- Pact swap has launched its production version, enabling bridgeless cross-chain swaps of native assets.
- The platform claims its users can enjoy costs up to 95% lower than those of competing cross-chain DEXs.
- Pact Swap’s cost cuts come from cutting out middlemen like bridge relayers and custom validators.
Pact Swap has launched its production version, enabling bridgeless cross-chain swaps of native assets on main blockchains.
The platform claims its users can enjoy costs up to 95% lower than those of competing cross-chain DEXs.
The transition comes after a period of live testing, during which Pact Swap executed thousands of swaps involving Bitcoin, Ethereum, BNB Chain, Tron, Litecoin, Dogecoin, and Polygon, amongst others.
Even valuable on single-chain routes, the platform’s order-book model offers up to 45% more cost efficiency than similar systems.
Reducing costs through protocol design
Pact Swap’s cost cuts come from cutting out middlemen like bridge relayers and custom validators.
Without wrapping assets, the system can perform swaps natively, thereby guaranteeing breaking changes in operational overhead.
PACT’s framework makes use of Coinweb’s reactive smart contracts, which verify cross-chain transactions based on the consensus from the origin chain and destination chain.
This allows swaps to be made with no reliance on intermediary counterparties, whilst providing secure deterministic execution and tight collateralization.
Every trade is based on a 2x overcollateralization system, which automatically pays the counterparty in the case that deliveries fail.
Simplified architecture is less complex and more stable, all while enabling decentralized exchange (DEX) composability and permissionless listings.
Bridgeless Bitcoin operation and modular settlement
Pact Swap is a cross-chain DEX that carries out on-chain cross-chain payments between Bitcoin and EVM-compatible blockchains without relying on synthetic or wrapped assets.
This also preserves on-chain verification guarantees while allowing improved and seamless cross-ecosystem interoperability.
In order to solve the universal problems of not enough collateral capacity, congestion on Layer 1 and etc., Pact Swap introduces a modular settlement form.
Such use cases are: peer-to-peer dust-lock UTXOs, multi-signature Bitcoin vaults, Lightning Network payments, decentralized exchange integrations, and NFT-based settlements.
The elasticity serves to expand liquidity sources while reducing fragmentation across networks.
Positioning among cross-chain DEXs
Pact Swap is jumping into a crowded field of competitors that also includes THORChain and Chainflip, which powered the initial craze among these native Bitcoin swaps.
However, their validator-centric models also bring extra cost and operational overheads with lower TPS.
But Pact Swap’s implementation will be bridgeless and allow for native BTC swaps with a collateral system that is designed to provide high-security procedures with minimal capital costs.
The recent integrations of Dogecoin and Polygon bring the total supported networks to seven, as Solana and Base are expected to join soon.
Permissionless listings of assets on these chains and beyond let teams spin up pairs without approval, while anyone can add liquidity.
Targeted liquidity then concentrates depth on busier routes, reducing slippage and tightening spreads
Integration and market outlook
Pact Swap is integrating with top DEX aggregators so that wallets and trading interfaces can route transactions through native BTC paths by default.
The integrations should also result in increased exposure and use as order flow from the current decentralized ecosystems is directed toward its on-chain, cross-chain solutions.
Assuming that economics and performance at present levels persist, Pact Swap may become a veritable alternative to extant cross-chain infrastructure as a grafting point for low-cost, composable swaps with native asset support.
