Hi all, we’re the team behind Bitmatrix, an AMM on Liquid that lets users create their own liquidity pools, add liquidity to other pools, or perform trustless swaps between Liquid Bitcoin, USDt, and other Liquid assets. Ask us anything!
268 sats \ 4 replies \ @secp256k1 27 Sep 2022
If there are no shitcoins on Bitcoin what are we going to exchange? Satoshis for other satoshis?
reply
10 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
Bitcoin > Security Tokens > Fiat > Shitcoins 😎. There are so many assets you can utilize that are not shitcoins.
reply
0 sats \ 1 reply \ @tierotiero 28 Sep 2022
fuji.money can wrap securities, bonds, and other financial instruments on Liquid, with no KYC
reply
0 sats \ 0 replies \ @secp256k1 29 Sep 2022
How does that work? Is it trustless?
reply
0 sats \ 0 replies \ @om 27 Sep 2022
On Liquid there's USDT (Tether) for example.
reply
246 sats \ 2 replies \ @kr 27 Sep 2022
what is the target audience of users you’re building bitmatrix for?
reply
10 sats \ 1 reply \ @bitmatrix OP 27 Sep 2022
Our target audience is bitcoiners, especially those who are interested in utilizing their sats but were previously unable to do so.
reply
1 sat \ 0 replies \ @kr 27 Sep 2022
are you thinking more about retail holders? institutions? somewhere in the middle?
reply
20 sats \ 1 reply \ @k00b 27 Sep 2022
How would you pitch other developers to begin building on liquid?
reply
293 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
Although the Account model is more developer-friendly, the end-user experience for the UTXO model is superior to the Account model in pretty much every way possible. Here’s why:
-
Ether (ETH) is the fuel for executing Ethereum transactions. When you interact with an EVM, you must pay the computation. That computation is calculated in gas, and gas is ONLY paid in ETH. Many Ethereum users complain about having ERC-20 tokens but cannot move them since they don’t have the base currency ETH. Whereas in the UTXO model with services like liquid.taxi, users can transfer assets or interact with smart contracts by covering fees with the same token from the amount they transact, without depending on the base currency.
-
Ethereum users pay for the computation, regardless their transaction succeeds or fails. Even if it fails, the miners must validate and execute the transaction, which takes computational power. Users must pay for that computation, just like they would pay for a successful transaction. This is not only inefficient in terms of IBD time, storage, computation, and bandwidth, but also an awful UX from the end-users perspective. UTXO model is not stateful; failed transactions cannot end up in a block, and users can hand over zero-conf assets. This brings an overall user-friendly user experience.
-
From CoinJoin to MuSig aggregations, to confidential transactions UTXO model provides a higher level of privacy in every way possible. The account model is generally detrimental to privacy since the account is tied to a single owner and anyone can track the address of who has been paid.
reply
110 sats \ 0 replies \ @BeardedSaintRef 27 Sep 2022
What separates you from other liquidity pool businesses?
reply
151 sats \ 7 replies \ @demitasse 27 Sep 2022
why liquid? literally nobody uses it
reply
250 sats \ 4 replies \ @redyellowbluecru 27 Sep 2022
I think bitcoiners are scared of layer2 and most Maxi's haven't even tried liquid (many haven't used lightning) .
When these tools are more prevalent they'll be used.
reply
10 sats \ 0 replies \ @demitasse 27 Sep 2022
tbh, I have never used liquid, but I have used lightning quite a bit
reply
0 sats \ 2 replies \ @03755fbaea 27 Sep 2022
I've been trying liquid AMMs for years but there is simply no liquidity available, unless your size is not size.
reply
433 sats \ 1 reply \ @patrick 27 Sep 2022
What other AMM has actually existed in liquid? This is the first as far as I know.
reply
0 sats \ 0 replies \ @tierotiero 28 Sep 2022
https://dev.tdex.network is off-chain atomic swap protocol, which has AMM as pricing strategy if you want to replicate the no-price feed model
reply
121 sats \ 1 reply \ @bitmatrix OP 27 Sep 2022
When building financial applications, you have two alternatives; EVM or the UTXO model. Within the UTXO options, Bitcoin is intentionally kept simple, and Cardano is a joke, leaving us Liquid, which has advanced scripting primitives, first-class asset support, and confidential transactions. We see that historically everything humanity has accomplished is built on layers, and we believe that the stateless nature of the UTXO model is superior to the stateful design of the EVM model in every way possible. My thesis is that Bitcoin's multi-layered approach is the most solid foundation for building the next generation of financial applications on a large scale.
reply
15 sats \ 0 replies \ @om 27 Sep 2022
How so?
EDIT: I see this answer.
reply
231 sats \ 3 replies \ @om 27 Sep 2022
I see only one pool, LBTC<->USDT with 0% fees.
But the fee rate is immutable, isn't it?
Then there's no incentive to pool.
reply
0 sats \ 2 replies \ @bitmatrix OP 27 Sep 2022
The current L-BTC<>USDt pool has an LP fee tier of 0.25%. When creating a new liquidity pool, the default fee tier is set to 0.25% by default, although it can be adjusted to as high as 1% or as low as 0.01%. Note LP fee tiers are immutable, and thus cannot be modified once a pool is deployed. Multiple liquidity pools could exit with the same pair (such as L-BTC<>USDt ) but with different LP fee tiers. The swap page in the Bitmatrix web interface algorithmically picks the liquidity pool based on the best price.
reply
1 sat \ 1 reply \ @om 27 Sep 2022
OK great but I see this:
- Volume: $128.00
- Fees: $0.00
Shouldn't the fees be $0.32 (= $128 * 0.25%)?
reply
10 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
That appears to be a UI bug. 24h fees must be $0.32 indeed.
reply
249 sats \ 1 reply \ @redyellowbluecru 27 Sep 2022
Is there a maximum amount of liquidity that can be added? Like, could a MM come in and add 5 btc and 100k USDT and basically own the pool?
reply
10 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
There's no upper bound limit on how much you can add. However, the maximum liquidity a pool can accommodate is 1,500 L-BTC. This is due to the 64-bit arithmetic overflow issue, which will be addressed further in our Simplicity version.
reply
110 sats \ 1 reply \ @roach 27 Sep 2022
-
Does each LP need to run their own stream, or is it possible to deposit balances with a custodial pool, much like on ETH?
-
If yes, how can the security be maintained when keys are not controlled by the AMM code?
-
If I submit an order, does the engine match me with the best offer across all available pool streams?
reply
20 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
Unlike traditional order books or atomic swap platforms, Bitmatrix has the concept of Liquidity pools. There’s no central server in the middle that matches orders. Liquidity is aggregated from different sources (LPs) into unified pools where anyone can trade against those pools. Pools are not controlled by any entity; they are algorithmically engineered to set prices according to a mathematical formula enforced by the bitcoin script.
reply
110 sats \ 1 reply \ @TheBTCManual 27 Sep 2022
Would it be possible to use something bitmatrix as a routing service so other platforms and wallets could route trades through you so for example wallets could have seamless swaps without leaving the app and signing inside their wallet UI or P2P exchanges could leverage it for easier access to liquidity
reply
0 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
Yes. That's certainly possible and appropriate. Interacting with Bitmatrix protocol is non-interactive, unlike atomic swaps and Lightning. This makes it easier to interoperate with other platforms.
reply
110 sats \ 2 replies \ @bitcoingraffiti 27 Sep 2022
Favorite Sci-Fi novel?
reply
11 sats \ 1 reply \ @bitmatrix OP 27 Sep 2022
Digital Fortress by Dan Brown 😎
reply
0 sats \ 0 replies \ @bitcoingraffiti 27 Sep 2022
why you like it?
reply
110 sats \ 1 reply \ @kc_hodl 27 Sep 2022
Do you have plans to build on Lightning in the future?
reply
20 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
To build financial application primitives, one needs an "execution environment" such as Liquid but Lightning. Lightning is a network of payment channels that does one thing, and it does it relatively well.
reply
110 sats \ 1 reply \ @redyellowbluecru 27 Sep 2022
Whats the ETA for jade or greenwallet integration?
Really hate chrome
reply
10 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
We will add Jade and Green wallet support as soon as they expose their APIs for third-party applications, however, there is no known timeline for this. You should not expect them to be supported soon.
reply
20 sats \ 1 reply \ @k00b 27 Sep 2022
What's the hardest part of creating swap service?
reply
0 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
Whether an atomic swap-based service or an AMM, all swap services suffer from a lack of liquidity. Fortunately, Bitmatrix makes it easy for LPs to aggregate liquidity to get users better prices.
reply
30 sats \ 1 reply \ @fuji_money 27 Sep 2022
congrats on the launch! Looking forward to create a Fuji USD pool on mainnet!
reply
10 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
Precision 2 plz.
reply
20 sats \ 1 reply \ @k00b 27 Sep 2022
Other than being on another chain how does bitmatrix significantly differ from something like uniswap?
reply
235 sats \ 0 replies \ @bitmatrix OP 27 Sep 2022
Bitmatrix is functionally equivalent to Uniswap V2, however, there are some tradeoffs. The nature of the EVM model inherently allows contract-contract calls. While this brings various benefits such as pool-to-pool swaps, it as a downside allows flash-loan attacks. This is fundamentally not possible when operating in a UTXO environment.
On the other hand, Bitmatrix users, when integrated with liquid.taxi, can pay for execution in any desired asset. This means users can interact with a smart contract without holding the gas asset such as L-BTC. This brings an overall frictionless user experience.
reply
10 sats \ 1 reply \ @ln123 27 Sep 2022
Awesome!!
Surely your community group should be on Matrix, not Telegram :-)
Ok, serious question - where are the docs? I did a quick search but couldn't find them.
reply
1 sat \ 0 replies \ @bitmatrix OP 27 Sep 2022
Thanks for your input; there're various articles on Medium to explain the overall Bitmatrix architecture: https://medium.com/bit-matrix
And, here's a video on line-by-line stack execution of a liquidity pool contract.
https://youtu.be/wxtGDmM7uJU
Also, please see Design Paper Early Preview. The paper reflects the most-up-to-date Bitmatrix architecture:
https://docs.bitmatrix.app/v1/11_21_21/Bitmatrix_Paper_Early_Preview.pdf
reply
0 sats \ 0 replies \ @03755fbaea 27 Sep 2022
Why is the AMM liquidity on Liquid for ANTS!!??
reply