What is brc20-swap? brc20-swap is a product introduced by Unisat that allows users to quickly swap BRC 20 tokens. So what’s special about brc20-swap? Let’s find out with Weakhand in this article.
Before jumping into the article, everyone can refer to some of the following articles to understand better.
- What is BRC 20? All you need to know about BRC 20
- What is Bitcoin? Everything about Bitcoin
- What is Bitcoin Ordinals? Everything about Bitcoin Ordinals
Overview of Brc20-swap
What is Brc20-swap?
brc20-swap is a product introduced by Unisat that allows users to quickly swap BRC 20 tokens without the need for an intermediary. brc20-swap operates similarly to the AMM Dex on the market at the moment, in which there will be 2 main participants including:
- Traders: Swap BRC 20 tokens easily and quickly.
- Liquidity Provider (LP): Provide liquidity for BRC 20 token pairs and earn trading fees.
brc20-swap will use Sats tokens as transaction fees with 0.3%/ 1 transaction of which about ⅙ (0.05%) of this fee will be collected by UniSat and the remaining ⅚ (0.25%) will be allocated to Liquidity Providers (LPs). . At the present time, Unisat has only licensed a small group of participants to experience brc20-swap and is expected to announce it to the community in the near future.
Development history of brc20-swap
In July 2023, Unisat introduced that it was about to launch a new product brc20-swap to improve the liquidity of BRC 20 tokens. On September 20, 2023, Unisat issued an invitation for access Early access to brc20-swap to 620 wallet addresses with selection criteria:
- Active community members who traded at least 1 BTC on UniSat Marketplace between July 16, 2023 and September 20, 2023.
- Active community members have accumulated at least 500 UniSat Points on UniSat between July 16, 2023 and September 20, 2023.
- Unisat OG PASS holders (snapshot block height is 808559)
On October 10, 2023, Unisat officially announced the brc20-swap mainnet schedule and distributed a free Bitcoin NFT called brc20-swap Prime Access to the community to commemorate the event. Holders of this Bitcoin NFT can get early access to the products in brc20-swap.
Unisat announces 14 initial brc 20 tokens supported by brc20-swap
On October 30, 2023, Unisat officially announced the initial 14 BRC 20 tokens supported by brc20-swap. Screening criteria were BRC 20 tokens that had at least 15 days of trading activity on the UniSat Marketplace in the past 30 days and the average trading volume in the past 30 days was not 0. After the announcement was made, the The related BRC 20 token also increased significantly thanks to positive expectations on this news.
How Does Brc20-swap Work?
Overview of brc20-swap
brc20-swap prioritizes modular implementation and gradual expansion. This will help:
- Isolated execution ensures that if there is a problem executing any single module, it will not affect the operation of the core protocol and other modules.
- Consensus upgrade, when most indexers realize and implement indexing for a specific module, it may move from the current Black Module to the White Module and will become a non-factor. missing of brc-20 protocol.
With the current expansion mode of Black Module, there is a disadvantage that users cannot freely withdraw assets. Only when users deposit assets larger than the amount of assets to withdraw can they withdraw. This will cause problems. Users lose a certain amount of liquidity and convenience of the asset.
Black Module mode
Once Black Module mode has been understood and implemented by users, gradually becomes reliable and gradually accepted by more indexers, brc20-swap will transition from Black Module to White Module and achieve the upgrade Consensus. Users can freely deposit and withdraw assets.
White Module mode
Additionally, because BRC 20 and even the entire Ordinals ecosystem are still in their early stages, Unisat still has great influence and reputation right now. They provide complete indexing services such as trading and balance queries for the protocol, all on one Unisat platform. Its modular architecture allows more service providers to participate, thereby achieving more decentralization.
Expectations About The Future Of brc20-swap
The Ordinals ecosystem at the moment is still experiencing a problem of low liquidity and accessibility, leading to users across the entire market still not being motivated to participate. brc20-swap is the first facility to increase liquidity for the entire Ordinals ecosystem.
At the same time, Uniswat also announced that it will donate 2% of revenue from transaction fees on its brc20-swap to L1F Foundation to promote further optimization of the BRC 20 standard and development process. In addition, Unisat will also Public Code its complete explanation and verification of brc20-swap to promote early support for indexer.
All of the above shows the dedication of Unisat rather than a monopoly to benefit from the entire Ordinals ecosystem. With the efforts of related parties, I firmly believe that Bitcoin’s DeFi ecosystem with pieces such as DEX, Lending, Derrivative, Options, … will appear and explode, possibly coinciding with the upcoming Bitcoin having.
summary
brc20-swap is bringing many new things to Bitcoin like what we have seen for Ethereum. Above is all the information I want to introduce about brc20-swap, hope everyone has received useful knowledge.
