How it works

On DotSwap, every swap is executed directly on the Bitcoin base layer—no smart contracts, no wrapped assets, and no custodians. Instead of relying on trusted intermediaries, DotSwap uses cryptographic coordination to enable efficient peer-to-peer exchange of native Bitcoin assets like BRC-20 and Runes.

1. Swap Initiation

The user connects their wallet and submits a swap request via the DotSwap frontend. For example, a user may wish to exchange Runes tokens to Bitcoin.

2. Nexus Coordination

The request is routed through the Nexus Layer—a self-hosted coordination module that:

• Computes pricing using CPMM or CLMM logic

• Retrieves real-time liquidity pool state

• Initiates a threshold signing process by requesting approvals from other active Nexus nodes

This distributed process ensures that no single party can execute a trade unilaterally, preserving non-custodial security and protocol integrity.

3. Transaction Signing

A valid Bitcoin transaction is constructed and partially signed by participating Nexus nodes. The user then completes the final signature, maintaining full custody over their funds at all times.

4. On-Chain Settlement

Once all required signatures are gathered, the transaction is broadcast to the Bitcoin network. Settlement is native, secure, final, and fully transparent.