What is the Bitflow StableSwap?
An overview of the Bitflow StableSwap, the pioneering protocol crafted for efficient stablecoin exchanges, secured by Bitcoin finality.
Last updated
An overview of the Bitflow StableSwap, the pioneering protocol crafted for efficient stablecoin exchanges, secured by Bitcoin finality.
Last updated
Bitflow StableSwap is the first protocol designed to enable users to efficiently swap stable assets, including stablecoins, within the Bitcoin ecosystem. It operates on the Stacks layer, a platform specifically designed to facilitate smart contracts and decentralized applications on Bitcoin.
Bitflow StableSwap employs a unique invariant—a mathematical formula that determines the pricing of tokens—that strikes a balance between constant sum and constant product curves. This design ensures optimal exchange rates with minimal slippage, making stablecoin trades exceptionally efficient.
Bitflow StableSwap is crafted to offer extremely efficient trades with Bitcoin finality, meaning transactions settle securely and irrevocably on the Bitcoin network. For users, this means lower fees and more profitable trades, all while keeping their assets secure and in their control.
Much like Curve Finance on the Ethereum network, Bitflow’s StableSwap is designed to offer low-slippage, low-fee exchanges between similarly priced assets. It is tailor-made for stablecoins—digital currencies pegged to stable assets, such as fiat currencies or commodities.
At its core, a Bitflow Stable Pool is a smart contract that contains the logic for exchanging stable tokens based on the StableSwap invariant. Bitflow offers various pool types:
Base Pools: These are basic implementations of the StableSwap invariant, designed for swapping between two or more stable tokens.
Lending Pools: These are pools that go beyond swapping and incorporate lending functionalities.
Metapools: These are pools that enable the exchange of one or more tokens with the tokens of underlying base pools.
Beyond its stable pools, Bitflow is also planning to integrate with other DeFi protocols, allowing for seamless swaps between various asset classes.