Author: Leilani, Crypto Researcher; Translation: Golden Finance 0xjs
The lack of BRC20 token swap functionality has become a major factor hindering the development of DeFi on the Bitcoin network. But the launch of brc20-swap will change the rules of the game.
It’s been a whirlwind for BRC20 recently, with SATS seeing an incredible rise. Not only that, ORDI’s listing on Binance marks a new phase in the BRC20 trend.
This article takes a look at brc20-swap, a game changer in the BRC20 token swap space that will breathe life into DeFi on Bitcoin.
New Player: brc20-swap
brc20-swap is the latest brainchild of Unisat. This user-friendly product allows for quick and easy exchange of BRC20 tokens without the need for middlemen.
Like AMM DEX, brc20-swap is built around two pillars:
> Traders: Exchange BRC20 tokens quickly and easily.
>LP: Provide liquidity for BRC20 token pairs and receive transaction fees in return.
In brc20-swap, Sats tokens are used to pay transaction fees. A large portion of these fees is returned to liquidity providers.
Unisat is pilot testing BRC20-Swap with selected institutions and plans to make it available to everyone soon.
brc20-swap journey
Unisat Wallet announced brc20-swap to increase BRC20 token liquidity. They launched early access, and soon after, they launched an exclusive Bitcoin non-fungible token brc20-swap Prime Access to commemorate the event. Currently, only addresses that are whitelisted or have the brc20-swap Prime Access inscription on the mainnet can experience brc20-swap, which initially supports 14 BRC20 tokens with certain trading activity and trading volume.
brc20-swap practical operation
brc20-swap consists of swap, pool, and data overview sections. To start a swap, users first deposit BRC20 tokens into the brc20-swap module using “inscribe TRANSFER”. The platform focuses on standalone execution or modular implementation, ensuring a safer, problem-free experience. It also offers two modes – black module and white module – to enhance user interaction and simplify withdrawals.
The big future of brc20-swap
The Ordinals ecosystem may face some liquidity and accessibility challenges, but brc20-swap is bound to be a game changer. As the first tool to increase liquidity in the Ordinals ecosystem, it is expected to reinvigorate the market. Unisat has also made a significant commitment to support the BRC20 standard development process by donating a portion of the brc20-swap transaction fees to the L1 Foundation.
Additionally, they promote open source by publicly sharing the complete brc20-swap code. Unisat’s focus is not only on its own development, but also on improving the entire Ordinals ecosystem.
I'm excited to see the potential of the Bitcoin DeFi ecosystem being unlocked, thanks to the efforts of contributors like Unisat. I can't wait to see what the future holds, especially upcoming features like Dex, lending, derivatives, and options.
Conclusion
All in all, brc20-swap will bring exciting innovation to the Bitcoin space, just like what Ethereum has experienced.
