Native Bitcoin swaps are now live!

Why is this a big deal? Tweet thread👇
1/ What is this?

Users can do trustless BTC swaps to stablecoins, derivatives, perpetuals, and other crypto assets.

All by pure Bitcoin transactions on the main BTC chain.

Users can purchase any digital assets (like NFTs and decentralized domains).
2/ This is a big f—king deal. Why?

Bitcoin has established itself as digital gold, but you can’t use BTC to trade without going through:

(a) centralized exchanges, or
(b) alt blockchains w/ wrapped BTC

Not anymore!
3/ Wrapped BTC is not Bitcoin, and many bitcoiners don't trust the security & decentralization of alt blockchains.

Centralized exchanges require KYC (privacy concern) and have counterparty risk of custody of your Bitcoin.

All that changes now.
4/ Stacks is a unique L1 blockchain that enables cross-chain transactions with Bitcoin: smart contracts that work with pure Bitcoin transactions.

Using Stacks, developers have built trustless swaps with native BTC!
5/ Developers have deployed working swaps with all sorts of assets like NFTs, other crypto-assets, etc.

With USDC coming to Stacks, trust-less BTC/USDC swaps can be possible.

See details:
6/ Does this mean Ethereum features are possible directly on Bitcoin? Yes.

You can have Uniswap-like AMMs built around native BTC swaps, do pure BTC transactions to interact.

Of course, with the security of Bitcoin.
7/ Bitcoin is sovereign money.

An entire open financial world will be created around Bitcoin. Native BTC swaps to new assets are a foundational building block of Bitcoin DeFi.

Bitcoin eating the banks💥

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with muneeb.btc

muneeb.btc Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @muneeb

30 Jun
Coindesk reported that USDC is planning to expand to Stacks.

This is a narrative violation that DeFi is not possible in the Bitcoin ecosystem.

So what are the benefits of USDC on Stacks? Thread👇
1/ USDC transactions would benefit from the security of Bitcoin.

USDC transactions on Stacks automatically settle on Bitcoin. To rewrite the history of these transactions, you’d need to rewrite the history of Bitcoin.
2/ Availability of USDC would open doors for USDC/BTC atomic swaps, i.e., with BTC on the main Bitcoin chain.

(@fmdroid already has a prototype of STX/BTC atomic swaps.)
Read 7 tweets
28 Jun
Back on Twitter after a week of disconnecting from it 👋

It looks like @AriDavidPaul is giving $1M in cash to someone who can implement CryptoKitties on Bitcoin.

Here is how to build that👇
1/ The straightforward way to do this would be to use SIP-009 that defines NFTs on Stacks. However, you’d be paying gas fees in Stacks (not Bitcoin).

Apps like already do this.

2/ One can argue that these NFTs “settle on Bitcoin” but are not “on” BTC.

Fair enough.

Stacks recognizes pure Bitcoin transactions for transfers/ownership, i.e., pay a gas fee in BTC.

How to use that in CryptoKitties?
Read 6 tweets
25 May
On the origin of NFTs.

How and when did NFTs start? How are they evolving? Tweet thread👇
1/ Non-Fungible Tokens (NFTs) are crypto assets that are one of a kind.

The value of one unit of cash or Bitcoin is the same as another. NFTs are the opposite of that and are unique.

It might seem like NFTs are a recent thing--they're not. NFTs have been around for a decade.
2/ Decentralized domains were the original crypto NFTs.

A decentralized domain is unique, i.e., non-fungible. Namecoin pioneered decentralized domains in 2011, launching at Bitcoin block 19,200 with merged mining.

(I registered u/muneeb there in Feb 2014.)
Read 8 tweets
18 May
Bitcoin is often misunderstood within the crypto industry. Here is how:

Tweet thread👇
1/ People don’t think beyond the Bitcoin base layer.

L2s in Ethereum or subnets in Avalanche bring additional features to base layers. 

Similarly, Bitcoin layers, like Lightning for payments or RSK/Stacks for smart contracts, bring additional functionality to Bitcoin.
2/ Bitcoin is for settlements, not payments.

The additional layers, like Lightning or Stacks, is where payments happen. On Lightning, people use sats, and on Stacks, people can use stablecoins like xUSD or Bitcoin-based assets like xBTC.
Read 7 tweets
6 May
How does the recent interest in Ethereum impact the crypto industry?

Tweet thread👇
1/ Bitcoin found product-market fit as digital gold (store of value) with no real competition in that category for years.

Ethereum's upcoming change in token economics with reduced supply has increased interest in the asset.
2/ Ethereum aims to be both (a) gas for smart contracts and (b) "ultra sound" money, i.e., compete with Bitcoin as a store of value.

Challenging Bitcoin's position as a store of value and the #1 crypto asset will undoubtedly result in tribal arguments.
Read 12 tweets
5 Apr
The ultimate Bitcoin lending app will be 100% trustless. Your BTC will never leave the main Bitcoin chain.

How can this work? Tweet thread👇
1/ Bitcoin lending is already a multi-billion dollar market. You can currently divide the market into (a) wrapped assets and (b) custodial lending.

Wrapped assets themselves can be custodial with more decentralized versions like Keep in the works.
2/ For wrapped assets, like WBTC, a synthetic asset is issued by a custodian on a separate tech stack.

Three issues:
a) Potential tax hit on BTC to WBTC conversion and back. 
b) Risk of companies in the middle.
c) Risk of blockchains other than Bitcoin.
Read 10 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!