Runes Protocol unveils ‘agents’ to enhance Bitcoin DeFi with native AMM capabilities

The Runes Protocol, a Bitcoin-based fungible token standard, has unveiled a large upgrade introducing “agents” to alteration Automated Market Makers (AMMs) straight connected Bitcoin’s (BTC) Layer 1.

This improvement aims to heighten decentralized trading capabilities portion maintaining Bitcoin’s information and trustless nature.

Casey Rodarmor, the creator of Runes, announced the upgrade connected March 20. The agents utilize an “interactive transaction construction” mechanics to let marketplace makers to adhd liquidity to Runes AMMs successful a trustless manner.

The diagnostic is designed to tackle inefficiencies successful Bitcoin-based token trading, specified arsenic “batch splitting” and “mempool front-running,” which person antecedently hindered seamless on-chain trading.

Enhancing Bitcoin’s DeFi Landscape

The Runes Protocol was primitively developed to present fungible tokens connected Bitcoin utilizing its Unspent Transaction Output (UTXO) model.

Unlike BRC-20, which relies connected Ordinals inscriptions and tin pb to inefficient transaction batching, Runes aims to amended token ratio portion integrating natively with Bitcoin’s existing architecture.

The latest “agents” upgrade further expands Runes’ capabilities by enabling AMMs, a captious constituent successful DeFi. AMMs facilitate token swaps without relying connected accepted bid books by utilizing liquidity pools wherever traders tin speech assets successful an automated mode instead.

According to Rodarmor:

“With this upgrade, Runes AMMs volition let marketplace makers to adhd liquidity seamlessly and trustlessly, solving cardinal issues successful decentralized trading connected Bitcoin.”

Solving cardinal trading challenges

Before this development, Bitcoin-native AMMs were mostly constricted to L2 solutions similar Stacks, wherever projects specified arsenic Bitflow and Pontis launched AMMs to code Bitcoin’s transaction velocity and outgo limitations.

The instauration of agents connected the main Bitcoin web aims to bring akin functionality to the basal concatenation portion leveraging its industry-defining information and decentralization.

Market makers providing liquidity to Runes AMMs volition payment from reduced risks associated with centralized market-making solutions, arsenic the interactive transaction operation method ensures trustless and transparent liquidity provisioning.

Additionally, the instauration of agents helps mitigate issues similar front-running, wherever malicious actors exploit mempool visibility to manipulate commercialized execution. By improving transaction integrity, Runes AMMs could marque decentralized trading much businesslike and secure.

While the motorboat day for Runes AMM agents has yet to beryllium confirmed, the upgrade represents a important milestone successful expanding Bitcoin’s on-chain fiscal infrastructure.

The station Runes Protocol unveils ‘agents’ to heighten Bitcoin DeFi with autochthonal AMM capabilities appeared archetypal connected CryptoSlate.