The Bitcoin ecosystem is ready to take off. UTXOSwap built on RGB++ will lead a new era of BTCFi

Author: CKB

Trump's victory will create the most Bitcoin-friendly U.S. policy environment in history. Coupled with the Federal Reserve's continued interest rate cuts, multiple factors are intertwined and integrated. Bitcoin is constantly breaking through historical highs, and a new round of explosion in the Bitcoin ecosystem is ready to take off.

As a core public chain that has been deeply involved in the Bitcoin ecosystem for many years, CKB has significant advantages in security, programmability, technology accumulation, ecological construction, etc., and will surely become the first choice for Bitcoin overflow funds. As part of BTCKB's 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 smart contract layer and cross-chain interoperability layer. It has completed the construction of BTCFi's complete infrastructure such as DEX, stablecoin, launchpad, etc., and is highly compatible with CKB's lightning network Fiber Network. It has been widely supported by Gate.io, CoinEx, Element, Wizz wallet, etc.

As one of the representatives of CKB RGB++ infrastructure, UTXOSwap is a native DEX of the Bitcoin ecosystem. It can effectively solve the current problems of poor liquidity and high transaction costs of BTC ecosystem assets, reduce the cost of asset issuance and transactions, and empower various BTCFi applications to promote the vigorous development of the Bitcoin ecosystem.

UTXOSwap: Pioneer DEX in BTC Ecosystem

UTXOSwap is a Bitcoin ecosystem native DEX protocol built on CKB's improved UTXO model (Cell) and RGB++. It provides users with a better trading experience and better transaction prices through intent-based transactions, and aims to become an important infrastructure for Bitcoin Finance (BTCFi).

In terms of technical implementation, when users use UTXOSwap to conduct transactions, there are mainly three steps:

Intent Expression: Users express their trading intent by signing a message that includes the type of trading asset, amount, and other parameters.

Aggregation and matching: The aggregator collects the transaction intentions of all users, searches for on-chain and off-chain liquidity resources, and matches the intentions.

Transaction submission: The aggregator assembles all eligible transactions and submits them to the chain.

For a more detailed interpretation of the UTXOSwap product, please refer to (Interpretation of UTXOSwap: How the number one DEX on CKB was created).

UTXOSwap has many innovations and advantages:

UTXOSwap is able to achieve off-chain matching and on-chain verification, so that liquidity providers other than AMM can be connected during the matching stage;

The parallel feature of UTXO can increase transaction efficiency exponentially;

No gas fee will be generated if there is no intention to trade, and the gas for normal transactions is also low enough to be negligible. If some trading pairs are too popular, the local fee model can be used to isolate their impact on other trading pairs.

Currently, UTXOSwap already supports assets from the RGB++ and CKB ecosystems. In the future, it will expand support for other BTC ecosystem assets such as Runes, gradually covering all UTXO ecosystems (such as Bitcoin, Dogecoin, Cardano, Litecoin, Fractal, etc.), building a full UTXO ecosystem intention transaction network, and providing professional liquidity services for the liquidity needs of the Lightning Network, promoting the prosperity and development of the Lightning Network ecosystem.

UTXOSwap: The liquidity hub of the BTC ecosystem

For assets, safety and liquidity are crucial considerations.

The Bitcoin blockchain is based on the PoW mechanism and has been running stably for nearly 16 years. It is the safest asset issuance platform that meets the needs of asset security. With the maturity of Bitcoin ecological solutions such as Ordinals, Runes, RGB, and RGB++, asset issuance has become more convenient. In the future, diversified assets such as stablecoins, RWA compliant assets, and meme coins on the Bitcoin mainnet will grow rapidly. However, the Bitcoin mainnet faces problems of insufficient liquidity and high transaction costs due to its slow block speed and limited scripting capabilities. UTXOSwap cleverly solves these challenges by using RGB++'s isomorphic binding technology, Leap's bridgeless cross-chain function, and UTXO's "off-chain calculation, on-chain verification" characteristics.

Suppose Alice dreams of starting a business in the Bitcoin ecosystem and decides to issue an innovative token called "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 through Leap's bridgeless cross-chain method, and then set up a liquidity pool in UTXOSwap without any permission.

Building a pool in UTXOSwap will not only improve asset liquidity, but also bring the following advantages as product development and updates:

Intent-based hybrid trading model: UTXOSwap can achieve off-chain matching and on-chain transactions, and plans to expand functions, such as supporting Dutch auction logic, dynamic pricing, and AMM guaranteed transactions after market makers compete.

Customized curves and fee rates: UTXOSwap's AMM model supports trading pair creators to customize pricing curves (such as curve adaptation to stablecoins) and select different fee rates to maximize LP returns.

Ultra-low Gas Fee and flexible payment: The gas fee for a single transaction is as low as about $0.000002, and it supports off-chain verification to avoid invalid chain uploads. Users can pay with any token, and the system automatically handles the conversion.

Multi-chain wallet compatibility: supports Bitcoin, Ethereum, Nervos wallet and Nostr login. More multi-chain wallets will be expanded in the future to optimize user experience.

In the future, UTXOSwap can also realize cross-chain swap and other full-chain interaction scenarios based on RGB++'s Leap bridgeless cross-chain function. Take the exchange of Seal issued on the BTC mainnet for fulSeal on the Doge chain as an example:

Leap Seal from BTC to CKB chain (unbind Bitcoin UTXO bound to Seal and bind it to CKB UTXO)

Initiate a swap from Seal to fulSeal in UTXOSwap on the CKB chain (Seal — → fulSeal)

Leap the obtained fulSeal to the Doge chain (bind fulSeal to a UTXO on the Doge chain)

In actual use, UTXOSwap will provide an intent solver and corresponding signature tools or wallets to connect all the steps in series, allowing users to complete the above operations in one step in the operational experience.

Assets issued through RGB++ can be freely transferred on Bitcoin and all UTXO chains, while UTXOSwap acts as the central hub of liquidity in cross-chain interaction scenarios, helping any asset to achieve cross-chain swaps.

In addition, UTXOSwap also provides API interfaces and SDKs to facilitate developers to quickly and efficiently access, greatly reducing the threshold for BTCFi development. Directly integrating or accessing UTXOSwap in the application can provide users with one-stop services. UTXOSwap built on CKB and RGB++ will become an important part of the UTXO ecosystem, greatly enhancing the flexibility and functionality of the entire system.

Conclusion

The prosperity of the Bitcoin ecosystem is inseparable from the strong support of infrastructure. UTXOSwap, with its innovative technology, brings users the ultimate experience and demonstrates the huge potential of CKB RGB++. It is a powerful booster of the Bitcoin ecosystem and a solid foundation for the future development of BTCFi.