Bitflow and Pontis Introduce Bitcoin Runes AMM on Stacks Offering Scalable and Secure Trading for BTC
In Brief
Bitflow and Pontis introduce Bitcoin Runes Automated Market Maker on Stacks, addressing issues like high fees, slow transaction speeds, and market limitations.
The first-ever Bitcoin Runes Automated Market Maker (AMM) has been introduced by Bitflow and Pontis on Stacks, the top Bitcoin Layer 2 solution. This ground-breaking platform tackles Runes’ main issues, including high fees, sluggish transaction speeds, and market limitations like transaction sniping and pre-splitting UTXOs.
Bitflow now offers quick, inexpensive transactions in an intuitive interface thanks to the most recent Stacks Nakamoto Upgrade. The Bitflow liquidity pools improve user efficiency by providing AMM-based pricing for all trade sizes rather than depending on marketplace listings.
This launch, which provides scalability and security for Bitcoin assets, is an important step forward in Bitcoin DeFi. With Bitcoin-level immutability, users may now enjoy safe transactions and speedy confirmations.
Bitcoin has recovered its attractiveness, according to Bitflow’s co-founder, who also emphasized that the Runes AMM provides additional incentives for Bitcoin transactions, which supports network fees. He went on to say that the Nakamoto update has opened up a new DeFi experience for Bitcoin and that liquidity now flowed smoothly across innovative products thanks to their collaboration with Pontis.
The Stacks’ Power: The Nakamoto Upgrade
The Stacks Nakamoto Upgrade is activated in Bitcoin Block #867,867 at the same time as the Runes AMM debut. This update ensures Bitcoin-level finality while cutting down Stacks’ block delays from ten minutes to just a few seconds. The integration of Bitflow infrastructure and the Pontis bridge greatly increases the efficiency of the Runes AMM.
Furthermore, Nakamoto provided Bitcoin finality, which means that transactions can’t be undone as easily as Bitcoin transactions and stacks no longer split. With only one confirmation, users may now safely trade Bitcoin assets on Stacks, which support BTC, Runes, BRC-20 tokens, and more.
In contrast to existing bridge systems, which often require 3-6 Bitcoin block confirmations, native BTC deals are secured rapidly with this strong infrastructure, requiring only one Bitcoin block and one Stacks block (5–10 seconds).
Decentralized Security with Leading Signers in the Industry
The Pontis Bridge, a federated multisig technology that improves security and dependability for cross-chain transactions, is used by Bitflow’s Runes AMM. This strategy guarantees more decentralization than single-entity custodians sometimes seen in other Bitcoin AMMs, and it is backed by industry giants such as Ordinals wallet Xverse, Bitcoin custodial service Asigna, OrdinalsBot, and DeFi protocol Liquidium.
The Runes AMM’s mint and swap transactions now have complete Bitcoin finality and reorganization protection thanks to the Nakamoto update. Decentralized transfer of Bitcoin assets on and off Stacks will be further enabled when Pontis updates its bridge to fully include sBTC later in 2024.
According to a key contributor for Pontis, their goal was to use a group of reliable node operators to provide safe, smooth bridging for Runes and other assets. According to him, the collaboration with Bitflow facilitated communication between BTC traders and Runes via Stacks’ liquidity pools, hastening the acceptance of Runes and furthering the development of Bitcoin.
Enhancing the User Experience for Bitcoin Assets with Real AMM
For Bitcoin assets, the Runes AMM’s Uniswap-style liquidity pool structure guarantees deep liquidity, little slippage, and quick price discovery. Stacks abstracts the user experience, allowing Bitflow to offer a Layer-1 Bitcoin DEX through Stacks, which is made possible by Nakamoto’s reorg protects and quick block timings.
The Runes AMM’s smart contracts are located on Stacks and communicate with Pontis to facilitate smooth Layer-1 integration. With wallets like Xverse and Leather on Stacks, users may exchange Bitcoin assets directly, doing away with the need for manual price maintenance or marketplace listings.
Xverse’s Chief Strategy Officer expressed excitement about collaborating with Bitflow to enhance the Runes trading experience. He emphasized how Bitflow was expanding the possibilities for trading Bitcoin tokens and how their collaborative efforts were fostering innovation.
Alongside sBTC, the Runes AMM debuted on December 17, 2024. The Pontis Bridge, which is integrated into the Bitflow app, enables users to transfer Bitcoin and Runes to Stacks, enabling quick transactions fueled by Nakamoto. The sBTC-Runes liquidity pools provide an extra 5% BTC return on all sBTC deposits at launch, and swaps between native BTC and STX are accessible.
The adoption of BTC and Runes on Stacks will be further accelerated by Bitflow and Pontis, who will simplify the user experience and increase trading possibilities, including swaps for native Bitcoin assets, as the network grows with the improvements scheduled for December.
Along with USDh, the first Bitcoin-backed synthetic dollar, the liquidity pools will initially support a variety of well-known Runes, such as BILLION•DOLLAR•CAT, DOG•GO•TO•THE•MOON, LIQUIDIUM•TOKEN, BASED•INTERNET•PANDA, SHORT•THE•DOLLAR, and POOKA•CANNOT•BE•STOPPED.
Depending on user demand, more assets including native BTC assets like $ORDI and $TRIO and BRC-20 tokens will be added. In addition to conducting regular checks by reputable Bitcoin L2 auditing companies like Coinfabrik, StrataLabs, and Clarity Alliance, Bitflow also provides a $100,000 reward program through Immunefi to further strengthen the platform’s security.
For detailed audit information, please visit Bitflow’s Audit Documentation and Pontis Audit Documentation
Disclaimer
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
