Ordiswap
  • The Ordiswap Protocol
  • Protocol Concepts
    • osAMM Overview
      • Modular Implementation
    • Off-Chain Balance States
    • osAPI
  • How to use Ordiswap
    • Swapping BRC-20 Tokens
    • Swapping Rune Tokens
    • Liquidity Provision
    • Fee Structure
    • Asset Custody
    • Ordiswap Cross-Chain Swaps
    • Native L1 Pools
    • Protocol Liquidity Vault
  • ordiswap off-chain engine
    • Protocol Structure
      • Module Functions & Pool Specific Logic
      • Database Initialization and Mempool Integration
      • Token Indexing & Retrieval
      • Cross-Chain Swap API Handling
      • Cross-Chain Swap Logic
      • Liquidity Pool Management
      • Bitcoin Transaction Creation Functions
    • Roadmap of Research
    • Combatting Centralization
    • Audit Review
  • Ordiswap Token
    • ORDS Token
      • veORDS
      • Gauges
      • Bribe System
  • Roadmap
    • Roadmap
  • Community
    • Links
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  1. Protocol Concepts

Off-Chain Balance States

Our implementation of off-chain balance states in Ordiswap introduces novel functionality for BRC-20 and Ordinal swapping native to Bitcoin. Thus eliminating dependencies on Layer-2 solutions (L2s) and Centralized Exchanges (CEX), whilst preserving user custody throughout the swap and utilization processes.

Ordiswap emerges as a pioneering protocol designed to harness the full potential of Bitcoin's native layer for decentralized trading, fostering a robust ecosystem for BRC-20 tokens and ordinal swaps. This research investigates the underlying architecture and mechanisms that empower Ordiswap to achieve unparalleled liquidity without resorting to Layer-2 solutions or centralized intermediaries.

The Significance of Off-Chain Balance States: Off-chain balance states form the crux of Ordiswap's innovative approach. Unlike conventional DEXs that heavily rely on on-chain settlement, Ordiswap strategically employs off-chain balance states to execute swaps efficiently, minimizing transaction costs and latency. This approach enhances the scalability of the protocol, allowing it to process a significantly higher number of transactions without compromising security or user experience.

Unlocking Billions in Liquidity: By leveraging off-chain balance states, Ordiswap effectively unlocks billions of dollars in liquidity on Bitcoin's layer-1. The off-chain model facilitates swift and cost-effective swaps, attracting liquidity providers and traders alike. This liquidity injection not only enriches the trading ecosystem but also positions Ordiswap as a transformative force and a first mover in the BRC-20 decentralized finance (DeFi) landscape.

Eradicating Reliance on L2's and CEX's: Ordiswap's reliance on off-chain balance states mitigates the need for Layer-2 scaling solutions and centralized exchanges. Traditional DEXs face scalability challenges, necessitating the use of Layer-2 protocols that often introduce complexities and custodial risks. Ordiswap eliminates these dependencies, providing a seamless and trustless trading experience directly on Bitcoin's layer-1.

Maintaining User Custody: Ensuring user custody of assets throughout the entire swap and usage process is a paramount concern for Ordiswap. The off-chain balance states approach enables secure and private transactions without compromising ownership control. Users retain custody of their assets until the exact moment of settlement, reinforcing the protocol's commitment to decentralization and user empowerment.

Last updated 10 months ago