Trump's victory will create the most favorable U.S. policy environment for Bitcoin in history. Coupled with the ongoing backdrop of the Federal Reserve's interest rate cuts, multiple factors are intertwining, Bitcoin is continuously breaking historical highs, and a new round of Bitcoin ecosystem explosion is on the verge of happening.
As a core public chain that has been deeply involved 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, in April this year, CKB launched the RGB++ protocol and upgraded it to RGB++ Layer in July.
RGB++ is not only an asset issuance protocol on the Bitcoin mainnet but also a smart contract layer and cross-chain interoperability layer. It has currently 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 wallets such as Gate.io, CoinEx, Element, and Wizz.
As one of the representatives of CKB RGB++ infrastructure, UTXOSwap is a native DEX of the Bitcoin ecosystem, effectively addressing 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 qualifying trades and submits them on-chain.
For a more detailed interpretation of the UTXOSwap product, please refer to “Interpreting UTXOSwap: How the Number One DEX on CKB Was Created.”
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 significantly enhance transaction efficiency;
- Intentions that do not result in a transaction 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 has supported RGB++ and assets from the CKB ecosystem, and in the future, it will expand to support other BTC ecosystem assets such as Runes, 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 security needs of assets. With the maturation of Bitcoin ecosystem solutions such as Ordinals, Runes, RGB, and RGB++, asset issuance is becoming 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, due to the slow block speed and limited scripting capabilities of the Bitcoin mainnet, it faces issues of insufficient liquidity and high transaction costs. UTXOSwap cleverly addresses these challenges using RGB++'s isomorphic binding technology, Leap's non-bridge 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 safely transfer the "Moon" token to the CKB blockchain using Leap's non-bridge cross-chain method, and then create a liquidity pool in UTXOSwap, all without any permission.
Creating 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 approximately $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 realize cross-chain swaps and other full-chain interaction scenarios based on RGB++'s Leap non-bridge cross-chain functionality. For example, exchanging Seal issued on the BTC mainnet for fulSeal on the Doge chain:
- Leap the Seal from 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 an intent resolver and corresponding signing tools or wallets to link all steps together, allowing users to complete the above operations in one step during the operational experience.
Assets issued through RGB++ can be freely transferred on Bitcoin and all UTXO chains, while UTXOSwap serves 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 into applications or connecting to UTXOSwap, users can receive one-stop services. UTXOSwap, built on CKB and RGB++, 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, brings an exceptional experience to users, 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.