Bitcoin Channel
Bitcoin Channels are a BTC-native layer on DotSwap designed to enable fast, secure, and cost-efficient swaps of Bitcoin-based assets such as Runes. By using Bitcoin Channels, users can execute multiple trades without waiting for each on-chain confirmation, significantly improving trading speed and user experience.
How Bitcoin Channels Work
Bitcoin Channels provide a mechanism to temporarily lock BTC or Runes into a multi-signature address, enabling near-instant swaps off-chain. The system relies on Bitcoin-native features such as Multi-Signature Addresses and Hashed TimeLock Contracts (HTLCs) to ensure trustless, non-custodial operation.
🔐 Multi-Signature Security
Your committed assets are stored in a multi-signature address that requires signatures from both you and DotSwap for any movement. This guarantees that funds cannot be moved unilaterally by either party. This setup mirrors how you manage UTXOs in your own Bitcoin wallet — DotSwap cannot move your funds without your explicit co-signature.
This means you can treat your committed assets just like your personal UTXOs — you retain full control, visibility, and withdrawal ability, even though they’re temporarily committed to a swap channel.
⏳ HTLC-Based Reclaim (Failsafe Only)
HTLCs act as a failsafe mechanism in case DotSwap becomes unavailable. They are not the primary method of reclaiming funds. Normally, you can withdraw through the DotSwap interface at any time. However, if needed, you can independently reclaim funds on-chain using a provided unlock script after a 30-day lock period.
Key Benefits
Instant Execution: Eliminate the wait for Bitcoin block confirmations. Swaps execute near-instantly.
User Control: Funds remain under your joint control via multi-signature wallets. DotSwap has no custodial access.
Fail-Safe Reclaim: Even in worst-case scenarios (e.g., DotSwap downtime), HTLCs enable secure withdrawal after the lock period.
Getting Started
Connect Wallet Navigate to the Bitcoin Channel section and connect a supported wallet.
Commit Assets Deposit BTC or Runes into a Bitcoin Channel. DotSwap generates the commit transaction for you.
Perform Swaps Use your committed funds to execute up to 25 swaps per UTXO per block.
Monitor Channel Track both available and locked balances in your Bitcoin Channel dashboard.
Reclaim Funds
Via UI: Withdraw at any time using the DotSwap interface.
Via HTLC Failsafe: After 30 days, use the provided unlock script to reclaim your funds independently. Full technical documentation and redeem script samples are available on our GitBook.
Limitations
Bitcoin Network Fees: Committing and reclaiming funds incur standard BTC network fees.
Asset Support: Only BTC and Runes are currently supported. More assets may be added in the future.
HTLC Delay: If reclaiming via HTLC, a 30-day waiting period is required.
Troubleshooting
Issue: Commit or reclaim delay Cause: Network congestion Solution: Wait for confirmation and check mempool status.
Issue: Transaction failed Cause: Insufficient wallet balance for fees Solution: Ensure enough BTC for both commit and reclaim fees.
Frequently Asked Questions
Q: What if DotSwap goes offline? A: You can still reclaim your funds after 30 days using the provided HTLC unlock script.
Q: Can I reclaim my funds anytime? A: Yes. You can use DotSwap’s UI for immediate withdrawal or wait 30 days for on-chain unlock via HTLC.
Q: Are there fees for using Bitcoin Channels? A: DotSwap does not charge channel-specific fees. However, you must cover Bitcoin network fees.
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