Frequently Asked Questions

What is the Bitcoin DEX?

The Bitcoin DEX is a decentralized bitcoin exchange to swap Bitcoins for stablecoins (USDx). It is based on a Colored Coins protocol and non-interactive atomic swaps which allow you to swap BTC against USDx within a single bitcoin transaction, and without having to know your counter-party upfront.

The Bitcoin DEX is currently a "reckless" prototype which is live on Bitcoin mainnet and testnet. Its purpose is to demonstrate the basic protocol, and also to measure if there's demand for a decentralized bitcoin exchange. Our current goal is to see if we can build an inital community with a few enthusiastic users who want to help to grow the protocol.

What is USDx?

USDx is a stablecoin on the bitcoin blockchain. It wraps Tether coins (USDt) which are locked in the Ethereum blockchain. USDx can be redeemed for USDt by sending them back to the issuer. Currently, it just uses a trusted peg because there are only $500 locked for testing purposes. However, we are planning to implement a trustless protocol based on optimistic 2-way pegs.

You can check the locked USDt here in the address 0x7138624AB8128F2A96D726CcdaD3FDDd1A5a449b.

What is the underlying token protocol?

The USDx token is based on a custom colored coin protocol which uses client-side validation. Currently, the protocol is very basic and quite similiar to the Omni protocol. It simply encodes the tokens values in OP_RETURN outputs. We're planning to enhance our protocol, e.g., with confidential transactions similar to the RGB protocol.

Furthermore, we're investigating if it's possible to implement an algorithmic stablecoin on top of bitcoin.

You can find the source code of the current protocol here. It's basically only this file at the moment.

Where is the testnet version?

You can find the Testnet DEX here. You can get testnet BTC from this faucet to buy testnet USDx on the Testnet DEX.

Can I use USDx on Lightning?

Our very first goal is to see if there is actually demand for a DEX and a stablecoin on bitcoin. If it is possible to grow enough liquidity then there's also lots of potential in using USDx on top of the lightning network for dollar payments that settle instantly.

What is a WarpWallet?

WarpWallet is a deterministic bitcoin address generator. The original WarpWallet (created by allows you to derive your bitcoin seed from your email address and a password. It uses a hard key derivation function (and the email as salt) to make bruteforce attacks expensive.

Your email is used only locally on your machine to generate your keys. No personal information is ever to any server.

The Bitcoin DEX uses an enhanced WarpWallet protocol. Instead of Scrypt it uses the Argon2d hash function which is even harder. Additonally, your seed is encrypted and stored in your browser which keeps the wait time low after the first "login".

For more details check out the source code.

How can I ask more questions?

Feel free to ask questions in the Bitcoin DEX Telegram channel, on Twitter, or on Github.

How can I sign up?

Click here to create an account.