On February 8, 2025, the world's first Bitcoin programmable expansion protocol REE main network launched by Omnity Network was officially launched. At the same time, the Bitcoin main network rune AMM DEX - RichSwap, built on the REE protocol. RichSwap can realize second-level transactions on the Bitcoin main network without cross-chain, and ensure complete decentralization.
This milestone event marks a revolutionary change in the Bitcoin ecosystem: the Bitcoin main network can realize truly decentralized, fully on-chain, and Turing-complete smart contract functions for the first time without cross-chain.
REE (Runes Exchange Environment) Combined with the liquidity center RichSwap, it will lay a solid foundation for more excellent Bitcoin ecosystem teams and pave the way for BTCFi innovation.
While the Omnity team has achieved remarkable achievements in the cross-chain protocol Omnity Hub, it has also opened up the innovative field of programmability expansion protocol at the main network layer of Bitcoin?
Omnity Network founder Louis explained: "If the underlying layer of Bitcoin lacks vitality, then the second layer will only shrink even more. With REE, the BTCFi project based on the Bitcoin main network can complete the progress made in the early four years of Ethereum DeFi in one year."
In fact, since its birth, the Bitcoin ecosystem has faced two bottlenecks: "transaction throughput" and "programmable capability".
As a leading infrastructure project in the Bitcoin ecosystem, Omnity has formulated a "three-stage rocket" development plan early:
Cross-chain interoperability protocol Omnity Hub: Provides a truly decentralized, fully on-chain cross-chain interoperability protocol for BTC Layer2. Omnity Hub was launched on the main website on April 20, 2024 and is currently open source. "Odin.fun, which has attracted much attention recently and many other BTCFi teams that are about to go online, have chosen Omnity Hub, which supports cross-chain of BTC, Runes and BRC20, and connects mainstream Layer1 such as Solana, Ton, Sui, ICP, Osmosis and more than a dozen EVM chains (such as Base), realizing cross-chain interoperability such as etching, casting, transfer and combustion. Currently, the total cross-chain lock value is nearly 4 million US dollars."
Programmability Extension Protocol REE: Gives Bitcoin main network Turing complete smart contract capabilities and is compatible with mainstream UTXO-based asset standards. REE will be open source after completion of audit and will be open for free.
REE demonstration application RichSwap: As a truly decentralized AMM DEX on the main website of Bitcoin, it aims to become the liquidity center of the BTCFi ecosystem and accelerate the liquidity bootstrapping of other BTCFi applications.
REE (Runes Exchange Environment) successfully integrates Bitcoin's native transaction mechanism with public chain smart contracts. The support of smart contract capabilities makes various BTCFi scenarios possible. REE essentially becomes the general DeFi execution layer of the Bitcoin main network, a platform that can synchronize and combine various BTCFi protocols.
PSBT (partially signed Bitcoin transactions) is a common data standard used by the Bitcoin ecosystem for a long time and is used to coordinate multi-party Bitcoin transactions. PSBT requires both buyers and sellers to sign and enter one by one, but since the output of the PSBT transaction is pre-determined, it is only applicable to pending orders: If you want to buy 10 runes $Dog but only 100 $Dog pending orders, you cannot trade even if the buyer bids higher. This greatly limits the liquidity of BTCFi.
DPS (Decentralized PSBT Signing) introduces smart contracts as the user's counterparty and builds PSBTs on demand and dynamically for transactions as needed. As the counterparty, the smart contract is always online, matching the UTXO required for the transaction, and finally the signing of the PSBT is completed by the smart contract control private key, providing great flexibility and suitable for any DeFi scenario.
RichSwap can increase transaction speed by 100 times, the key lies in the "optimistic execution, batch settlement" strategy adopted by the REE execution layer.
Optimistic execution: After RichSwap purchases the rune $DOG, the transaction is displayed within 15 seconds. Even if the transaction has not entered the Bitcoin block, the REE has undergone repeated verification. Optimistically, it is valid, and the user can immediately initiate the next transaction using the transaction output, such as adding liquidity using the $DOG you just purchased.
Batch settlement: The second operation to add liquidity depends on the first transaction to purchase $DOG, which belongs to the parent-child transaction in the Bitcoin memory pool and will be packaged together in the next Bitcoin block. Although the memory pool can't accept more than 25 parent-child transactions (this is the settlement upper limit for each pool), this is not the upper limit for REE: Based on the REE's Exchange-Pool model, each Exchange can manage multiple independent running pools, which can be achieved by adding new pools if greater throughput is required.
Trans submitted to the memory pool may be cleared in extreme cases and need to be rolled back. This involves the "Exchange-Pool model" designed by REE and the State Chain structure of the pool. Interested developers can refer to the REE White Paper and the upcoming open source sample application RichSwap to understand its code implementation logic.
As the first application of the REE ecosystem, RichSwap is a truly decentralized rune AMM DEX built on the main Bitcoin network. It can confirm transactions within 5 seconds. The user's entire transaction life cycle is on the chain, without any off-chain dependencies, and even realizes zero MEV attacks.
We believe that RichSwap can gain recognition from Bitcoin native Degen users. On the premise of ensuring security, it will add a liquidity pool to increase the circulation speed of the entire ecosystem, become the liquidity center of BTCFi, and help more subsequent projects start liquidity faster.
At present, Omnity Network is building a fast, convenient, low-cost and fully-operated BTCFi infrastructure through three core products: Bitcoin smart contract platform REE, liquidity center RichSwap and cross-chain protocol Omnity Hub, injecting unprecedented vitality into the Bitcoin network.
We believe that with the addition of more BTCFi developers, Bitcoin will truly become the settlement layer of the global economy and the fertile ground for digital financial innovation.
The above is the detailed content of The first Bitcoin programmability expansion protocol REE and its ecological application RichSwap is officially launched, opening the era of Bitcoin smart contracts. For more information, please follow other related articles on the PHP Chinese website!
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