Bitcoin’s “runes” like Memecoin will be boosted by the launch of AMM in stacks

Crypto giants have a new – and, if all goes according to plan, faster, cheaper and safer – way to trade Runes, the Bitcoin ecosystem’s answer to memecoins.

An automated market maker (AMM) for the Runes protocol is being deployed on Stacks. This is the first AMM for such tokens in the Bitcoin layer-2 network. AMM went live on Wednesday, following the unveiling of Stacks’ BTC-backed asset sBTC on Tuesday.

The teams behind decentralized exchange (DEX) Bitflow Finance and Bitcoin bridge Pontis have developed an AMM tool that facilitates trading using algorithmic means to improve liquidity. They announced the project on Wednesday.

The Runes protocol is a standard for issuing fungible tokens in Bitcoin, based on the work of Ordinals, which allows data to be written into small denominations of BTC, thus making each one unique and potentially valuable. Ordinals can be viewed as a means of creating the Bitcoin equivalent of NFTs. Runes can be seen as a place to generate memecoins.

Runes was launched in April, coinciding with the event in the fourth half of Bitcoin, and encouraged increased activity78.6 BTC ($8.18 million) paying fees 90 minutes after halving.

But after less than a month, it’s excitement significantly weakenedFees will be reduced by more than 50%.

Bitflow’s goal is to help its AMM scale Runes and overcome some of the drawbacks holding it back, such as slow transaction speeds, high fees, and a snapshot of pending transactions. Sniping is when users take advantage of the backlog of time a transaction is waiting to be added to a Bitcoin block, remove them from the waiting room, and then re-add them with their own signature and a higher fee.

Using Nakamoto’s update of Bitflow Stacks. Stacks is one of several layer-2s that use bitcoin as a base layer to implement smart contracts and other decentralized finance-related functions.

Stacks Nakamoto launched the update in October. It is designed for Significantly speed up transaction times by decoupling the L2 block production schedule From Bitcoins.

“Another key feature that Nakamoto discovered is that Bitcoin is final,” Bitflow said. “Once a transaction is confirmed, reversing it is at least as difficult as reversing a bitcoin transaction.”

Bitflow is using the Bitcoin Bridge Pontis to allow trading between BTC and Runes. Each trade is recorded in one Bitcoin block, which typically takes 10 minutes, and one Stacks block, which takes five to 10 seconds.

Read more: Bitcoin ‘Four Meggers’: OrdinalsBot Recorded Largest File on OG Blockchain