High Tower
@htwtech
1/12 Wait, someone actually built working DeFi on Bitcoin L1? @OmnityNetwork made Ordinals and Runes tradeable across chains. Plus AMM swaps directly on #Bitcoin. Let's dig into how it works 🧵 https://t.co/mtlo0WlxhN 2/12 #Bitcoin has native assets now - Ordinals for NFTs (data inscribed on sats) and Runes for fungible tokens (using UTXOs and OP_RETURN). Trading these on L1 is painful. High fees, slow confirmations, zero composability. Moving them between chains is even worse
0 reply
0 recast
1 reaction
High Tower
@htwtech
3/12 Omnity uses two main parts: 🌐 Omnity Hub for interoperability 👨💻 REE (Runes Exchange Environment) for on-chain execution Both use @ICPHUBS to coordinate Bitcoin transactions directly. Everything stays trustless through cryptographic proofs 4/12 The Hub connects Bitcoin with #Ethereum, #Solana, #TON, #ICP, and various Bitcoin L2s through a hub-and-spoke architecture.
0 reply
0 recast
1 reaction
High Tower
@htwtech
April 2024 saw the first trustless Rune transfer between Bitcoin and ICP. Assets burn on one chain, mint on another, all verified on-chain https://t.co/QtjMJ77YxL 5/12 Cross-chain process: burn asset on #Bitcoin (canister detects via light client), mint equivalent on target chain. Wait 4-6 blocks for confirmation Same process to bring assets back. Light clients maintain security comparable to running full nodes
0 reply
0 recast
0 reaction
High Tower
@htwtech
6/12 REE uses Decentralized PSBT Signing (DPS) to bring DeFi to #Bitcoin. Financial protocols run as ICP canisters called "exchanges" that manage Bitcoin liquidity pools. These exchanges hold dedicated Bitcoin keys and participate in multi-party transaction signing 7/12 How a swap works: ✨Create PSBT (defines inputs/outputs) ✨Sign with your Bitcoin key ✨REE Orchestrator validates everything ✨Checks UTXOs and #Rune balances via indexer ✨Exchange canister co-signs ✨Broadcast to Bitcoin network
0 reply
0 recast
0 reaction