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)

  1. Deposit: User transfers BTC or tokens into a DotSwap-managed multisig wallet.

  2. Balance Update: User balance is credited in the DotSwap off-chain ledger.

  3. Swap Execution: Trades are matched and settled instantly between internal balances.

  4. 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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