Bitflow is the Curve of Bitcoin — why stable swaps are an essential DeFi building block

BitFlow Finance
3 min readMar 7, 2024

Bitflow has built the Curve of Bitcoin. Its main goal is to let users and other decentralized protocols exchange different flavor of Bitcoin and SIP-10 tokens (USDT, wBTC, xBTC, sBTC, stSTX, USDA to USDC for example) through it with low fees and low slippage.

Curve is a decentralized exchange built on Ethereum that focuses on stable swaps.

Bitflow’s focus on stable swaps is strategic. Stable swaps are in high demand, and they’re an essential building block of a DeFi ecosystem.

Stable swaps are critical infrastructure

Stable swaps focus on exchanges between like-assets, like stablecoins (USDT and USD for example), or anything with similar value (BTC for wBTC for example).

Stable swaps focus liquidity around similar assets to enable users to trade between crypto and stablecoins with reliably small slippage and low trading fees.

Stable swaps aren’t just great for users. They’re also an essential building block for other DeFi ecosystem players.

Stable swaps attract deep liquidity around their trading pairs. So other ecosystem players (like borrowing/lending or liquid stacking-focused DeFi protocols) can tap into stable swap DEX liquidity to enhance their offerings.

For example, Bitflow’s partnership with Stacking DAO focuses on the opportunity to provide liquidity for the stSTX-STX trading pair.

Understanding Ethereum’s Curve Finance

Curve is one of the most important DeFi exchange protocols in Ethereum.

Its AMM model, StableSwap, offers minimal slippage without giving up fees to investors by focusing on similarly priced assets like stablecoins. Importantly, it’s an interconnected hub of DeFi, notably for lending players like Aave. Aave offers lending solutions with over $10B total value locked on the protocol.

For example, when users borrow stablecoins on Aave, Aave can tap into Curve’s deep liquidity pools to execute the trade with minimal slippage.

This integration is crucial for maintaining efficient operations within these lending platforms, especially during periods of high volatility when liquidity is most needed.

This dynamic plays out throughout the Ethereum ecosystem. And Curve has become the go-to place to trade stablecoins and similar assets.

Given the popularity and volume of stablecoins, Curve sees significant volume and activity in Ethereum DeFi.

Bring Stable Swaps to Bitcoin

Bitflow is strategically following this non-custodial, liquidity pool infrastructure playbook and building its own stable swap solution on Bitcoin. “BitFlow’s mission is to enable the deepest liquidity pools with the lowest fees for price-stable assets.”

They’re focusing on Bitcoin stablecoins and similar assets, like USDA, stSTX/STX, and BTC.

With their integration with Stacks and its upcoming Nakamoto release, Bitflow will offer the attractive potential of Bitcoin native yield — with the emergence of Bitcoin-pegged assets like sBTC, aBTC, wBTC, xBTC, and more, users can earn BTC native yield by supporting ecosystem liquidity.

The Stable Swap Playbook

Bitflow understands the importance of stable swaps in a DeFi ecosystem. Stablecoins are a killer application in crypto, meaning stablecoins see significant trading volume.

The success of platforms like Curve highlights the significance of providing deep liquidity for price-stable assets. And as the variety of stablecoins and different flavors of BTC continues to expand, the opportunity for a decentralized stable swap protocol on Bitcoin is clear.

Bitflow is just getting started. Follow along as we pave the way for Bitcoin DeFi.



BitFlow Finance

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