Taparooswap Launches First AMM on Bitcoin’s L1

Taparooswap, the first decentralized automated market maker (AMM) on Bitcoin’s Layer 1, has launched, opening new DeFi possibilities on Bitcoin. Unlike Ethereum-based platforms such as Uniswap, Taparooswap provides decentralized liquidity pools directly on Bitcoin’s main layer. Users can now swap tokens and add liquidity on a fully decentralized Bitcoin network.

Key Highlights:

• Mainnet Beta Phase: Taparooswap is running a two-week Mainnet Beta. Users are encouraged to keep swaps and deposits within their risk limits and report issues on Discord.
• Wallet Options: The platform currently supports the Unisats wallet. The Tap wallet will be added soon, with more options planned for Beta.
• Transaction Features: Slippage settings range from 5% to 50% to match liquidity levels. Due to Bitcoin’s slower speed, Taparooswap recommends using Fast or High gas options.

According to the team,

After connecting a wallet, users can swap BTC for various tokens or exchange tokens directly. The swap process involves choosing slippage, entering the amount, and paying for inscriptions. Transactions rely on Bitcoin’s Layer 1 security, with potential delays due to block confirmation times. Users can track transactions live through the mempool.

Taparooswap also includes liquidity pools where users can add BTC or tokens by selecting existing pools or creating new ones. Trading fees are set at 0.6% for both swaps and withdrawals, which benefit liquidity providers. A BTC/TAP pool is already available to encourage initial trades.

With this Beta launch, Taparooswap aims to lead Bitcoin’s entry into decentralized finance. As the first AMM on Bitcoin’s main layer, it marks a new phase for DeFi on the Bitcoin blockchain.