Introduction

Atomiq DeFi will power the first DEX for Native Bitcoin Cross-Chain Swaps (i.e., Atomic Swaps). These Atomic Swaps are unique in the Bitcoin DeFi space because they enable you to tap directly into native Bitcoin liquidity without the risk of having to use wrapped tokens like sBTC or WBTC.

Why Bitcoin DeFi & Atomic Swaps?

Firstly, Bitcoin DeFi is still in its infancy and has huge growth potential. According to a report from Pantera Capital (w/ 4.2 bn under management), unlocking Bitcoin to DeFi represents a $500 bn market Opportunity. Additionally, we have found a market gap because although many protocols are working to build Bitcoin DeFi, there are really only two options when trying to use Bitcoin in DeFi:

• With Ordinals/BRC20 directly on Bitcoin layer 1

• Or through wrapped tokens

  • On Layer 2s like Stacks (sBTC), Rootstock (RBTC), and Liquid (L-BTC)

  • Or on other chains like Ethereum (WBTC)

However, both methods are associated with problems. BRC-20 has several issues, including network pollution, high costs, slow speed, limits on scalability, and limited functionality. Wrapped tokens offer more functionality but come with concerns about reliance on trusted third parties, centralization, susceptibility to token bridge attacks, and increased risk of hacks.

However, with AtomiqDeFi, there will now be a third option for using your Bitcoin in DeFi: direct BTC Cross-Chain Swaps, also known as Atomic Swaps. These solve the issues associated with both building on layer 1 and wrapping tokens. With Atomic Swaps, you can use your real Bitcoin directly in dApps.

Atomiq DeFi is comprised of a DEX and a full DeFi product suite of dApps, including the Atomiq Pad, Atomiq Wallet, and Atomiq Bridge. This DeFi product suite is all built on top of the Mintlayer protocol, a Bitcoin layer 2 sidechain that has built the underlying technologies to make Atomic Swaps possible. The protocol is a secure and scalable sidechain to Bitcoin designed specifically for Atomic Swaps and Real-World Asset (RWA) tokenization.

Learn more about Atomic Swaps as a Solution here: https://atomiqdefi.com/the-case-for-atomic-swaps/