Bitcoin Perpetual Swaps

Onchain perpetual swaps represent a groundbreaking development in the Bitcoin ecosystem, leveraging the Nakamoto Index to enable perpetual futures contracts directly within Bitcoin's scripting capabilities. With the Nakamoto Index providing a transparent and reliable price oracle, these perpetual futures contracts can be accurately and efficiently settled onchain.

By integrating perpetual futures contracts into Bitcoin script, we unlock the potential for a fully self-contained financial system within the Bitcoin network. This system allows for the issuance of synthetic dollars through 1x shorting of perpetual futures contracts, creating a decentralized and trustless mechanism for synthetic dollar generation and trading.

Onchain perps enhance Bitcoin's functionality, offering sophisticated financial instruments while maintaining the network's inherent security and decentralization. This innovation paves the way for a Bitcoin-native bank, where market participants can engage in futures trading, synthetic dollar issuance, and settlement with unprecedented transparency and reliability.

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