LNSwap is an atomic swap protocol that speaks to the very foundations of Bitcoin and the security, decentralization, and stability that it provides. Every user should have full transparency and control over their flow of funds, especially given that current centralized financial systems pose big security risks for users.
We’re part of the Trust Machines product family, and our dedication to providing quick, secure swaps also exemplifies the work being done to unlock the true potential of the Bitcoin blockchain.
Lnswap is made up of three parties: users, liquidity providers, and aggregators.
Users are those looking to swap assets. Their funds are locked into a very basic hash time-locked contract (HTLC) only for the duration of the swap which – through the use of smart contracts – enables a direct transaction between two parties without third party involvement. In short, our users experience a truly trustless transaction where they retain full control over their funds.
Liquidity providers are those who provide funds to the LNSwap protocol with assets that they own to facilitate swaps on our exchange. In return for providing their assets, liquidity providers are rewarded with fees that are generated by swaps that happen on the platform.
Aggregators essentially gather data and information on swaps happening on the protocol and consolidate them for ease of reference and access. Currently, LNSwap’s aggregator is a router that is used to forward swap information between users and liquidity providers. But in the future, our aggregator will actually be an on-chain contract, which effectively means that anyone can become an aggregator for the platform with a simple frontend. Additionally, liquidity providers will be able to register to multiple aggregators.
The future of LNSwap
The LNSwap team is also currently working towards a roadmap that involves adding additional Bitcoin layer functions to preserve the security and integrity of transactions on our exchange.
We’re actively working to integrate the latest improvements to Bitcoin and Lightning Network – like Taproot and Taro.
On the Stacks side, we’re excited and working towards supporting Stacks 2.1 update, followed by subnets and our plan is to be ready for the launch of Stacks Nakamoto Release.
Excited about LNSwap and hoping to join our team?
Take a look at our openings on the Trust Machines careers page.