Bitflow has raised Bitcoin DeFi (BTCFI) to a level where it can compete with Ethereum’s established DeFi ecosystem by announcing many new features for its Bitcoin Layer 2 (L2) decentralized exchange (DEX). The volume of transactions on Bitcoin DeFi has increased dramatically during the last several months. Other blockchain ecosystems have more advanced DeFi functions, thus its detractors say it still has a long way to go. With the improvements made to Bitflow’s Liquidity Hub, Bitcoin DeFi is now on par with Ethereum’s DeFi in terms of efficiency and complexity, and it will be easier to provide an ideal decentralized finance experience on Stacks.
Bitflow’s Liquidity Hub upgrade takes successful cues from the most popular and user-friendly Ethereum Decentralized Exchanges and applies them to the BTCFi world.
Inch1 like Multi-Hop Swaps: Officially, Multi-hop Swaps are now supported by Bitflow. Uniswap V3, Sushi Swap, and Inch1, three of the most prominent Ethereum DEXs, all allow for multi-hop swaps. If a user wants to swap tokens but can’t find a direct liquidity pool for their preferred pair, they may utilize intermediary pairings instead. By using multi-hop swaps, consumers have access to liquidity from many pools. This ensures that trades may still be done, which is especially helpful when there isn’t enough liquidity in one pool for a direct swap. More competitive trade prices are typically found via multi-hop swaps because they route trades across numerous pairings. As a consequence, the user may experience less slippage and better rates.
Curve-Style Stable Swaps: Keeping trading costs low and slippage to a minimum by concentrating liquidity on comparable assets. For assets with comparable prices, the goal of Curve’s algorithm is to reduce slippage, which is defined as the gap between the actual price and the expected price. This works well for pegged assets or stablecoins with a 1:1 exchange ratio.
Uniswap V2 AMM Expansion: Allows for the direct swaps between SIP10 or BTC tokens and other tokens, serving as the base asset for multi-hop trades.
Dylan Floyd, CEO/Co-Founder of Bitflow stated:
“Bitflow’s expansion as a decentralized exchange aggregator on Stacks connects fragmented Bitcoin liquidity, bringing more users into the Stacks and Bitcoin ecosystem. Our deep liquidity infrastructure, including curve-like stable pools and Uniswap-style pools, offers the best rates and a simple interface. This is a huge leap forward for DeFi on Stacks.”
Bitflow, the latest addition to the Stacks Liquidity Hub, is revolutionizing Bitcoin DeFi with its Deep Liquidity Pools and Multi-Hop Swaps. Through the use of Uniswap v2 AMM and Curve Style Stable pools. Users may expect the best value for their trades on Bitflow, which is well-positioned to become the top Bitcoin liquidity center by providing them with easy and affordable trading experiences.
The team’s vision is to become the go-to decentralized exchange for bitcoiners. it aims to achieve this by providing an exceptional user experience and focusing on key components of decentralized finance, such as stable swaps, deep liquidity pools, aggregating routes and dexes, and more.
Trading Routes: Bitflow now has numerous STX trading channels, so users can perform direct swaps with a simple UI and without leaving the app or opening different dexes. Additional trading routes will be added when they are released.
On a decentralized exchange (DEX), trading routes specify the pathways that trades follow between various tokens, deciding how trades go from one token to another via intermediary tokens.
Multi-Hop Swaps: The team has implemented Multi-hops Swaps, which make use of several Dexes and trading routes. The best prices are guaranteed because the most efficient channels across several liquidity pools are identified.
The newest offerings include stSTX and USDA Multi-Hop swaps for Velar, Alex, and Arkadiko pools, as well as any SIP10 paired with STX.
Users will be able to trade USDC for any SIP10 token paired with STX using Multi-Hops, which is also currently underway.
Curve-Style Stable Swaps: Keep trading costs low and slippage to a minimum by concentrating liquidity on comparable assets.
Uniswap V2 AMM Expansion: Makes it possible to transfer base assets for multi-hop direct swaps between SIP10 or BTC tokens and other tokens.
Enhanced Trading Efficiency: Users may easily locate the most favorable rates without causing liquidity to be fragmented among several pools.
Optimized Token Pools: Token pools that have both tokens reserved facilitate trades, increasing the number of possible multi-hop options and routes.
Benefits for Traders and LPs: Trading fees are paid to LPs in exchange for their liquidity, while traders obtain the best pricing.
Conclusion
With cutting-edge features like deep liquidity pools, improved AMM logic, and multi-hop swaps, Bitflow is leading the way in Bitcoin DeFi. Bitflow is dedicated to building the best DEX possible and serving as a liquidity center for all Stacks and Bitcoin users and developers. The team aims to do this by increasing trading routes while being vigilant about security and actively engaging with the community.