BiS AMM Overview: Instant Swaps for BRC2.0 and Soon for All BRC20

Good morning, traders on Bitcoin!

In early September, we shipped BiS DEX V0.1 with an order book — an early proof of concept for smart contract trading on Bitcoin L1. As the first beta trading dapp for BRC2.0, it offers a slower and more costly experience compared to DEXs on other chains.

Our vision for BiS DEX is to deliver a trading experience on par with Hyperliquid or Solana, while staying fully anchored to Bitcoin’s security. Today, we’re one step closer to that goal with BiS AMM — a sequencer powered dApp for BRC2.0, and soon, for all BRC20 assets.

BiS AMM at a glance;

A fast, fully non-custodial automated market maker built on Bitcoin.

• Fully non-custodial design leveraging smart wallets.
• Swaps execute instantly through a sequencer, with settlement on Bitcoin.
• Processes up to ~20,000 trades per block.
• MEV paths removed by design; no mempool competition.
• Each swap costs about $0.30 in miner fees at 1 sat/vB.
• Deposits into dApp confirm in one block.
• Withdrawals confirm in one to three blocks, depending on queue size.

Coming to Bitcoin Signet very soon. Mainnet release in November, after audits and public testing is complete.

Swaps & Trading Experience

BiS AMM is the first sequencer powered dApp for BRC2.0.

All actions are cryptographically signed, aggregated, compressed, and batch-inscribed on Bitcoin, providing a trading experience similar to Hyperliquid — yet secured by Bitcoin L1.

Deposits

Users can enable instant trading by funding their smart wallets with BTC or BRC2.0 tokens. Each deposit action requires one block confirmation before becoming active.

Swaps & Liquidity

Once a user funds their smart wallet, they can swap, create liquidity pools, and add or remove liquidity without waiting for block confirmations.

Every action is executed instantly by the sequencer, similar to “in-mempool” trading, and then finalized on-chain.

Each swap operation still has a ~$0.30 miner fee at 1 sat/vB, as all operations are batch-inscribed on Bitcoin, inheriting Bitcoin’s full L1 security.

Withdrawals

Users can withdraw native BTC, wrapped BTC, or 2.0 tokens anytime.

Token withdrawals typically confirm within 1 to 3 blocks, depending on the queue size.

Smart Wallets & Secure Non-Custodial Design

“Not your keys, not your coins” — the golden rule of the crypto world.

BiS AMM leverages smart wallets for fully non-custodial swap trading. When you are depositing funds into BiS AMM, a smart wallet is generated and linked exclusively to your main Bitcoin wallet, ensuring you remain the sole controller of your assets.

This elegant design makes BiS AMM a true non-custodial DEX, without relying on multisigs or “trust-minimized” setups.

⚠️ Security note: if you lose access to your main wallet’s keys, you also lose control of your smart wallet, so safeguard your keys carefully.

BiS Token, LP Farming, Points & Incentives

The official BiS Token is in the works and a portion of the supply will be used to further incentivize liquidity pools and platform rewards. More details on BiS Tokenomics will be shared at a later stage.

In addition to BiS token incentives, any team can permissionlessly design and deploy their own liquidity pool reward mechanisms.

During the DeFi summer on Ethereum, many projects rewarded users who locked LP tokens into smart contracts to mine additional tokens — a model that sparked powerful flywheels. This type of composable liquidity design is still missing on Bitcoin, and we are committed to supporting builders who explore these advanced token mechanics on BRC2.0.

Fees, Referrals and Creator Rewards

In the first version of BiS AMM, the LP fee is fixed at 0.3%, and cannot be adjusted.

The total base fee per swap is 0.55%, distributed as follows:

• 0.30% to liquidity providers
• 0.25% protocol fee

Future releases will expand this structure to include referral, creator, and community rewards, allowing both builders and active participants to share in protocol revenues.

Referral Rewards will let anyone share a personal link and earn a portion of protocol fees paid in Bitcoin.

Creator & Community Rewards will distribute a share of trading revenue to the project’s builders and community, aligning incentives and strengthening liquidity across the Bitcoin and BRC20 ecosystem.

These reward mechanisms will be introduced gradually after mainnet launch, with more details shared in upcoming updates.

Wrapped Bitcoin Abstraction & Stablecoins

For native BTC to be utilized in BRC2.0 dApps, it must first be wrapped. This process often adds friction and complexity for users. To deliver a seamless experience, BiS DEX employs abstraction methods powered by the Subfrost protocol, enabling permissionless and decentralized BTC wrapping and unwrapping handled entirely behind the scenes.

Stablecoins will also play a key role. They provide reliable trading pairs and, together with wrapped BTC, lay the foundation for deeper liquidity and more efficient capital flows. Timelines remain uncertain, but efforts are underway to bring reputable stablecoins onto Bitcoin through BRC2.0.

The Next Chapter for BRC20 and Bitcoin DeFi

The BRC20 ecosystem represents one of the most important frontiers in Bitcoin’s evolution. With the BRC2.0 upgrade, it becomes the foundation through which true Bitcoin DeFi will flourish, unlocking an emerging market with hundreds of billions in potential.

BiS AMM is a major step forward in this journey, proving that decentralized trading on Bitcoin can be fast, fluid, and fully non-custodial.

We’ve been shaping the future of BRC20 and Bitcoin-native assets for almost three years, and we’ll continue to deliver innovative products and protocols built on Bitcoin.

Thank you for your support. BiS Delivers 🫡