Here we explain what UTXOs are and how to manage it. What are UTXOs

• A UTXO is the amount of digital currency remaining after a blockchain transaction is executed.

• Transaction Creation: When a transaction is made, it consumes one or more UTXOs as inputs and creates new UTXO**s as outputs

• When you send Bitcoin, several steps programmatically take place. One of the earliest steps in the transaction process is for your cryptocurrency wallet to scan the blockchain for the amount of funds you have. These funds are known as unspent transaction outputs (UTXOs).

• The funds are considered “unspent” because they are freely available for you to send to someone or move to another wallet.

• They are called “transaction outputs” because they were created from previous transactions.

• UTXOs are processed continuously and are responsible for beginning and ending each transaction.

• When a transaction is completed, any unspent outputs are deposited back into a database as inputs, which can be used at a later date for a new transaction.

• Example:

You can think of UTXOs as loose change leftover from previous Bitcoin transactions.

• If you spend $12 on lunch using a $20 bill, you’d have $8 leftover. In this example, the leftover $8 would be an unspent transaction output. It would be generated as an entirely new “$8 bill” UTXO and go back to your wallet, ready to be used to buy something else.

• Just as you can’t physically give a shopkeeper a $5 bill and then give the same $5 bill to someone else, a Bitcoin user cannot successfully use the same unspent transaction output in two separate blockchain transactions.

• In this way Bitcoin solves the double-spending problem. The other widely used concept of wallet balance tracking is called Account/Balance model. It’s being used by EVM chains like Ethereum, EOS, Tezos etc.

Managing UTXOs For some transactions, such as bulk minting Runes or sending multiple transaction in one block, you would need to have your BTC divided in lesser or bigger UTXO pieces. To adjust them to the size needed, you would either have to split or consolidate your UTXOs.

• Split:

To split UTXOs you would need to use third-party services. As for now, the best options are:

1. https://luminex.io/runes/split-utxos

2. https://magisat.io/isolate

3. https://ordinalswallet.com/wallet

How many sats per UTXO are optimal for bulk Runes mints? Here you will need to estimate how much a mint will cost. At times of low mempool occupancy, the gas fee rate ranges at about 25-35 sats/vB. Therefore, for optimal speed and in order to not get front ran, you’d like to set the gas fee slightly (~5 sats) above the current average rate. An absolute minimum per UTXO would be 50,000 sats = 0.0005 BTC ($35 if BTC=$70k). This would be enough to cover up to 10 mints per UTXO in separate blocks (at low fee rates). In the best scenario, you’d have a mint strategy that involves different sized UTXOs. If your BTC is split in larger UTXOs, you’ll be able to mint during the high network fees.

BTC=$70k

• 1,000,000 sats = 0.01 BTC ($700)

• 500,000 sats = 0.005 BTC ($350)

• 400,000 sats = 0.004 BTC ($280)

• 300,000 sats = 0.003 BTC ($210)

• 200,000 sats = 0.002 BTC ($140)

• 100,000 sats = 0.001 BTC ($70)

• 50,000 sats = 0.0005 BTC ($35)

Consolidation:

You can consolidate UTXOs by sending them to the wallet, where you'd like to get 1 consolidated UTXO. You can as well consolidate within the wallet. To do so, just enter the address you're sending from as a receiver address.

RUNES DEX is the first decentralized AMM on the Bitcoin Blockchain for Runes, Ordinals & BRC-20.

Unlike traditional exchanges that rely on order books to match buyers and sellers, RunesDeX facilitates trades directly against the liquidity pool, providing a decentralized and permissionless trading experience.

Welcome to Runes Dex docs! This book is intended for any audience looking to our main product:

• Exchange

• Explore

Runes Dex - implements the functionality of an automated market maker (AMM).

The Runes Dex Exchange have a several features for decentralized Runes trading:

• What is AMM

• Slippage

• Price Impact

• Impermanent Loss

• Liquidity Pools

• Swaps

Following this, we would suggest utilising the quick guide on Runes Dex.

• How to Trade

Runes Dex is an Automated Market Maker (AMM), and the exchange is the central component of Runes Dex.

The protocol is operational on Bitcoin Runes, providing safe and decentralised trading opportunities on the Bitcoin mainnet.

The Runes Dex Exchange main features:

Swap/Trade

Runes Dex enables users to trade directly from their own wallets, circumventing the necessity for a CEX. This ensures the retention of complete control over one's assets, obviating the need to entrust them to a third party.

Liquidity Pools

Token exchanges on Runes Dex are only possible when there is sufficient liquidity for those tokens. Without adequate liquidity, trading can be difficult, expensive or impossible.

Adopting new software can be challenging. To help you familiarize yourself with RunesDEX, we have developed a series of user guides:

• Create Wallet

• Get BTC

• What is Bitcoin Taproot Address

• What is UTXO

• What is Bitcoin Runes

Runes Dex Token:

• RUNES•NETWORK

The Auto Market Maker (AMM) is the core of pool models and liquidity pools, instead of using the Oracle price, AMMs determine the prices by the algorithm.

Users can provide liquidity to RunesDeX by depositing an equivalent value of BTC and Runes tokens into a pool.

Add Liquidity:

The addLiquidity function allows users to add liquidity to a RunesDeX pool, contributing both BTC and Runes tokens.

As a user, you deposit an equivalent value of BTC and Runes tokens into the liquidity pool. This helps maintain the balance in the pool, ensuring that trades can occur smoothly.

When you add liquidity, you will receive pool tokens representing your position. These tokens automatically earn fees proportional to your share of the pool, and can be redeemed at any time. By adding liquidity you'll earn 0.25% of all trades on this pair proportional to your share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity.

Remove Liquidity:

The removeLiquidity function allows users to withdraw their liquidity from the pool by redeeming their LP tokens for the underlying BTC and Runes tokens.

1. Calculate Withdrawal Amounts:

• The amount of BTC and Runes tokens you receive is based on your share of the pool. The pool calculates your proportionate share and returns the corresponding amounts of BTC and Runes tokens to you.

1. Receive BTC and Runes Tokens:

• The calculated amounts of BTC and Runes tokens are transferred from the pool back to your wallet, completing the withdrawal process.

Removing pool tokens converts your position back into underlying tokens at the current rate, proportional to your share of the pool. Accrued fees are included in the amounts you receive.

Liquidity Provider Fees:

Liquidity providers earn a 0.25% fee on each trade proportional to their share in the pool.

Fee Transfer to the Pool (Not Less Than Dust BTC)

A portion of the transaction fee is transferred to the liquidity pool. This fee, which is not less than the dust BTC amount, compensates the liquidity providers for their participation and risk in the pool. This fee helps maintain the pool's operation and incentivizes liquidity provision.

Runes Dex Fees:

Runes DeX earns 0.25% fee on each transaction to the treasury.

Fee Transfer to the Treasury (Not Less Than Dust BTC)

Another portion of the transaction fee is directed to the RunesDeX treasury. This fee, also not less than the dust BTC amount, supports the maintenance and development of the RunesDeX platform, ensuring its sustainability and growth.

Users can swap between BTC and Runes tokens available in the RunesDeX liquidity pools. The swap price is determined by the ratio of the tokens in the pool, adjusted according to the constant product formula.

Swap transaction explanation:

1. User's Runes with Dust BTC or BTC Transfer to Swap

The user initiates the SWAP by transferring their Runes tokens along with a small amount of BTC (dust BTC) or BTC directly to the swap contract. This step includes the user's intention to exchange Runes tokens for BTC or vice versa.

2. Fee Transfer to the Pool (Not Less Than Dust BTC)

A portion of the transaction fee is transferred to the liquidity pool. This fee, which is not less than the dust BTC amount, compensates the liquidity providers for their participation and risk in the pool. This fee helps maintain the pool's operation and incentivizes liquidity provision.

3. Fee Transfer to the Treasury (Not Less Than Dust BTC)

Another portion of the transaction fee is directed to the RunesDeX treasury. This fee, also not less than the dust BTC amount, supports the maintenance and development of the RunesDeX platform, ensuring its sustainability and growth.

4. Pool's Runes with Dust BTC or BTC Transfer to Swap

The liquidity pool responds by transferring the corresponding amount of Runes tokens with dust BTC or BTC to the user’s wallet. This step completes the exchange process, ensuring the user receives the desired tokens as per the swap rate.

5. Transfer Back the User's Unused BTC from Input UTXOs

If the user initially transfers more BTC than is required for the swap, the unused BTC is returned to the user's wallet. This step ensures that only the necessary amount of BTC is used for the transaction, and any excess BTC is safely returned.

6. Transfer Back the Pool's or User's (Based on Sender) Unused Runes

Similarly, if the liquidity pool or user transferred more Runes tokens than required for the swap, the unused Runes tokens are returned to the respective sender. This step ensures efficient use of the tokens and avoids any excess transfer.

AMMs use liquidity pools, where users can deposit cryptocurrencies to provide liquidity. These pools then use algorithms to set token prices based on the ratio of assets in the pool. When a user wants to trade, they swap one token for another directly through the AMM, with prices determined by the pool's algorithm.

Automated Market Maker (AMM) Model

Constant Product Formula:

RunesDeX utilizes a simple mathematical formula:

x * y = k

Where x represents the quantity of BTC, and y represents the quantity of Runes tokens in a liquidity pool, with k being a constant. This formula ensures that the product of the token quantities remains constant during trades.

No Order Book:

Unlike traditional exchanges that rely on order books to match buyers and sellers, RunesDeX facilitates trades directly against the liquidity pool, providing a decentralized and permissionless trading experience.

Slippage

Slippage occurs when the actual price you get for a trade is different from the expected or quoted price. It often happens in situations of high market volatility or low liquidity. If you want to buy or sell an asset at a specific price, but the market conditions change before your trade is executed, you might end up with a slightly different price than you anticipated. Slippage can result in a higher or lower cost for your trade than you initially planned.

Impermanent loss

Impermanent loss is a term used in liquidity provision. When you provide liquidity to a pool by depositing two different assets, the value of your assets can change over time due to price fluctuations. Impermanent loss occurs when the value of your assets in the pool is less than if you had simply held those assets without providing liquidity. It's "impermanent" because the loss can decrease or disappear as the prices of the assets change.

Detailed about impermanent loss

Price impact

Price impact refers to the effect a large trade has on the price of an asset in a market. When someone buys or sells a significant amount of an asset, it can cause the price to move in the direction of the trade due to the imbalance in supply and demand. The larger the trade relative to the overall liquidity in the market, the greater the price impact. Price impact can lead to higher or lower prices depending on whether it's a buy or sell order.

A Bitcoin Taproot address is a relatively new kind of Bitcoin address. Also known as Pay-to-Taproot (P2TR) addresses, it leverages the Taproot protocol to provide a more efficient mechanism for transacting with Bitcoin.

• Taproot is the latest Bitcoin address format designed to enhance privacy, scalability, and scripting capabilities. Addresses in this format start with "bc1p."

• Taproot allows the aggregation of multiple signatures, making complex transactions more efficient and cost-effective.

• Taproot has enabled new smart contract functionalities on Bitcoin, paving the way for the emergence of Ordinals and Bitcoin-native tokens like BRC-20 and Runes.

Example Taproot Address: bc1pavlmkapyn630588yvykxuhhwgzke7d7h0lcgca8a9uczcrct8elq7aqmt8

Learn what Bitcoin Taproot addresses are, how they work, and what you can do with them in this beginner’s guide.

Runes Dex Have a user friendly interface so swaps can be easy compared for any users.

Before started you should install wallet compatible with BTC and Runes protocols. You can learn how to get it .

Let's start trading:

1. Go to the Runes Dex .

2. Connect your wallet.

1. Choose the token you want to trade from the dropdown menu in the upper section. Whichever token you choose, you will need to make sure you have a sufficient amount of them in your wallet to trade with.

1. Next, either type an amount in the upper section to input the number of tokens you want to swap (spending amount). Or, type an amount in the lower section to input the number of tokens you want to swap to (receiving amount).

1. Check all the details, and click the Confirm button.

1. Then Confirm transaction in your wallet.

Coming soon....

First, go to the Explorer page and select the Pools tab.

Click on your pool for detailed information

Explore the pool in the detail:

The following information is available:

1. Total Value Locked - TVL

2. Fully Diluted Value - FDV

3. Market Capitalization - Market Cap/MCAP

4. Time Frame

5. Swap Module

What are Runes and BRC-20 tokens?

Runes: Runes is the new protocol on top of Bitcoin, which enables the users to inscribe certain values to the fractions of Bitcoin (sats), and in this way, create the ERC-20-like experience for creating, trading and managing Bitcoin native assets. In simple words, Runes are “kind of” the fungible tokens on the Bitcoin Blockchain. BRC-20 tokens: An older token experimental standard, demonstrating that you can create off-chain balance states with inscriptions on Bitcoin. Likely to be replaced by Runes. What is RUNES DEX?

RUNES DEX has been building the first decentralized AMM on the Bitcoin Blockchain for Runes, Ordinals & BRC-20.

Can I add my own tokens to Runes Dex exchange?

Everyone can create liquidity pools by depositing liquidity on Runes Dex.

Explore detailed Runes on our Runes Dex Explorer.

• Tokens

• Pools

• Transactions

TICKER - RUNES•NETWORK.

RUNES-NETWORK total supply - 690,690,690.

Explorer - https://ordiscan.com/rune/RUNESNETWORK

Get started interacting and building on top of the RunesDeX Platform with our REST API. For access please reach out to partners@runesdex.com.

General Info

Base URL: https://app.runesdex.com/v1

Authentication:

The RunesDEX API uses API keys to authenticate requests. The API key you’ve been provided must be included in the x-api-key HTTP header in all authenticated requests. To request an API key, please reach out to the RunesDEX team.

Responses:

• 200 OK: The swap was successful. The response will include details of the transaction.

• 400 Bad Request: The request was invalid (e.g., missing parameters, invalid values).

• 500 Internal Server Error: An error occurred on the server while processing the request.

Bitcoin Runes - Bitcoin Runes is kind of a new token standard in the Bitcoin ecosystem. In simple terms, Bitcoin Runes are a new token standard for creating fungible tokens on Bitcoin.

The protocol was introduced last September by Bitcoin developer Casey Rodarmor, the creator of the Bitcoin Ordinals. Runes improves fungible tokens on Bitcoin. One of their benefits is that they increase Bitcoin’s appeal and could onboard millions to the network. Runes make it easier to create memecoins and other community-based projects on Bitcoin. There are already lots of memecoin projects on the Runes train.

In addition, the Bitcoin Rune inherits some of the native features of the Bitcoin chain, including its security. However, it is important to proceed with caution as Runes are still in their early stages.

Runes is different from other Bitcoin tokens standarts because it doesn't use a native token or off-chain data. It's a UTXO-based model that uses unspent transaction outputs (UTXOs) to track the Runes balance. Each transfer transaction is split into different UTXOs, each holding a different amount of Runes.

The Runes protocol’s launch on the Bitcoin mainnet on April 20, 2024.

Etching

Runes come into existence by being etched. Etching creates a rune and sets its properties. Once set, these properties are immutable, even to its etcher.

Runestones

Rune protocol messages, called runestones, are stored in Bitcoin transaction outputs.

A runestone output's script pubkey begins with an OP_RETURN, followed by OP_13, followed by zero or more data pushes. These data pushes are concatenated and decoded into a sequence of 128-bit integers, and finally parsed into a runestone.

A transaction may have at most one runestone.

A runestone may etch a new rune, mint an existing rune, and transfer runes from a transaction's inputs to its outputs.

A transaction output may hold balances of any number of runes.

Runes are identified by IDs, which consist of the block in which a rune was etched and the index of the etching transaction within that block, represented in text as BLOCK:TX. For example, the ID of the rune etched in the 20th transaction of the 500th block is 500:20.

Response

{
  "request_id": "123e4567-e89b-12d3-a456-426614174000",
  "pair_id": 42,
  "pair": "$RUNE-BTC",
  "base_address": "bc1abc...",
  "quote_address": "bc1xyz...",
  "base_amount": "0.5",
  "quote_amount": "1000",
  "btc_tx_fee": 10000,
  "psbt": "cHNidP8BAHECAAAAAe1f...",
  "raw_tx": "02000000000101b1...",
  "base_inputs": [0, 1, 2],
  "quote_inputs": [3, 4]
}

Visit the tokens page for more information on Runes tokens.

Information about all runes like that:

1. Token name

2. ID / Rune Ordinal Number

3. Minted / By now

4. Divisibility

5. Deployment Timestamp

For search, click the magnifier in the upper right corner of the list

Best Wallets for Bitcoin Runes

In this video you’ll learn how to set up an , the leading Bitcoin wallet for Ordinals, BRC20 and Runes.

• Segwit Address (3): Store your Bitcoin (also used for purchasing Ordinals, Runes, etc)

• Taproot Address (bc1p): Store ordinal inscriptions, BRC-20 tokens, and Runes.

Taproot Wallets Top Picks:

The simplest way to buy BTC is through a secure app that offers fiat onramp services.

Exchanges:

Onramp services:

Most major exchanges provide a wide range of payment options, enabling users to purchase BTC using debit or credit card, Apple Pay, Google Pay, Samsung Pay, or wire transfer.

Business Contacts

• hello@runesdex.com

Help Contracts

• help@runesdex.com

• Discord

Our API is defined using the OpenAPI 3.0 specification. You can easily explore and test the endpoints using tools like Swagger UI, or Postman. For convenience, you can interact with our API on our hosted SwaggerUI page:

You can also quickly send sample API requests using the below. If you'd prefer to use a tool like Postman, download our OpenAPI spec available at:

API Explorer