DotSwap LP

The DotSwap LP is a custodial liquidity pool operated by DotSwap to onboard passive capital and retail users who prefer a plug‑and‑play experience.

Attribute
Details

Custody

Assets held in a Multi‑layer Multi‑sig Matrix (MMM) vault powered by Safeheron; DotSwap co‑signs withdrawals.

Curve Model

CPMM (x * y = k). This is treated as a special, infinite‑range case of CLMM.

User Deposits

Anyone can deposit token pairs (e.g., BTC + Runes) to receive pool shares proportional to their contribution.

Fee Share

Earn 1.6 % of each swap routed through this pool (4 : 1 split with DotSwap’s 0.4 % service fee).

Integration

Acts as a Maker inside Nexus Engine, publishing a passive CPMM curve and co‑signing PSBTs automatically.

Workflow

  1. Deposit — User sends tokens to MMM vault; pool shares minted.

  2. Quote — Nexus Engine reads pool reserves, includes CPMM curve in routing.

  3. Swap — Engine builds PSBT, DotSwap LP auto‑signs via custodial signer.

  4. Earnings — Fees accrue to pool; share value rises.

  5. Withdraw — User burns shares, receives underlying tokens plus earned fees.

Why Custodial?

  • Ease of Use — No server to run; single‑click liquidity.

  • Gas Efficiency — Shared vault reduces per‑LP transaction overhead.

  • Bootstrap Depth — Provides baseline liquidity while Nexus LP network grows.

Note: Although custodial, MMM employs MPC and multi‑sig to mitigate single‑point risks, and all on‑chain moves remain transparent.

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