What is Bitmatrix? Bitmatrix is a constant product market maker built on Liquid Network, which utilizes the power of bitcoin opcodes to enable automated liquidity provision across L-BTC and other Liquid-based assets.
What is Liquid Network? The Liquid Network is a sidechain-based settlement network for traders and exchanges. Liquid enables faster, more confidential Bitcoin and Tether transactions and the issuance of digital assets.
What can I do with Bitmatrix? You can create your own AMM pool, add liquidity to an existing pool, or swap two assets.
What assets can I trade on Bitmatrix? As long as there’s a market for it you can trade any Liquid-based fungible asset on Bitmatrix, such as L-BTC, USDT, L-CAD, and EURx. Currently, there’s only one pool for L-BTC<>USDt.
What is the transaction capacity of Bitmatrix? A Bitmatrix pool can process up to 32 interactions per minute or 0.53 interactions per second.
How do liquidity providers make money on Bitmatrix? Users hand revenue to liquidity providers that charge a spread on each swap. Each liquidity pool may have a different LP fee strategy. For example, stablecoin to stablecoin pools such as USDt<>FUSD may have lower fees while more volatile pools like USDt<>L-BTC tend to have a higher fee tier.
What are the liquidity provider fees on Bitmatrix? The default LP fee tier is set to 0.25% for now, although it can be adjusted to as high as 1% or as low as 0.01%. Note LP fee tiers are immutable, and thus cannot be modified once a pool is deployed.
What are the other fee types for transacting Bitmatrix? Wallet fee: Users pay a transaction fee to commit to attempting smart contract execution based on the fee market conditions. Base fee: Users pay a fixed 700 satoshi base fee which is used to execute the smart contract, like a gas fee. Ordering fee: Users offer a 1 to 2147483647 sat ordering fee that determines the ordering of your transaction. The ordering fee is currently set to 1 by default on the Bitmatrix web interface.
Can Bitmatrix transactions be front-run? The initial Bitmatrix version is subject to slippage-based front running. We’re planning an alternative architecture to mitigate slippage-based front running. Liquid functionaries may also change the order of transactions to extract revenue.
Are flash loan attacks possible on Bitmatrix? No. Flash loan attacks are not possible in a Bitmatrix environment.
How long does it take to transact with Bitmatrix? A Bitmatrix interaction can take one to two minutes to finalize.
What wallet do I use to interact with Bitmatrix? You will need to have Marina Wallet installed on your browser to use Bitmatrix via the web interface.
Where can I learn more about Bitmatrix? You can check out our Medium articles, read the early preview of the design paper, or join our community channel to ask specific questions that you may have.
