Overview

We’ve already explained how the Nexus Framework works—how it manages UTXOs, tracks price curves, and builds atomic PSBTs. Now it’s time to look at the full system. The following overview shows how the Nexus Engine, Nexus Nodes, DotSwap LP, and DotSwap Server work together as part of a complete Bitcoin-based liquidity setup.

DotSwap is made up of four parts. Each one runs on its own, but they all fit together to support fast, secure swaps and market activity on Bitcoin’s base layer.

Nexus Engine

A fast, off-chain backend that tracks UTXOs from both sides of the trade, reads price data, picks the most cost-efficient route, builds a PSBT, and coordinates signatures before broadcasting the final transaction. It also stops double-spending and checks for fair fees and slippage.

Nexus Nodes

Software run by market makers or DAOs. These nodes provide price curves, check incoming trade offers, add their signatures, and update pricing after each trade—while keeping private keys offline.

DotSwap LP

A liquidity pool held in a secure vault. It uses a standard pricing formula (CPMM) to give regular users a stable place to trade. Users add token pairs, earn a 1.6% share of trading fees, and can withdraw anytime. To the Engine, it’s just another Nexus Node, though it’s run by DotSwap itself.

DotSwap Server

The public-facing part of DotSwap. It lets users connect wallets, send trade requests, check fees, and watch confirmations in real time. It also includes SDK tools so wallets and apps can connect directly.

Each part can be replaced or expanded on its own. For instance, an exchange might just use the Nexus Engine with its own UI, or a DAO might run its own Node to support its token. Together, they offer a reliable and adaptable system built entirely for Bitcoin’s security and user control.

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