Trustless Market Deploys Uniswap Contracts on Bitcoin as BRC20-Based SHIB and PEPE Gain Popularity

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A group of developers deployed Uniswaps smart contracts on the Bitcoin network to capitalize on the rise of BRC-20 tokens and grow the decentralized finance (DeFi) ecosystem.

Called Trustless Market, the protocol has racked up daily volumes of $500,000, attracted over 2,000 users, and allows liquidity providers to earn a 2% discount on all swaps performed on the network.

Although most of these tokens are meme coins, instead of tokens that can be used in a sophisticated Bitcoin-based DeFi application, it still counts as a start.

We want to make Bitcoin as widespread as possible usable for much more than just currency, said @punk3700, one of Trustless Market’s developers, in a Twitter post. We started with art first, then AI, and DeFi is the next natural area to add.

It’s still super early. Looks like Uniswap in 2018. But it’s fun, said @punk3700.

DeFi relies on automated smart contracts to provide financial services, such as lending and borrowing, to users. Nearly $47 billion worth of tokens are locked to such protocols, according to data from DefiLlama.

The use of Bitcoins in DeFi applications has until now been limited to token representations of Bitcoin on other chains, such as Ethereum or Solana. However, the recent introduction of the Bitcoin Recent for Comment token standards allows developers to issue DeFi tokens and applications natively on Bitcoin, which has spurred a collection of digital artwork and meme tokens built on Bitcoin. these last weeks.

Data from OrdSpace, which tracks BRC-20 data, shows more than 11,000 tokens issued on Bitcoin are available on the open market as of Monday with a cumulative market capitalization of $500 million, up from 1.5 billion earlier this week.

So far, Ordinals Ordi (ORDI) market tokens are the most popular BRC-20 tokens with a market capitalization of $400 million and 8,300 unique ordi token holders. Ordi would be the first BRC-20 token deployed on Bitcoin, which could also contribute to its value proposition among holders.

Pepe (PEPE) tokens on Bitcoin different from those issued on Ethereum are the third largest BRC-20 issue, albeit with a relatively smaller market capitalization of $17 million. There is also a Bitcoin-specific shiba inu (SHIB) iteration with a capitalization of $3.7 million, a tiny bit compared to the original SHIB on Ethereum, which has a market capitalization of $5.5 billion.

As such, Trustless Market is one of the few protocols in a growing cohort that seeks to grow the Bitcoin ecosystem, a move that has driven transaction fees up.

Bitcoin users paid more than $17.42 million in fees in the past 24 hours, marking the second-highest day on record for gasoline fees, analytics tool DefiLlama tweeted Thursday.

But the likes of @punk3700 say the fee issue is a stepping stone to fueling long-term adoption.

I think that’s a good problem to have actually! @punk3700 said. Always think that use cases/utilities are going to come first. The infrastructure upgrade will then follow.

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