Bitflow Emerges As The New Liquidity Hub On Stacks: Route Aggregator, Multi-Hop Swaps, and Deep Liquidity Pools

BitFlow Finance
6 min readJun 19, 2024

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TL:DR

Bitflow is a decentralized exchange for Bitcoiners, offering low-slippage stable swaps, extensive route aggregation, and deep liquidity pools for an optimal trading and earning experience — emerging as the new liquidity hub on Stacks. Recent expansions include Uniswap-style AMM pools (STX<>USDC), Multi-Hops, and a Swap Aggregator. Bitflow now guarantees the best swap rate across all DEXs on Stacks, enhancing user experience and attracting TVL, builders, and DeFi apps to Stacks and Bitcoin layers!

  • ✅ Aggregator: Best rate across all DEXs in one place, with one click
  • ✅ Deep Liquidity & Low Slippage: Curve-style stable swaps
  • ✅ Expansion: Uniswap-style liquidity pools (New: STX<>USDC)
  • ✅ BFFs: Multiple trading routes from Alex, Arkadiko, Velar delivering the best rate + user experience

🌊 Start trading now on app.bitflow.finance and explore the best swaps and deepest liquidity pools.

Imagine a seamless Bitcoin trading experience with unbeatable rates and minimal slippage. Bitflow is making this a reality. Ever since the introduction of Ordinals, Bitcoin has become an attractive blockchain for developers to experiment with new token standards.

To stay at the forefront of these exciting developments, Bitflow has undergone a transformation to solidify its position as the go-to Bitcoin decentralized exchange (DEX) platform. By positioning itself at the center of this wave, Bitflow aims to drive significant advancements and connect the fragmented liquidity within the Bitcoin ecosystem.

Evolution of Bitflow

Bitflow started as a Stable Swap platform, which is an essential DeFi building block and has evolved into a premier Bitcoin DEX for Stacks and the wider Bitcoin DeFi ecosystem. The platform eliminates the need for centralized admins or third-parties, allowing users to earn real yield and trade BTC, SIP10 tokens, Runes and stablecoins with reliably small slippage and low trading fees.

Our mission is to unlock Bitcoin’s full potential by leveraging various technologies to become the most beloved and sustainable DEX for Bitcoiners. With our multi-hop swaps, route aggregator, and deep liquidity pools, we make it easy to find the best swaps with the most returns.

Simply put, Bitflow is designed to simplify the trading process, ensuring users get the most value from their trades, becoming the liquidity hub and go-to platform for all things BTC, Runes, SIP10 tokens. Read on to learn what the future holds for Bitflow.

XYK Pools optimized for Deep Liquidity

By leveraging our deepest liquidity pool, such as stSTX<>STX and most recently our new STX<>USDC, we are making seamless trading a reality by creating new and efficient routes in one-click to other SIP10 tokens. This helps protocol tokens flow more efficiently and become more active.

Efficient and Secure Base Pools

To offer users the best swap rates, Bitflow utilizes base pools composed of the most popular trading pairs, starting with STX<>aeUSDC. Following the popular UniswapV2 mechanism (x ∗ y = k), our new pools will provide deep liquidity, which is essential for maintaining low slippage and achieving favorable rates. By focusing liquidity around popular pairs such as STX, USD stablecoins, BTC and other frequently traded tokens, Bitflow’s design ensures that trades can be executed efficiently and cost-effectively.

All of the XYK pool contracts have been audited by a new group of the most trusted/skilled Clarity white hats with a proven track record on ImmuneFi. These contracts are deployed by multisig wallets, and admins have NO ability to move user funds in/out of pools or manipulate the LP tokens. To build DeFi around the best form of money, BTC, it’s imperative that users are exclusively in control of their own funds.

Expanded Trading Routes

Recently, we expanded our multi-hops and trading routes with Arkadiko, Velar, and Alex Pools, allowing users to swap $STX, $stSTX, and $USDA to $aeUSDC, $xBTC, $DIKO, $ALEX, $WELSH, $ODIN, $LEO, $NOT, $PEPE, $VELAR, $ROO, $NOT and much more. This enhances SIP10 token liquidity and propels the entire ecosystem forward.

We will continue to expand upon multihop trades, helping our BFFs liquidity flow and become more active participants in the Bitcoin DeFi ecosystem.

Bitflow’s Swap Aggregator combines the benefits of low slippage swaps, dynamic route aggregation, and leverages our deep liquidity pools to provide users with an optimal trading experience. By pooling liquidity from multiple sources and utilizing efficient trading routes, Bitflow aims to become the go-to platform for all things BTC, Runes, and SIP10 tokens.

Introducing Bitflow’s Swap Aggregator

Creating multiple trading pairs and fragmented liquidity pools is inefficient, and that’s where our DEX route aggregation comes in, combining trading routes from multiple liquidity pools, across multiple Dexes, to find the best rates for token swaps. It analyzes different paths and executes the most cost-effective multi-hop swaps, leveraging both our stable swaps and liquidity infrastructure.

With our new UI, users can visualize various trading routes and multi-hop swaps across different DEXs, providing optimal swap execution. This guarantees users get the best possible value for their trades by leveraging the combined liquidity from multiple sources.

What are Multi-Hop Swaps?

Multi-hop swaps connect fragmented trading pairs in a single transaction, simplifying what would otherwise be a complex, multistep process for the user.

How does Bitflow’s Swap Aggregator work?

Bitflow plays a crucial role in the growth of the Bitcoin DeFi ecosystem. Our goal is to enhance the user experience by reducing the need for users to jump between multiple apps, protocols, and manually manage trades. With the Bitflow route aggregator, users can spend less time navigating complex trading processes and more time focusing on actual trading.

For example, a user might want to trade stSTX for WELSH. Since a direct trading pair (stSTX<>WELSH) doesn’t exist, the user would typically need to first swap stSTX for STX on Bitflow, then head over to Velar or Alex, compare rates, and swap STX for WELSH. Bitflow eliminates these intermediary steps by offering a single transaction that optimizes for the best rate, streamlining the process and saving the user time and effort.

Here’s the Swap DEX Aggregator in Action, showing the best rate for stSTX<>aeUSDC across Velar and Bitflow Liquidity pools.

By aggregating multiple trading routes and DEXs, integrating with protocols like Arkadiko, Velar, Alex, and others, Bitflow ensures that trades are executed in the most cost-effective manner, providing users with the best possible value, making it the go-to liquidity hub for Bitcoin-based assets.

Nakamoto Upgrade

The Nakamoto upgrade, a hard fork on the Stacks protocol, is designed to improve transaction throughput and achieve Bitcoin finality for Layer 2 transactions. This upgrade will reduce block times from 10–30 minutes to about five seconds, making transactions faster, more secure, and programmable. This will support the growing DeFi applications and bring more users to the Stacks L2 network by leveraging Bitflow’s liquidity infrastructure.

Check out Bitflow.finance and discover the best swaps and deepest liquidity pools.

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BitFlow Finance

A decentralized stable swap protocol that generates rewards for liquidity providers & native Bitcoin holders