The first Bitcoin programmability extension protocol REE and its ecological application RichSwap are officially launched, opening the era of Bitcoin smart contracts

On February 8, 2025, the world's first Bitcoin programmability extension protocol REE main network developed by Omnity Network was officially launched. At the same time, the Bitcoin main network rune AMM DEX -- RichSwap built on the REE protocol is also launched. Assets can be cross-chain to realize second-level transactions on the Bitcoin main network and are completely decentralized.

This marks a revolutionary change in the Bitcoin ecosystem, that is, for the first time, the Bitcoin mainnet has obtained truly decentralized, Fully On-Chain, and Turing-complete smart contract capabilities without cross-chain.

REE (Runes Exchange Environment) coupled with the liquidity hub RichSwap will lay a solid foundation for more excellent Bitcoin ecological teams on the Bitcoin mainnet and pave the path of innovation for BTCFi.

Omnity's third-level rocket

Why did the Omnity team open up a new battlefield for innovative programmability expansion protocols on the first layer of the Bitcoin mainnet while the Bitcoin cross-chain protocol Omnity hub has achieved remarkable results?

"If the first layer of Bitcoin lacks vitality, then the second layer will only dry up. With REE, BTCFi based on the Bitcoin main network can complete the early four-year development process of Ethereum DeFi in one year.

Louis, Founder @Omnity Network ”

In fact, since the outbreak of the Bitcoin ecosystem, there have been two major bottlenecks that need to be solved, namely "transaction throughput performance" and "programmable capability".

As a leading infrastructure project in Bitcoin’s ecosystem, Omnity has formulated a “three-stage rocket” development plan very early:

1. Create a cross-chain interoperability protocol Omnity Hub: Provide BTC Layer2 with a truly decentralized, Fully On-Chain cross-chain interoperability protocol that the industry needs; Omnity hub was launched on the main network on April 20, 2024 and is currently open for source. .

"The recent hot odin.fun and multiple BTCFi teams that have not yet been officially launched have chosen to use Omnity Hub: supports cross-chain of BTC, Runes and BRC20, and connect to mainstream Layer1 such as Solana, Ton, Sui, ICP and Osmosis With more than a dozen EVM chains such as Base, it has achieved cross-chain interoperability such as etching, casting, transfer and combustion. Currently, cross-chain TVL is nearly 4 million US dollars."

2. Create a programmable extension protocol REE, which gives Bitcoin’s main network Turing complete smart contract capabilities, and is compatible with mainstream UTXO-based asset standards. REE will be open source and open for free after the audit is completed.

3. Create a REE demonstration application RichSwap, as a truly decentralized AMM DEX on the Bitcoin main network, aims to become a liquidity hub of the BTCFi ecosystem and accelerate the liquidity bootstrapping of other BTCFi applications.

REE: Turing's complete cross-chain-free Bitcoin execution layer

REE (Runes Exchange Environment) successfully combines Bitcoin's native transaction mechanism with public chain smart contracts. With the ability of smart contracts, it can support various BTCFi scenarios, and essentially becomes the general DeFi execution layer of the Bitcoin main network, a platform that can synchronize and combine various BTCFi protocols.

The essence of programmability expansion lies in DPS (decentralized PSBT

signing)

PSBT (partially signed Bitcoin transactions) is a common data standard used by the Bitcoin ecosystem for many years to coordinate multi-party transactions of Bitcoin. PSBT requires both buyers and sellers to sign the input one by one, but since the Output of the PSBT transaction has been predetermined, it is only suitable for transactions of pending orders: If you want to buy 10 runes $Dog, but only sell 100 $Dog orders, the buyer will No matter how much money you pay, you can't trade it. This greatly hinders the liquidity of BTCFi.

DPS (Decentralized PSBT Signing) is the introduction of smart contracts by REE as the user's counterparty, and builds PSBTs on demand and dynamically for transactions as needed. As the counterparty's smart contract is online at any time to match the UTXO required for transactions. Finally, the smart contract controls the private key Key to complete the signing of PSBT, providing great flexibility and is suitable for any DeFi scenario.

The key to improving transaction performance lies in the "optimistic

execution and batch settlement" strategy

The reason why RichSwap can achieve a 100-fold increase in transaction speed than Bitcoin’s main network is that the "optimistic execution and batch settlement" transaction strategy adopted by the REE execution layer.

Optimistic execution: You bought the rune $DOG in RichSwap, and the transaction was completed within 15 seconds. Although the transaction has not entered the Bitcoin block yet, REE has undergone repeated verification and can optimistically recognize that it is valid. When the user can immediately use the transaction output to initiate the next transaction, such as adding LP with the newly bought $DOG.

Bulk settlement: The second operation to add LP relies on the first purchase of $DOG transaction operation. It is a father-son transaction in the Bitcoin memepool. When the next Bitcoin block, these two transactions will be packaged together. Although Memepool accepts no more than 25 parent-son transactions, this is the settlement limit for each Pool, but not the upper limit for REE: Based on the REE-Pool model, each Exchange can manage multiple independent running Pools if More throughput is required, which can be achieved by adding new Pools.

Transactions submitted to Memepool may be cleaned out of Mempool in extreme special circumstances, and this transaction needs to be rolled back. This involves the " Exchange-Pool Model" designed by REE and the design of the State Chain structure of Pool . Interested developers can move to the " REE White Paper " and combine the upcoming open source example application RichSwap to understand its code implementation. logic.

RichSwap: Bitcoin’s first real AMM DEX on the mainnet

As the first application of the REE ecosystem, RichSwap RichSwap is a truly decentralized rune AMM DEX built on the Bitcoin main network. It can confirm transactions within 5s. The user's entire transaction life cycle is on the chain, without any off-chain dependencies, or even Zero MEV attacks were achieved.

We believe that RichSwap can be recognized by Bitcoin Native Degen, and can add liquidity pools while ensuring security, increase the circulation speed of the entire ecosystem, become a liquidity hub for BTCFi, and help more subsequent projects start faster. Liquidity.

Now, Omnity Network is building a fast, simple, low-cost, fully-on-chain BTCFi infrastructure for the Bitcoin network through three core products: Bitcoin smart contract platform REE, liquidity hub RichSwap and cross-chain protocol Omnity Hub. Injected with unprecedented vitality.

We believe that with the addition of more BTCFi developers, Bitcoin will truly become a settlement layer of the global economy and a fertile ground for digital financial innovation.