Bitflow: A Real-Yield DEX for Bitcoiners
by Claire Topalian on June 28, 2023

Dylan Floyd, CEO and Co-Founder of Bitflow Finance, brings 7 years of software engineering experience in distributed systems, along with expertise in Industrial Engineering focused on Economic and Financial Systems. With a master's in Computer Science from Georgia Tech, he is driven by Bitcoin's potential for financial sovereignty and committed to building the Bitflow protocol.
The recent surge in Bitcoin activity has created demand for robust DeFi infrastructure to support the growing ecosystem. With the emergence of ordinals and advancements in Discreet Log Contracts (DLCs), Taproot, and Stacks, new possibilities are being unlocked, bringing a tidal wave of opportunities to Bitcoin.

However, the challenge remains: there is no safe and reliable way to earn BTC yield on your BTC holdings. This is where Bitflow comes in, a decentralized exchange (DEX) for Bitcoiners, enabling users to earn a yield on native BTC.
  • Claire:
    How does Bitflow work?
    Dylan:
    Bitflow empowers users to trade and earn with Bitcoin without relying on central points of failure, replacing malicious middlemen with Partially Signed Bitcoin Transactions (PSBTs), Atomic Swaps, Layer-2 smart contracts, sBTC, and decentralized liquidity pools, unlocking the full potential of Bitcoin.

    Recent Bitcoin fee spikes highlight the need for a robust DeFi ecosystem and the growing demand for more mature Bitcoin layers., and Stableswaps is just the first step in Bitflow's vision to build an economy of real yield products on the most secure, decentralized, and permissionless chain in the world.
  • Claire:
    What sets Bitflow apart?
    Dylan:
    Bitflow’s decentralized exchange (DEX) provides unique advantages to Bitcoiners in DeFi, allowing them to trade and earn with BTC while leveraging the security and network effects of the Bitcoin blockchain.

    • Bitcoin Swaps: Trade BTC without custodial risk. Say hello to a more secure, transparent, and decentralized way of trading.
    • Trade Stablecoins: Efficiently trade stable assets with deep liquidity pools optimized for low slippage and fees.
    • Add/remove single sided liquidity: This enables users to add or remove liquidity without needing to provide an equal amount of two different assets.
    • Earn Real Yield Based on Real Trading Activity: LPs (liquidity providers) deposit USDA and sUSDT tokens → earn USDA and sUSDT. Deposit BTC → earn BTC.
    • Open Source: All Bitflow code is open source, including smart contracts and front-end development.
  • Claire:
    Can you share more about how Bitflow unlocks Bitcoin's potential?
    Dylan:
    BitFlow's mission is to empower Bitcoiners by enabling them to trade, earn, and generate real yield with their native BTC. By replacing centralized intermediaries with smart contracts and decentralized liquidity pools, BitFlow allows Bitcoin to become a productive asset without compromising security or control. This integration between DeFi and Bitcoin opens up a world of possibilities for users to unlock the true value of their digital assets.
  • Claire:
    How does Bitflow help to expand Bitcoin's potential in DeFi?
    Dylan:
    BitFlow builds the foundation of DeFi for Bitcoiners through its innovative stableswap protocol, which ensures efficient and low-friction trading experiences. By offering stablecoins and optimized liquidity pools, BitFlow enhances the trading journey, facilitating seamless and decentralized transactions. This commitment to creating an economy of real-yield products on the secure and permissionless Bitcoin blockchain sets a significant milestone for the future of DeFi.
  • Claire:
    How is Bitflow able to preserve trustless, decentralized, and secure trading?
    Dylan:
    Bitflow replaces centralized entities with smart contracts and decentralized liquidity pools, allowing Bitcoin to generate a yield without the need for intermediaries. This empowers Bitcoiners to earn a real yield on their native BTC while maintaining full control over their assets.
  • Claire:
    What's the significant of Bitflow in the context of sBTC?
    Dylan:
    The upcoming sBTC peg mechanism is a significant step forward in building ideal Bitcoin layers, enabling users to unlock the full potential of their BTC holdings while benefiting from the security and network effects of the Bitcoin blockchain. sBTC will further strengthen Bitflow's mission to build an ecosystem of real yield products on the most secure, decentralized, and permissionless chain in the world.
  • Claire:
    What is unique about your approach to liquidity provision?
    Dylan:
    Bitflow offers stableswap pools, which are designed to minimize the risk of impermanent loss while providing a passive income on price similar assets. Unlike other pools, Bitflow's pools generate real Bitcoin yield for liquidity providers, derived from actual trading activity.
  • Claire:
    What types of pools will Bitflow offer?
    Dylan:
    Bitflow will initially offer stableswap pools, including pairs such as USDA/sUSDT, xUSD and UWU. With the upcoming release of sBTC, new pool pairs such as xBTC/sBTC, and tripools including sBTC/STX/USDA will become available. These pools enable users to trade and earn a yield on their holdings in a trustless manner, with all rewards claimable in BTC.

  • Claire:
    How does Bitflow's liquidity pool infrastructure benefit Bitcoiners and Protocols?
    Dylan:
    Bitflow’s liquidity pool infrastructure serves as a vital building block for DeFi applications, fostering a vibrant ecosystem. With BitFlow, applications can leverage shared liquidity, real yield, and access open-source code to enhance their platforms. Additionally, BitFlow's framework can facilitate the creation of new financial products, such as Bitcoin-backed stablecoins, providing Bitcoiners access to the benefits of stablecoins without having to relinquish control of their BTC.
  • Claire:
    What makes Bitflow an innovative solution for Bitcoiners seeking to earn a yield?
    Dylan:
    Bitflow leverages smart contracts and decentralized liquidity pools to offer a secure and transparent platform for Bitcoiners to trade and earn a real yield on their native BTC. By harnessing the security, capital, and network of Layer 1 Bitcoin, Bitflow is at the forefront of permissionless innovation on the Bitcoin blockchain.
  • Claire:
    What’s coming up next for Bitflow?
    Dylan:
    Bitflow released its first stableswap protocol on testnet in December 2022 and is now preparing for a mainnet launch in Q2 of 2023. The team is also establishing itself as a supplier within the Magic Protocol, enabling easy swapping between native BTC and wrapped/pegged versions on Stacks. The upcoming launch of sBTC will further allow users to earn a native Bitcoin yield through Bitflow's decentralized liquidity pools.

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