Open DotSwap

Nexus Framework

Concept

Nexus is DotSwap’s coordination layer composed of two complementary parts:

Component
Operated by
Purpose

Nexus Engine

DotSwap Core

Aggregates curves, builds & routes PSBTs, manages UTXO state

Nexus Node

Self‑hosted Maker

Publishes liquidity curves, signs PSBTs, updates positions

Together they deliver a fully non‑custodial, multi‑maker liquidity network on Bitcoin Layer 1.

Nexus Engine – Key Duties

  1. UTXO Management — tracks Maker & Taker inputs, prevents double‑spend.

  2. Block Sync — monitors mempool/blocks, updates transaction status.

  3. Curve Aggregation — pulls CPMM/CLMM curves from Nexus Nodes & DotSwap LP.

  4. PSBT Construction — selects best route, assembles multi‑maker PSBT.

  5. Signature Orchestration — dispatches PSBT to each signer and finalises broadcast.

Nexus Node – Maker Workflow

  1. Publish Curves → POST pricing (CPMM / CLMM) to Engine.

  2. Receive PSBT → verify it matches intent & risk limits.

  3. Partial Sign → add signature, return to Engine.

  4. Update State → adjust curve/UTXO set after trade confirmation.

Liquidity never leaves the Maker’s wallet until its signature is applied.

Interaction Flow

sequenceDiagram
  participant Taker
  participant Engine
  participant NodeA
  participant NodeB
  Taker->>Engine: Swap intent (amount, slippage)
  Engine->>NodeA: Quote request
  Engine->>NodeB: Quote request
  NodeA-->>Engine: Curve data
  NodeB-->>Engine: Curve data
  Engine->>Engine: Build optimal PSBT
  Engine-->>NodeA: PSBT for partial sign
  NodeA-->>Engine: Sig A
  Engine-->>Taker: PSBT with Sig A
  Taker-->>Engine: Sig B (final)
  Engine->>BTCNet: Broadcast

Advantages

  • Self‑Custody — funds stay in Maker wallets; Takers keep keys.

  • Scalable Liquidity — any number of Nodes can plug in.

  • Deterministic Settlement — enforced by Bitcoin consensus.

  • Composable — wallets or dApps can act as Takers via simple intent API.

DotSwap LP is just one Nexus Node run by DotSwap with a custodial vault, offering CPMM liquidity for passive users.

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