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BRIDGING BITCOIN TO DEXES

Preface​

  • Uniswap Has been a Huge market player for quite a long time. it good history of trading volume of crossing over a billion USD volume in a single day even in layer 2s.
  • Uniswap changed the landscape of how asset swaping can be achieved in a single chain. It has four versions released so far with new innovations in each versions. Yet it lacks Huge potential of being able to swap assets beyond its current chain.
  • In this spec sheet we will look into How this can be achieved with Xythum.

Prerequisites​

  • A user who is opting for such feature would need a Xythum built wallet to installed in their browser.
  • This wallet would allow users to swap cross chain assets natively accross several dexes and defi apps

Chromium extensions offer a way to inject content scripts into any website. with valid permissions. this is where we are going to start our journey of bringing bitcoin to uniswap. Once user downloads Xythum wallet [ which offers inbuilt cross chain interoperability and ai assistance ], wallet inject scripts into defi applications. these scripts would be pre built independently according to the application independently.

Once User lands on Uniswaps. injected content scripts adds bitcoin asset ticker and other metadata to the UI. User using the application wouldnt notice any difference, except he would have a added bitcoin NATIVE asset in swapable tokens list.

Journey​

  1. User selects Bitcoin as from Asset and on chain USDC as to asset and respected from amount.
  2. Followed by this action content scripts trigger a API call to Xythum Orderbook to get a Quote.
  3. Orderbook responds how much USDC user would end up after the swap.
  4. User proceeds with do swap. Up on Order initiation user gets a popup with a address where user is meant to send their funds to.
  5. On confirmation of assets on bitcoin chain. Ozone watchers trigger bridging of Bitcoin to destination chain (chain which user’s (UNISWAP) is in).
  6. Newly Minted xBTC (xythum Btc) lands in users wallet after bridging.
  7. Now that half of swap is complete Uniswap takes care of rest of swap. Newly Minted xBTC uses uniswap liquidity to swap to usdc on uniswap UI.
  8. User would be requested with traditional uniswap Swap confirmation in their metamask. up on signing and broadcasting this. users xBTC will be totally converted to USDC.

PERK : if user feels while swaping their Btc to usdc prices fluctuated they can hodl on to xBTC can complete their swap when they feels it as right time.

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