Stackswap Will Build First-Ever Complete DEX on the Bitcoin Network

Stackswap will be the world’s first complete DEX and Launchpad on the Bitcoin Network. In one of its steps to do so, Stackswap announced its official completion of a private round. Specifically, the brand raised $1.3 million in the first round.

In detail, Stacks Foundation led the investment round. In addition, the round also saw participation from many other prominent investors. These include Genesis Block Ventures (GBV), HashKey, and SOSV. These early investors share a long-term vision of seeing Stackswap become the biggest DEX on Bitcoin.

More so, the platform is powered by Stacks’ PoX mechanism. It directly triggers the Bitcoin transactions on every block. To highlight, Stackswap will begin running on the Bitcoin Network this month. To add on, the Stacks mainnet will act as a layer-2 chain on top of the Bitcoin Network. In fact, it will bring smart contract functionalities onto the network. Stackswap stated,

We are very happy that Stackswap will be able to engage with a wider scope of audience and institutions on our new trading platform through this investment.  We have a very competent global team of professional developers who have researched and have had extensive experience with the DeFi and related systems for a long time.”

Meanwhile, Stacks is built to make use of Bitcoin’s secure and decentralized nature. It records all the transaction details within the Bitcoin network through its PoX consensus mechanism. Thus, by using these Stacks protocol benefits, Stackswap presents itself as the first permissionless DEX to run on the Bitcoin layer.

Impact on Decentralized Finance (DeFi)

This is incredible news for users on the Bitcoin Network. So far, the Defi market has boomed within other major blockchains like Ethereum. When it comes to the DeFi sector, Bitcoin still has a lot to explore. As of now, it is used indirectly as collateral in the form of wrapped tokens.

Now, with Stackswap in the picture, Bitcoin liquidity with respect to DeFi market signals will have a much wider role. Presently, Bitcoin’s market cap has hit $1.2 trillion. Accordingly, Stackswap is gaining massive attention from many DeFi institutions and users around the globe. This is expected as the platform will bring the largest Bitcoin liquidity seen in the DeFi market.

Stackswap Introduces the Next-Generation DEX Protocol

To be specific, Stackswap is the first-ever DEX to run on the Stacks protocol. It aims to concurrently expand the Stackswap and Bitcoin ecosystems. Furthermore, as an inaugural member of the Stacks Accelerator, Stackswap acts as a hub for Stacks to expand the Stacks ecosystem.

Adding on, Stackswap supports traditional functions of a DEX like liquidity mining and trading tokens via swaps. However, it also brings in new, advanced functions like creating trading pools via liquidity provision, token compensation programs via PoXL mining, and project token issuance via Launchpad.

So, with these functions in place, users can begin to generate profits in Bitcoin by staking and depositing Stacks (STX). This is accomplished through an all-new, first-of-its-kind, Bitcoin-based reward payment system.

Meanwhile, the Stacks protocol has raised $93 million in investments. This came from prominent institutional investors including Winklevoss Capital and Coinbase Ventures. In detail, Stacks Protocol brings smart contract functionality to Bitcoin. In fact, it holds the title as the first token sale to get a green light from the United States’ SEC.

Let’s take a moment to focus on the Stackswap platform’s Launchpad feature. It is a prime example of the relationship between the growth of the Stacks ecosystem and Stackswap. In detail, development teams with their Dapp projects will use the Launchpad for issuing tokens, liquidating pools, and executing PoXL mining.

By creating an easy-to-follow setup, and automating a large part of the coding and manual labor needed to launch projects, Stackswap delivers a low barrier for entry to any team looking to implement their projects.

Understand PoX Consensus Mechanism

Now, let’s take a closer look at the platform’s consensus mechanism. Stacks offers the advantage of enhanced security and increased transaction stability on the Bitcoin Network with the use of its Proof-of-Transfer PoX consensus mechanism.

PoX, as a consensus algorithm, involves two separate blockchains. The first is an already established blockchain (Bitcoin), the second is the secured new blockchain (Stacks). Thereby, PoX connects to Bitcoin with a 1:1 block ratio. This means that all transactions on the Stacks blockchain are verified on the Bitcoin blockchain. However, instead of burning energy with Proof-of-Work (PoW), PoX reuses existing bitcoins as ‘Proof-of-Computation’.

To add on, all projects that begin via the Stackswap Launchpad will be automatically evaluated by partner VCs like Stacks Accelerator. After this, promising projects will be considered for gaining investments as well as Accelerator support. More likely, this will create massive synergy for Stacks Accelerator. In turn, notable Bitcoin Maximalists having the same Bitcoin DeFi vision will come to see this happen.

Finally, one of the biggest key features of the Stacks protocol is PoXL mining. In particular, it is also available through Stackswap. To highlight, a partnership is already underway with MiamiCoin. With PoXL mining, it is no doubt a key tool for growth in the Stacks ecosystem as well as for the coming generations of DeFi assets.

Lastly, Stackswap aims to offer a wide range of financial services in the future. These will include AMM-based swapping as well as liquidity mining. To add on, it will also explore more complex functions for the Token Launchpad and PoXL mining. All in all, Stackswap wishes to extend serious support for entrepreneurs who are still in their initial stages in order to truly bring lasting value to the ecosystem.