jakiro
Source: CKB Chinese
UTXOSWAP implements a hybrid trading model based on intent, while supporting the automatic city merchant (AMM) mechanism and the ORDER BOOK matching.
CHAINCATCHER News, the new BIFI protocol UTXOSWAP released a light paper and scheduled to open the public beta in late May.The UTXOSWAP team won the first place in the CKB ecosystem in the Bitcoin DevCon hacker, and has reached a strategic cooperation with CKB ECO Fund.
It is reported that UTXOSWAP is a CKB -based decentralized transaction (DEX) protocol, which aims to define a new paradigm of Bitcoin Finance.UTXOSWAP uses the intention -centered trading model to use the advantages of UTXO programming model.Currently supporting RGB ++ and CKB ecological asset transactions, and plans to expand in the future to other BTC ecological assets including Ordinals and Runes.
UTXOSWAP implements a hybrid trading model based on intent, while supporting the automatic city merchant (AMM) mechanism and the ORDER BOOK matching.In addition, UTXOSWAP has SWAP transactions almost 0 GAS and can be paid by any tokens, supporting user -defined AMM curves and handling rates, and DAPP native multi -chain wallets and handling rates of SWAP transactions, andL1/L2 has the advantages of inductive operation.
The following content is from “UTXOSWAP Light Paper”, the original link:
https://utxoswap.gitbook.io/zh
UTXOSWAP light book: Define the new paradigm of Bitcoin Finance
UTXOSWAP Overview
UTXOSWAP is a decentralized exchanges (DEX) protocol based on the BTC ecosystem, which aims to provide users with better transaction experience and better transaction prices through Intent-Based transactions.At present, UTXOSWAP will support the assets of RGB ++ and CKB ecology for transactions. In the future, it will also expand support for other BTC ecological assets such as Runes.
At present, the common DEX mainly includes two forms: order book and automated as a market business (AMM). Among them, the order book DEX is limited by the high cost of trading on the chain and has not obtained the success of the centralized exchange.AMM has obtained a wider recognition with its simple and direct transaction concept.However, with the outbreak of transaction volume and liquidity on the chain, the problems of AMM have gradually appeared, such as low efficiency, GAS Fee competition, and MEV rampant.As a result, the Intent-Based trading model began to appear, and it combined the advantages of order books and AMM to maximize the experience and benefits of users and municipal merchants.UTXOSWAP uses intention -based models as its core, using UTXO programming advantages and newly designed DEX.
Thanks to the characteristics of UTXO, UTXOSWAP has a lot of innovation and advantages: in the trading mode, UTXOSWAP can achieve chain matching and verification on the chain, so that during the matching stageThe parallel characteristics of UTXO can also make transaction efficiency successfully; on the GAS Fee, there is no intention of the transaction to generate the GAS Fee, and the normal transaction is also low. If some transactions are too hot, the transaction is too hot.They can also use the Local Fee mode to isolate their impact on other transactions.
UTXOSWAP is a very important infrastructure of the BTC ecosystem. It can solve the problem of poor liquidity and high transaction costs of BTC ecological assets, reduce the cost of asset issuance and transaction, and provide more new gameplay.UTXOSWAP will explore the unique characteristics of Bitcoin Finance based on the UTXO model, and is committed to becoming the liquidity infrastructure of the Bitcoin ecosystem and promote the prosperity of the Bitcoin ecosystem.
Technical implementation
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On UTXOSWAP, when users conduct SWAP transactions, the following three steps are mainly included:
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Intent expression: Users to express their transaction intentions by signing a message containing a transaction asset type, amount, and other parameters.
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Poetry and matching: The polymer collects the trading intentions of all users, search for liquidity resources on the chain and under the chain, and match the intention.
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Transaction submission: The polymer is assembled and submitted to the chain.
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Direct matching user intention
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AMM Cells (various AMM liquidity pools built on the CKB chain)
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The liquidity provided by the third party as a city merchant
The source of liquidity that the polymer can use includes::
Intent Cell
Intent Cell is used to record the user’s transaction intent and ensure that it meets specific conditions when consumption.For AMM operations, intention can be divided into three types: SWAP, Addliquidity, and RemoveLiquidity.
When users use UTXOSWAP, they first need to initiate a CKB transaction and record their transaction intentions in the Intent Cell.For example, when the user sets a sliding point and selects a specific fund pool for transactions, these parameters will be written into the Intent Cell.When the Intent Cell is unlocked, the script will verify whether the asset returned to the user in the output to meet the slide requirements and check whether it contains the specified capital pool Cell.
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Intent Cell supports a variety of transaction forms. In addition to standard SWAP transactions, it will also support Limit Order and TWAP (time weighted average price) transactions.This enables the UTXOSWAP platform to meet the needs of users’ complex transactions and enhance the flexibility of strategy.Users can set the parameters in Intent Cell in detail to accurately control the conditions and timers of the transaction execution, and optimize the transaction efficiency and results.
Bitcoin also has a unique feature to support PSBT (some signature Bitcoin transactions), which allows multiple parties to participate in the construction of the same transaction through some signatures.In CKB, the corresponding PSBT extension function is Open Transaction.After UTXOSWAP integrates Open Transaction, users can directly build trading intentions through the signature method under the link, and others can meet these intentions by supplementing input and output, and can provide a better transaction experience.
AMM Cell
AMM Cell is responsible for all verification logic related to AMM, including verification of intentional transactions, management of assets in liquidity pools, and the generation and destruction of liquidity vouchers.
During the transaction execution process, AMM Cell will verify each transaction intent to ensure that user needs are met.At the same time, it also checks whether the status change of the liquidity pool is strictly based on the default AMM curve to ensure the security of the entire fund pool.
Product advantage
Intent-based hybrid trading model
In the traditional AMM trading model, each transaction only has two trading roles of the user and the liquidity pool, and users can only accept the current liquidity pool.From a user perspective, although this model improves the convenience of transactions, it has lost the possibility of getting better transaction prices. Users can only make choices between the two;Ponds passive markets will bring impermanence and loss of pricing, and active transactions will have uncertainty brought by slippery point, MEV, etc.
To solve the above problems, the Intent-Based trading model appeared.In this model, users no longer passively accept the price, but actively give their own transaction intentions, such as “replaced at least 20 B token with 10 A token”.The liquidity supply side has also changed. The AMM liquidity pool is only a choice of liquidity supply. If it is profitable, the market merchant can be sold directly according to user intent;The price is in line with the interval of user intentions, and the transaction can be completed smoothly. At this time, the transaction process becomes a limited price single mode.
UTXOSWAP uses the characteristics of verification on the chain in the UTXO programming model to achieve chain matching and chain transactions, and achieve the above -mentioned hybrid trading model.In the future, we will also expand the ability of users to express their intentions, such as achieving logic similar to the Dutch shooting: the price decreases over time in a certain range.Inspection.
Support custom curve and handling rate
In the UTXOSWAP AMM model, transactions can customize the founder’s pricing curve according to the characteristics of assets, such as transactions for stable coins types that can use curve of CURVE type.In addition, the trading pool also has some optional fees, which can make different LPs freely choose and maximize the income.
Ultra -low GAS Fee, can be paid with any token
The GAS Fee cost of UTXOSWAP’s single transaction is about 1/100,000 CKB. Based on the current CKB price, less than 0.000002 (one -million -dollar) US dollars can be ignored.In addition, thanks to the characteristics of the calculation of the UTXO chain, the user’s transaction intention can be verified under the chain. If the transaction cannot be traded, the user will not need to pay the handling fee.
On the other hand, thanks to the UTXOSWAP design, whether it is GAS Fee or status space occupation, the required CKB does not require user perception. Users can use any token to pay without sensing these costs. UTXOSWAP will automatically pay the user -paid Token user.Conversion and help users pay GAS Fee or create a new Cell.
Compatible with multi -chain wallets, L1/L2 no sensing operation
Users of UTXOSWAP do not need to download special CKB wallets, but can directly use the familiar BTC wallet to complete the LEAP, L2 transactions, and transfer operations of L1/L2.In terms of experience, the user’s BTC address will correspond to a fixed CKB address, and the control of the CKB address belongs to this BTC address.This corresponding relationship is the chain level, so in other CKB applications that are compatible with multi -chain wallets, the CKB address corresponding to the same BTC address can also be unified.
In addition to BTC, it can also support the direct use of multiple mainstream public chain wallets such as ETH / Solana / TRON. If there will be corresponding asset collaboration scenarios in the future, such as CKB’s cross -chain to Solana, we will also perform the corresponding wallets synchronously.support.
