Decentralized Finance (DeFi) and Bitcoin (BTC) are two terms that have never been used together. However, this might change as developers are trying to create an ecosystem for DeFi on Bitcoin’s network. This article will explore how Trustless Market managed to publish Uniswap’s smart contracts on the Bitcoin network and the potential for Bitcoin DeFi.
Uniswap smart contract on Bitcoin
Trustless Market succeeded in publishing Uniswap’s smart contract on the Bitcoin network. This protocol enables liquidity providers to earn 2 percent on every swap, has attracted more than 2,000 users, and delivers daily volumes of $500,000. The arrival of Ordinals in January paved the way for non-fungible tokens (NFTs) to be placed on the Bitcoin blockchain. Text-based inscriptions can be used to create and trade BRC-20 tokens, which are becoming increasingly popular, as their market capitalization has increased significantly in recent times.
One of Trustless Market’s developers, Punk3700, talked about the new service, saying, “We want to make Bitcoin as usable as possible. That means more than just as a digital currency. It’s still super early. It feels a bit like Uniswap in 2018, but it’s a lot of fun.”
Bitcoin DeFi
More than 14,000 tokens have already been launched on the Bitcoin network, and the total market capitalization is more than $500 million. The total value of all BRC-20 tokens even surpassed $1 billion earlier this week. However, most of these tokens are meme coins rather than tokens with an actual function.
- Advertisement -
Despite the large number of tokens on the Bitcoin network, the use of BTC in DeFi applications has been limited to tokenized representations of Bitcoin on other networks, such as Ethereum. For instance, Wrapped Bitcoin (WBTC) is an ERC-20 token that provides access to the DeFi world of Ethereum.
However, Trustless Market’s arrival is a nice start for the development of DeFi on Bitcoin, and it could pave the way for future BTC-DeFi projects.
In conclusion, while DeFi and BTC have never been used together, developers are trying to change that. Trustless Market’s publication of Uniswap’s smart contract on Bitcoin’s network is a promising start for DeFi on Bitcoin, and it might pave the way for more BTC-DeFi projects in the future.