Bitflow: The Real-Yield DEX for Bitcoiners

BitFlow Finance
4 min readMay 12, 2023

Inscriptions are making waves in the mempool, and now a tsunami of DeFi activity is moving home toward Bitcoin where it belongs. Ordinals have proven that there is untapped design space on L1, and with the development of DLCs, Taproot, Lightning, and Stacks, new functionality is being unlocked.

But there’s a challenge — You still don’t have a safe way to earn BTC yield on your BTC holdings. And that’s where Bitflow comes in!

Bitflow is a decentralized exchange (DEX) that empowers users to trade and earn with Bitcoin without relying on central points of failure, replacing malicious middlemen with PSBTs, Atomic Swaps, Layer-2 smart contracts, sBTC, and decentralized liquidity pools — unlocking the full potential of Bitcoin.

The recent surge in Bitcoin activity demands infrastructure for a robust DeFi ecosystem, and Stableswaps are just the first step in Bitflow’s vision to build an economy of real yield products on the most secure, decentralized, and permissionless chain in the world.

Our protocol generates real yield based on actual trading activity. Claim your yield through our decentralized protocol , offering a secure and transparent way for Bitcoiners to earn on their native BTC.

Bitflow’s DEX provides unique advantages to Bitcoiners in DeFi, allowing them to trade and earn with BTC while leveraging the security and network effects of the Bitcoin blockchain.

  • Bitcoin Swaps: Trade BTC without custodial risk. Say hello to a more secure, transparent, and decentralized way of trading.
  • Trade Stablecoins: Efficiently trade stable assets with deep liquidity pools optimized for low slippage and fees.
  • Add/Remove Single Sided Liquidity: This enables users to add or remove liquidity without needing to provide an equal amount of two different assets.
  • Earn Real Yield Based on Real Trading Activity: LPs (liquidity providers) deposit USDA and sUSDT tokens → earn USDA and sUSDT. Deposit BTC → earn BTC.
  • Open Source: All Bitflow code is open source, including smart contracts and the front end.

WEN? Here’s a sneak peak at the Bitflow Roadmap:

Bitflow released the first stableswap protocol on testnet, in early December 2022, and is currently preparing for a mainnet launch in Q2 of 2023. The team is also setting up as a supplier within the Magic Protocol to make it easy for users to swap between native BTC and wrapped/pegged versions of BTC on Stacks. When sBTC goes live later this year, users will be able to earn a native Bitcoin yield through Bitflow’s decentralized liquidity pools.

One of the benefits of using Bitflow is that it enables Bitcoin to become a productive asset without entrusting it to centralized entities. The sBTC peg mechanism currently being deployed by Stacks protocol is a significant step forward in building ideal Bitcoin layers that enable fully-expressive smart contracts with a global ledger and high security of transactions backed by 100% of the base layer (Bitcoin) security.

With Bitflow, every liquidity provider will be able to earn native Bitcoin yield. Stableswap pools are one of the best ways to earn a passive income on price similar assets while minimizing the risk of impermanent loss. But there aren’t any pools like Bitflow that can generate real Bitcoin yield for liquidity providers, where yield comes from real trading activity.

Bitflow will offer several types of pools, starting with stableswap pools, expanding into other stable assets and crypto offerings. Stableswap pools include sUSDT/USDA/xUSD/UWU.

With the upcoming release of sBTC, new pool pairs such as xBTC/sBTC, and tripools pool including sBTC/STX/USDA will be possible. These pools enable users to trade and earn a yield on their holdings in a trustless manner, and all of the rewards can be claimed in BTC.

Deposit BTC, earn BTC. Earn real yield while leveraging the security, capital, and network of Bitcoin.

Bitflow offers a unique and innovative solution to the problem that Bitcoiners face when trying to earn a yield with their native BTC. Bitflow replaces malicious middlemen with smart contracts and decentralized liquidity pools, enabling Bitcoiners to trade and earn real yield while leveraging the security, capital, and network of Layer 1 Bitcoin.

The protocol is building on the frontier of permissionless innovation on Bitcoin, and you can learn more about Bitflow and sign up for early access on our website at https://bitflow.finance.

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BitFlow Finance

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