Bitflow and Pontis Unveil Bitcoin Runes AMM for Stacks L2 Trading

Bitflow and Pontis are excited to unveil the first Bitcoin Runes Automated Market Maker (AMM) on Stacks, the leading Bitcoin Layer 2 (L2).

This breakthrough provides a long-awaited scaling solution for Runes—Bitcoin-based tokens previously limited by slow transactions, high fees, UTXO pre-splitting, marketplace listings, and transaction sniping.

Bitflow offers fast, affordable transactions with a user-friendly interface after the Stacks Nakamoto Upgrade. Its liquidity pools provide AMM-based pricing for any trade amount instead of marketplace listings. 

Dylan Floyd, Co-Founder of Bitflow, said, “Some people haven’t realized this yet, but Bitcoin is fun again. Our Runes AMM gives everyone in crypto more reasons to transact on Bitcoin, which is great for the sustainability of network fees. Together with Pontis, we make it easy for that liquidity to flow across novel swap and earn products.”

“At Pontis, our mission is to create a secure and seamless bridging experience for Runes and other metaprotocol assets by harnessing a consortium of trusted projects as node operators,” stated Filip S, Core Contributor at Pontis.

He also added that through the partnership, Pontis is improving the experience for BTC traders, allowing them to easily interact with Runes via liquidity pools on Stacks. This is a key milestone in driving the adoption of Runes and shaping the future of Bitcoin’s evolution.

The signers are Asigna, Xverse, Leather, Liquidium, DeSpread, OrdinalsBot, Pontis, Bitflow, Hermetica, Ducat, Bima, StackingDAO, Zest Protocol, Sats Ventures, and Billy (BILLION•DOLLAR•CAT). 

The Runes AMM on Stacks uses a Uniswap-style liquidity pool, providing deep liquidity, low slippage, and quick price discovery for Bitcoin assets. With the Nakamoto upgrade, fast block times and reorg protections allow Stacks to be abstracted from the user experience, enabling Bitflow to offer a Layer-1 Bitcoin DEX with Stacks handling execution.

Jan Smejkal, Chief Strategy Officer at Xverse, expressed his excitement by stating that the Bitflow team is constantly advancing Bitcoin token trading and working with them to enhance the Runes trading experience using both L1 and Stacks.

The Runes AMM launched on 12/17/2024, alongside sBTC. With the Pontis Bridge integrated into the Bitflow app, users can bring BTC and Runes to the Stacks layer and trade at Nakamoto speed. At launch, swaps between native BTC and STX are available, and the sBTC-Runes liquidity pools will offer an extra 5% BTC yield on sBTC deposits.

At launch, liquidity pools will support a variety of popular Runes, including BILLION•DOLLAR•CAT, DOG•GO•TO•THE•MOON, LIQUIDIUM•TOKEN, BASED•INTERNET•PANDA, SHORT•THE•DOLLAR, PUPS•WORLD•PEACE, POOKA•CANNOT•BE•STOPPED, ROOOOOOOOOONS, and USDh—the first Bitcoin-backed synthetic dollar on Runes.

Plans are in place for further expansion to BRC-20 tokens and native BTC assets, such as $ORDI, $TRIO, and more, depending on community demand.

To ensure security and reliability, Bitflow undergoes regular audits by top Bitcoin L2 auditing firms, including Coinfabrik, StrataLabs, and Clarity Alliance, which has also audited Stacks Core and sBTC. Additionally, Bitflow engages the community with a $100,000 bounty program on Immunefi.

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