristics.
Suppose Alice, with dreams of starting a business in the Bitcoin ecosystem, decides to issue an innovative token named "Moon" on the Bitcoin mainnet based on the RGB++ protocol. After the token is issued, she can securely transfer the "Moon" token to the CKB blockchain using Leap's bridge-less cross-chain method, and then create a liquidity pool in UTXOSwap without any permissions throughout the process.
Building a pool in UTXOSwap not only enhances asset liquidity but also brings the following advantages as product development updates:
- Intent-based Hybrid Trading Model: UTXOSwap can achieve off-chain matching and on-chain transactions, and plans to expand functionalities such as supporting Dutch auction logic, dynamic pricing, and AMM guaranteeing transactions after market maker competition.
- Customizable Curves and Fee Rates: UTXOSwap's AMM model supports trading pair creators to customize pricing curves (such as curve adaptation for stablecoins) and choose different fee rates to maximize LP returns.
- Ultra-low Gas Fees and Flexible Payments: The gas fee for a single transaction is as low as about $0.000002, and it supports off-chain verification to avoid invalid on-chain transactions. Users can pay with any token, and the system automatically handles conversions.
- Multi-chain Wallet Compatibility: Supports Bitcoin, Ethereum, Nervos wallets, and Nostr login, with plans to expand more multi-chain wallets in the future to optimize user experience.
In the future, UTXOSwap can also achieve cross-chain swaps and other full-chain interaction scenarios based on RGB++'s Leap bridge-less cross-chain functionality. For example, exchanging Seal issued on the BTC mainnet for fulSeal on the Doge chain:
- Leap the Seal on BTC to the CKB chain (unbind the Bitcoin UTXO bound to Seal and rebind it to the CKB UTXO)
- Initiate a swap from Seal to fulSeal on UTXOSwap on the CKB chain (Seal — → fulSeal)
- Leap the obtained fulSeal to the Doge chain (bind fulSeal to a certain UTXO on the Doge chain)
In practical use, UTXOSwap will provide intent solvers and corresponding signing tools or wallets to connect all steps, allowing users to complete the above operations in one go during the operational experience.
Assets issued through RGB++ can be freely transferred across Bitcoin and all UTXO chains, while UTXOSwap acts as a liquidity center hub in cross-chain interaction scenarios, facilitating cross-chain swaps for any asset.
Additionally, UTXOSwap provides API interfaces and SDKs for developers to quickly and efficiently integrate, significantly lowering the development threshold for BTCFi. By integrating directly within applications or connecting to UTXOSwap, users can receive one-stop services. Built on CKB and RGB++, UTXOSwap will become an important part of the UTXO ecosystem Lego, greatly enhancing the flexibility and functionality of the entire system.
Conclusion#
The prosperity of the Bitcoin ecosystem relies on strong support from infrastructure. UTXOSwap, with its innovative technology implementation, provides users with an exceptional experience, showcasing the immense potential of CKB RGB++, serving as a powerful booster for the Bitcoin ecosystem and a solid foundation for the future development of BTCFi.