Nexus

DotSwap Nexus is the decentralized liquidity coordination layer powering the next generation of trading for Bitcoin-native assets. Built for Bitcoin and leveraging its unique primitives — UTXO architecture and Partially Signed Bitcoin Transactions (PSBTs) — Nexus introduces a revolutionary way to execute swaps without giving up custody, trusting intermediaries, or relying on smart contracts.

DotSwap Nexus enables peer-to-peer, on-chain swaps of Runes and BTC itself, all without wrapping or bridging assets. Instead of traditional AMM or centralized orderbook mechanics, Nexus unifies liquidity intents from self-custodial market makers into an aggregated, dynamic pool optimized for price discovery and capital efficiency.

Core Principles

• Trustless Coordination: Uses PSBTs to ensure assets never leave the user's control until both parties have signed.

• Bitcoin Native: Works directly with UTXOs and is designed for the Bitcoin base layer — no wrapped assets, no EVM dependencies.

• Non-Custodial by Default: Market makers operate their own liquidity through Nexus APIs without depositing funds into centralized contracts or custodians.

• Composable Liquidity: All orders and intents are aggregated in a modular way, allowing for complex trade paths and optimal execution.

How It Works

1. User Initiates a Swap

   • User requests a trade via the DotSwap interface (e.g., swapping $DOG to $MIM).

2. Nexus Matches Intentions

   • The Nexus network aggregates liquidity intents from market makers who run self-custodial Nexus nodes.

3. Transaction Construction (PSBT)

   • Nexus coordinates the construction of a PSBT that defines the asset exchange. It includes UTXOs from both parties.

4. Both Parties Sign

   • The user and the selected liquidity provider each sign the PSBT.

5. Broadcast to Bitcoin

   • Once fully signed, the transaction is broadcast to the Bitcoin network, completing the atomic swap.

Why It Matters

• Self-Custody Always: Your funds never leave your wallet until the transaction is confirmed on-chain.

• Truly Decentralized: No central matching engine or custody layer. Liquidity is provided by a network of independent market makers.

• Secure by Design: Built entirely on Bitcoin’s proven infrastructure — PSBT, HTLCs, and multisig.

• Flexible & Scalable: Nexus APIs allow anyone to become a liquidity provider. Aggregation logic supports CLMM-style pricing.

Vision Beyond Swaps

DotSwap Nexus is more than a swap engine — it’s the foundation for a complete Bitcoin-native DeFi layer. Future features powered by the same architecture include:

• Concentrated Liquidity: LPs specify price bands to optimize capital efficiency

• Perpetuals & Margin: Trade Bitcoin-native assets with leverage

• Lending & Borrowing: Peer-to-peer credit and yield systems secured by native UTXO positions

These innovations will unlock powerful financial tooling for Bitcoin holders, all while staying true to Bitcoin’s ethos of decentralization and user ownership.

Current Status

DotSwap Nexus is actively in development and preparing for public beta. Early partners include experienced liquidity providers from the Runes and Bitcoin ecosystem, and we invite community participation in testing and improving the protocol.

To stay updated or get involved:

• Follow us on X @dot_swap

• Join the community on Telegram and Discord

• Build on Nexus with our open APIs and technical documentation

DotSwap Nexus is where Bitcoin-native DeFi begins — no bridges, no custodians, no compromises.