Bitmatrix, an automated market maker (AMM) protocol, has launched its mainnet beta that will allow bitcoiners to create their own liquidity pool and conduct trustless exchanges on the Liquid Network, according to a press release sent to Bitcoin Magazine.
Users who want to create their own liquidity pools just need to connect the Bitmatrix web interface to their Marina wallet, select the desired pairs, provide an initial amount and click trade.
AMMs provide the useful utility of performing asset exchanges, in this case with liquid assets, as well as allowing users to connect and pool resources without the assistance of centralized entities.
“After rigorous testing, we are confident that we have found the most optimal design to bring AMM to Liquid and the Bitcoin ecosystem,” said Burak Keceli, founder of Bitmatrix. “We expect Bitmatrix to enable some meaningful new use cases and drive further user adoption.”
To create an automatic trustless protocol, Bitmatrix leverages a number of Tapscript opcodes such as: transaction introspection, 64-bit arithmetic, and elliptic curve operations, also known as pacts.
After the initial beta, Bitmatrix has reduced its fees and increased concurrency from 8 to 32 slots, meaning each liquidity pool can handle up to 32 trades per minute, and this volume is expected to increase with more updates
In addition, the main network will launch a new feature that will enable custom rates. So users will be able to set rates between 0.01% and 1.00% with the default rate being 0.25%.
“Going forward, we look forward to hearing your feedback and releasing a more optimized version with the new Simplicity smart procurement language in Q4 2023,” added Keceli.
The Liquid network is a layer 2 scaling solution that leverages a sidechain to create a two-way connection between BTC and Liquid assets. BTC is represented on the liquid network as L-BTC and is treated as an equivalent value to BTC.