StackSwap Raises $1.3 Million to Build DEX on Bitcoin Network

StackSwap, the first complete DEX and Launchpad built on the Bitcoin Network has attracted the attention of investors and recently completed the first round of its private sale. The Stacks Foundation led the investment round and included top investors like HashKey, Genesis Block Ventures (GBV) and SOSV.

Stackswap gave a statement saying, “We are very happy that Stackswap will be able to engage with a wider scope of audience and institutions on our new trading platform through this investment. We have a very competent global team of professional developers who have researched and have had extensive experience with the DeFi and related systems for a long time.”

The private fund was held to raise funding for the DEX, which aims to deploy the first fully operational DEX on Bitcoin powered by Stacks’s Proof of transfer (PoX) mechanism. Stacks is a layer-1 solution that is designed to enable smart contract functionalities on Bitcoin.

Its proof of transfer (PoX) takes advantage of the decentralization and secure blockchain of Bitcoin in combination with the scalable Stacks protocol. Transactions made on the Stacks protocol are verified on the Bitcoin network. PoX connects to the Bitcoin network at 1:1 ratio and transactions can be viewed on the bitcoin blockchain explorer.

This unique system solves the problems of scalability on the Bitcoin network and allows the development of fully automated and decentralized applications.

A DeFi Hub on the Bitcoin Network

StackSwap is the first platform to use PoX and will become the DeFi hub of the Stacks ecosystem. The DEX uses the automated market maker model that ensures that trades are always matched as long as there is sufficient liquidity in trading pools. It also supports DeFi features like liquidity mining, and liquidity providers (LPs) can stake their tokens in supported pools for interests and rewards.

The StackSwap launchpad is another important component of the DEX and will enable projects to list their tokens with minimal difficulties. They can also create liquidity pools and distribute tokens without complex requirements.

Users can also take part in the PoXL mining, which is less energy consuming and reuses existing bitcoins as ‘’proof-of-computation. Miners represent their cost of mining in bitcoins directly and don’t require expensive mining rigs.

With these functions, users can generate profits in Bitcoin through staking and depositing Stacks (STX) through an unprecedented Bitcoin-based reward payment system.

Exciting future ahead

StackSwap is in a great position to become the leading DEX in the Bitcoin ecosystem. The DeFi revolution has largely been confined to other blockchain protocols, but the Bitcoin sector is beginning to pick up steam.

The impending launch of StackSwap will provide an ideal platform for Bitcoin enthusiasts to experience the power of DeFi on the Bitcoin network for the first time. Stackswap plans to provide a wide range of financial services such as AMM based swapping and liquidity mining, as well as more complex functions such as Token Launchpad and PoXL mining, along with serious support for the early-stage entrepreneurs to bring lasting value to the ecosystem.

Source: https://blockonomi.com/stackswap-raises-1-3-million-to-build-dex-on-bitcoin-network/