DotSwap V1
DotSwap V1 was the initial implementation of DotSwap’s Bitcoin-native swap protocol. It introduced fast and simple trading of BTC, BRC20, and Runes assets by using pre-funded user accounts held under a secure multi-signature vault structure. Unlike newer versions that focus on full UTXO custody and decentralized order coordination, V1 prioritized transaction speed and simplicity.
Key Characteristics
🔐 Custodial Multi-Signature Vaults
Users deposit assets into wallets jointly controlled by DotSwap and Safeheron.
Funds are protected by advanced MPC + multi-signature schemes.
Eliminates risk of a single point of failure.
⚡ Fast Transaction Execution
Swaps are conducted off-chain within DotSwap’s internal ledger.
No need to wait for Bitcoin network confirmation.
Ideal for users seeking high-speed trading with low latency.
🔁 Internal Balances
Deposits are credited to a user’s DotSwap account.
Trades are settled instantly by updating internal balances.
Users can withdraw funds anytime, subject to multi-signature authorization.
Trade Workflow (V1)
Deposit: User transfers BTC or tokens into a DotSwap-managed multisig wallet.
Balance Update: User balance is credited in the DotSwap off-chain ledger.
Swap Execution: Trades are matched and settled instantly between internal balances.
Withdrawal: User requests withdrawal; funds are released via co-signed Bitcoin transaction.
Security Design
Vault custody is managed through strategic collaboration with Safeheron and Slowmist.
Multisig authorization is required for all fund movements.
All vault activity is auditable and visible via transaction explorer.
Comparison: V1 vs. V3
Feature
DotSwap V1
DotSwap V3 / Nexus
Custody Model
Deposit into multisig vault
Self-custody or pooled (MMM)
Trade Speed
Instant (off-chain ledger)
Varies (depends on UTXO)
Confirmation Required
No
Yes (for on-chain transactions)
Asset Control
Shared multisig
User or operator controlled
Use Cases
High-frequency traders prioritizing execution speed
Casual users seeking fast swaps without technical complexity
Platforms or dApps needing low-latency liquidity access
Legacy Role
While DotSwap V1 has since been succeeded by more decentralized and flexible versions (such as Nexus and Limit Orders), it continues to operate as a high-speed liquidity layer with MPC-level custody. It laid the foundation for DotSwap’s multisig infrastructure and UTXO asset support, and remains a performant backend for integrated partners and services requiring instant swap capabilities.
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