May has been a month of meme coins, leading to a significant increase in BRC-20 tokens within the Bitcoin ecosystem.
The market cap of BRC-20 tokens has skyrocketed in the past month. According to the latest data from brc-20.io, there are now 24,677 BRC-20 tokens in circulation, with a combined market value of $447,230,599. Trading volume in the last 24 hours alone exceeded $200 million.
While the explosion of BRC-20 tokens has undoubtedly driven activity and increased value within the BTC network, it has come at a steep cost. Longer block generation times, higher gas fees, and severe on-chain congestion have become major issues. On May 7, Binance was forced to suspend Bitcoin withdrawal service twice in one day due to the massive transaction volume and a surge in processing fees. The following day, the Bitcoin network stopped producing blocks for an hour due to congestion, causing gas fees for each transaction on the chain to reach a record high of $30 since May 2021.
The surge in blockchain activity extends beyond the Bitcoin network.
On May 2, the Litecoin community launched LTC-20, a forked version of the BRC-20 standard built on the Litecoin Ordinals protocol. The entry threshold for LTC-20 is incredibly low, requiring just a few dollars to participate.
On May 4, OrcDAO introduced ORC-20, an upgraded version of BRC-20 designed to enhance the functionality of ordered tokens on the Bitcoin network. A week after ORC-20's launch, 420 related tokens were released.
Furthermore, on May 9, the Dogecoin community unveiled the DRC-20 standard, nearly identical to BRC-20, resulting in a surge in Dogecoin transactions.
The arrival of BRC-20, LTC-20, ORC-20, and DRC-20 has introduced new narratives to the crypto market and generated fresh demand. The challenge now lies in making the trading of these tokens more convenient and seamless for users. Decentralized exchange BikrSwap aims to address this issue.
BikrSwap: Building an Integrated BRC-20/LTC-20/ORC-20/DRC-20 Ecosystem
BikrSwap is a decentralized exchange (DEX) built on the Ordinal protocol, specializing in providing liquidity and facilitating real-time transactions within the BRC-20, LTC-20, ORC-20, and DRC-20 ecosystems.
The primary distinction between BikrSwap and other DEXs is its comprehensive and seamless integration with the BRC-20, LTC-20, DRC-20, and ORC-20 standards, as well as the Ordinals protocol. The platform's mechanism is straightforward: users can add liquidity, swap tokens, and remove liquidity. Additionally, BikrSwap plans to launch Staking function on July 6.
Improving BRC-20/LTC-20/ORC-20/DRC-20 Liquidity with BikrSwap
Liquidity is essential for any financial product. In essence, liquidity enables assets to transition between different states quickly and without significant losses.
Many decentralized exchanges face the challenge of insufficient liquidity, which can hinder users from trading tokens at fair prices and result in high slippage rates.
BikrSwap addresses this issue by offering a liquidity pool for LP transactions and enabling real-time transactions. The platform employs the AMM (Automated Market Maker) model, allowing users to supply liquidity and earn rewards. When a user trades tokens such as BRC-20 on BikrSwap, the platform automatically calculates the token's price based on the available liquidity in the pool. This eliminates the need for order books and reduces the risk of price manipulation. Users must pay a small fee when trading tokens and a portion of this fee is paid to liquidity providers as rewards.
To further enhance the user experience and enable diversified use of BTC assets, BikrSwap also plans to incorporate the BTC network into the LP model, reducing the complexity of token transactions.
The platform features a user-friendly interface, allowing users to effortlessly add and remove tokens from the liquidity pool.
BikrSwap is set to launch a beta version supporting BRC-20 tokens on June 5, followed by subsequent releases for LTC-20, ORC-20, and DRC-20 tokens in the beta version.
$BIKR, the native token of BikrSwap, serves multiple purposes within the ecosystem, including liquidity rewards, staking rewards, and governance rights.
As a utility token, $BIKR can be used to pay transaction fees on the platform. Users holding BIKR tokens can access advanced features, participate in exclusive token sales, and join various activities. To encourage more users to contribute liquidity, the platform will provide $BIKR tokens as rewards for those participating in the AMM system. Additionally, token holders can earn passive income through staking tokens and receive extra rewards. Finally, $BIKR token holders have governance rights on the platform, allowing them to vote on proposals related to development, iteration, and future growth, and directly contribute to the BikrSwap ecosystem.
The total supply of $BIKR tokens is 1 billion, distributed as follows:
- Public IDO (Initial Dex Offering): 20%, or 200 million BIKR tokens
- CEX Reserve: 10%, or 100 million BIKR tokens
- Mining: 30%, or 300 million BIKR tokens
- Public IDO airdrop: 30%, or 300 million BIKR tokens
- Public beta airdrop: 10%, or 100 million BIKR tokens
On May 27th, BikrSwap will launch the first round of its public IDO, raising funds by selling native $BIKR tokens.
The IDO will last for three days, with a total issuance of 3.5 BTC and a price of 1 BIKR = 0.000000425 BTC. Any excess funds will be refunded to participants. Those who join the IDO will have the opportunity to receive official airdrops. BikrSwap plans to initiate the first round of airdrops on July 20 for IDO participants and DEX beta users.