Stackswap is the first Decentralized Exchange (DEX) to settle transactions on the Bitcoin network. It brings some of the existing DeFi tools in its Stacks network to enable users to engage in trading, liquidity mining, token creation, and yield earning opportunities.
Stackswap, a decentralized exchange that recently raised $1.3 million in funding, brings DeFi and Yield Farming to the Bitcoin network. The Stacks blockchain is designed to allow the creation of innovative tools, including Bitcoin-powered smart contracts. Bitcoin token holders will subsequently engage in DeFi and earn Bitcoin yield, which has been an exclusive mainstay to Ethereum holders.
Unlocks full DeFi potential for Bitcoin
According to the company’s website, the decentralized exchange (DEX) will offer dynamic trading tools such as arbitrage, market forecasting, and aggregate opportunities from other DEXs on other blockchains. Following the successful launch of the Arkadiko App, a self-repaying loan platform built on Stacks, users of Arkadiko can use Stackswap to swap Arkadiko’s Stablecoin, USDA for additional earning opportunities. Stackswap CEO Sungmin Aum said:
“There are a few vital pieces missing within the Stacks ecosystem when it comes to DeFi, and Stackswap acts as the key that unlocks full DeFi potential for Bitcoin. I worked with my team to create something that would support the growing demand for DeFi tools on Bitcoin, and we decided that a full-service DEX would have the strongest impact on the community.”
DeFi is short for Decentralized Finance, which refers to several financial applications in blockchain or the crypto sphere focused on disrupting the traditional economic model by eliminating intermediaries. DeFi draws from blockchain and removes human gatekeepers who usually limit the speed and sophistication of transactions while offering users less direct control over their money. DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.
Create wealth through Bitcoin yield
Yield farming is a form of cryptocurrency investment strategy that has the potential for more significant returns when compared to traditional investments. Whenever you deposit money in a savings account, you create a loan facility that the bank uses and pays you interest in return. Yield farming works in the same way, but it involves lending cryptocurrencies. The real payoff comes when the coin you invested appreciates.
The protocol enables Bitcoin holders’ intent on building Stacks projects to use Stackswap as the launching pad for creating new tokens on NFTs that inherit the security properties of Bitcoin. Projects that have issued tokens through the Launchpad will automatically be submitted for consideration to offline partner accelerators and funds such as the Stacks Accelerator. The managing Partner at Stacks Accelerator, a mentorship program for startups building on Stacks, Trevor Owens, said:
“As one of the first graduates of the Stacks Accelerator, Stackswap has created living proof that DeFi on Bitcoin is possible. With the addition of a DEX to our growing roster of DeFi tools, I think we are going to see a flurry of trading activity and more opportunities where people can create wealth through Bitcoin yield as an individual but also as a community.”
Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.