Decentralised finance is of utmost importance in the blockchain world. It has contributed to the development of this sector more than $70 billion (~£51 billion) locked in DeFi protocols. Now, the DeFi sector is dominated by Ethereum, with many dApps created on its basis.
Creating a decentralised Bitcoin exchange is a problem that has been addressed by many platforms. Now, the StackSwap company has come closer than anyone else to solving it.
With a total of $1.3 million (~£952 million) in funding, StackSwap is going to expand the scalability of its smart contracts and introduce a fully functional decentralised exchange (DEX), as well as the DeFi ecosystem built on the Bitcoin network this November.
According to ambcrypto.com, StackSwap is built on the Stacks protocol, a layer-1 solution that enables the use of smart contracts on Bitcoin. It is powered by the PoX consensus algorithm combining two separate blockchains. It also uses the Bitcoin blockchain to secure the Stacks blockchain, which allows verifying transactions on the Stacks blockchain on the Bitcoin network.
In addition, PoX is less energy-consuming than the proof-of-work Bitcoin algorithm: it uses minted bitcoins for its mining process. This allows StackSwap to create an efficient DEX capable of processing transactions and offering trading, liquidity mining, and stacking on the Bitcoin network.
One of the main disadvantages of centralised exchanges is the problem of liquidity. It is a great pain for traders who can only watch a digital asset lose its value due to their inability to exit their position.
StackSwap is going to provide automated services, so buyers will be automatically matched with sellers. This will help traders to make deals while there is enough liquidity in the pool.
Users will be able to earn money by staking and depositing Stacks (STX) accounts through the Bitcoin-based reward system.
Projects and development teams will also be able to use the launchpad platform to issue tokens, create automated pools, and mine. Stackswap’s Token Launchpad will allow non-coders to implement a PoXL mining interface and place it on the Swap market in just one click, facilitating the entry of projects into the Stacks ecosystem.
At first glance, the project looks very attractive: it will allow placing digital assets on the network even to those with little understanding of blockchain development.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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