What is Ordiswap Protocol – Facilitating Liquidity Through BRC-20 standard and Ordinals (ORDS)

Ordiswap is a protocol aiming to reshape liquidity dynamics on Bitcoin’s native layer through BRC-20 standards and Ordinals. It represents a notable stride forward in decentralized finance (DeFi) for the Bitcoin ecosystem.

Essential information for their token is available on the MEXC Digital asset introduction page. Furthermore, we are listing (ORDS/USDT – Trade it here) on the Innovation Zone! Check it out now!

What is Ordiswap Protocol - Facilitating Liquidity Through BRC-20 standard and Ordinals (ORDS)
What is Ordiswap Protocol – Facilitating Liquidity Through BRC-20 Standard and Ordinals (ORDS)

What is the BRC-20 Standard?

The BRC-20 standard is an experimental framework showcasing the creation of fungible tokens on Bitcoin’s layer 1. Originating from a playful Dune dashboard concept and drawing inspiration from .sats names, BRC-20 tokens made their debut in March 2023. Since then, they have constituted approximately 3% of all Bitcoin transactions, boasting a user base of 250,000 and achieving impressive on-chain and off-chain volumes of over $150 million and $3 billion, respectively.

BRC-20 facilitates the creation, minting, and transactions of fungible tokens on the Bitcoin blockchain. Furthermore, BRC-20 seamlessly integrates with ordinal and inscription systems. Meanwhile, it is compatible with other Bitcoin standards and layer 1 chains like Ethereum and Stacks through bridging, vaulting, or wrapping. Operating on layer 1 Bitcoin, BRC-20 tokens inherit robust security mechanisms. It prevents double-spending by binding transferable balances to a single satoshi.

How Does the Ordiswap Protocol Work?

At its core, Ordiswap seamlessly combines off-chain server management with the unique tokenization capabilities of the BRC-20 standard. This integration heralds a new era of direct trading on Bitcoin’s native layer. Furthermore, it navigates decentralized trading intricacies without relying on on-chain smart contracts, ensuring both security and efficiency.

Ordiswap’s innovation lies in its ability to conduct trades and facilitate liquidity while adhering to the fundamental tenets of the Bitcoin network. By leveraging the principles of the BRC-20 standard and ordinals, Ordiswap enables periodic settlements directly on the Bitcoin network. This aligns transactions with the inherent security and finality of Bitcoin’s blockchain.

This approach aligns with decentralized finance principles, championing transparency, trustlessness, and permissionlessness similar to Ethereum’s foundational values. By providing a direct avenue for users to engage in BTC/BRC-20 trades on Bitcoin’s native layer, Ordiswap eliminates reliance on external intermediaries, offering a direct, efficient, and secure means of accessing liquidity.

Features of Ordiswap Protocol

Ordiswap Automated Market Maker (osAMM)

Ordiswap’s core functionality revolves around the direct trading of crypto assets, all settled seamlessly on Bitcoin’s robust layer. This is possible through Ordiswap’s automated market-making (AMM), allowing users to trustlessly exchange a diverse array of Ordinals and BRC-20 assets. Here is the architecture overview:

  1. Off-Chain Server: Ordiswap’s off-chain server manages the logic and parameters of the Automated Market Maker (AMM). This includes handling trades, liquidity provision, and setting dynamic AMM parameters.
  2. BRC-20 Tokens: These tokenized assets on the Bitcoin network represent various assets, and Ordiswap’s AMM facilitates the trading of these tokens.
  3. Oracle System: Ordiswap’s off-chain server interacts and aggregates with several oracles to obtain real-time price feeds for the BRC-20 tokens. Oracles play a crucial role in maintaining accurate pricing information.
  4. User Wallets: Users interact with our AMM through their wallets, sending trade requests to the off-chain server. Ordiswap currently supports the Unisat Wallet.

Off-Chain Balance States

The off-chain balance states in Ordiswap introduce functionality for BRC-20 and Ordinal swapping native to Bitcoin. This innovation eliminates dependencies on Layer-2 solutions (L2s) and Centralized Exchanges (CEX), preserving user custody throughout the swap and utilization processes. In contrast to conventional DEXs heavily reliant on on-chain settlement, Ordiswap strategically employs off-chain balance states for efficient swaps, minimizing transaction costs and latency.

This approach enhances the protocol’s scalability, enabling it to process a significantly higher number of transactions without compromising security or user experience. By leveraging off-chain balance states, Ordiswap effectively unlocks billions of dollars in liquidity on Bitcoin’s layer-1. The off-chain model facilitates swift and cost-effective swaps, attracting liquidity providers and traders alike.

Ordiswap Oracle

Ordiswap’s synthetic oracle introduces a new approach to pricing pools within the ecosystem. In their design, all Ordiswap pools serve a dual purpose as oracles, offering seamless access to historical price and liquidity data. The synthetic oracle employs an array of observations to store historical data. Initially, each pool monitors a single observation, dynamically updating it with the progression of blocks.

Furthermore, this expansion allows for an increased number of tracked observations. It is capped at a maximum of 65535, resulting in an extended data availability period of approximately 9 days or more. By storing price and liquidity history directly within the pool contract, Ordiswap substantially mitigates the risk of logical errors in calling contracts.

Where to buy ORDS Token

You can find ORDS Tokens here at MEXC! We are listing ORDS/USDT in our Innovation Zone!

What is the Price of ORDS Tokens?

The ORDS Token is currently trading at MEXC with a live price of $0.05628. You can check the live price of their token right here!

How to buy ORDS Tokens on MEXC

You can buy ORDS Tokens on MEXC by following the steps:

  1. Log in to your MEXC account. Click on [Spot].
  2. Search “ORDS” using the search bar to see the available trading pairs. Take ORDS/USDT as an example.
  3. Scroll down and go to the [Spot] box. Enter the amount of ORDS you want to buy. You can choose from opening a Limit order, a Market order, or a Stop-limit order. Take Market order as an example. Click [Buy ORDS] to confirm your order. You will find the purchased ORDS in your Spot Wallet.

You can find a detailed guide on how to buy ORDS Tokens here.

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Meanwhile, check out all of the listings in the Innovation and Assessment zones as well as the major tokens in the Main Zone – we have more amazing projects to come! Visit the Hot Projects section as well to uncover more featured popular tokens. Lastly, feel free to visit MEXC Academy to learn more about cryptocurrency!

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