A group of developers has managed to publish Uniswap’s smart contracts on the Bitcoin network. With that they hope take advantage of the emergence of BRC-20 tokens on Bitcoin’s network and create an ecosystem for decentralized financial applications.
It concerns Trustless Market, a protocol that now runs daily volumes of more than $ 500,000 and has already attracted more than 2,000 users. Liquidity partners receive 2 percent on each swap.
DeFi on Bitcoin?
The question remains to what extent we can really label this as DeFi. Most tokens on Bitcoin are memecoins, instead of tokens that can do something functional in a decentralized application. But we cannot deny that it is a nice start for this sport on Bitcoin.
“We want to make Bitcoin as usable as possible. That means more than just as a digital currency. We started with art, then artificial intelligence and DeFi is the logical next step,” said @punk3700, one of the developers of Trustless Market.
“It’s still super early. It feels a bit like Uniswap in 2018, but it’s a lot of fun,” he continues. The total market for DeFi applications is currently worth a whopping $47 billion. Bitcoin is nowhere near that.
New development
Before Trustless Markets plunged into Bitcoin, it was basically not possible to use DeFi applications on Bitcoin. Instead, people had to tokenize their Bitcoin on the blockchain of, for example, Ethereum in order to do something with it in the DeFi world.
For example, you got a synthetic version of Bitcoin on Ethereum, for example Wrapped Bitcoin (WBTC), which you can then use in the DeFi ecosystem on Ethereum.
The recent introduction of Bitcoin Recent for Comment however, token standard allows to build tokens on Bitcoin. Which has caused an explosion of projects on Bitcoin in recent months.
It is not really possible to name a project that has made a mega breakthrough, although some projects are slowly starting to build up an impressive market cap. At the moment, 18,266 tokens have been launched on Bitcoin and together they have a market cap of USD 570 million.