TaparooSwap

TaparooSwap is a Bitcoin Layer 1 native exchange launched in 2024 by Tap Protocol, attempting to settle asset swaps directly on the Bitcoin mainnet rather than through sidechains or wrapped representations. Market making uses an automated market maker model, and the instruments traded are mainly inscription-based assets in the Bitcoin ecosystem, including units of account related to the TRAC network and BRC-20 assets. Provider shares and fees are allocated by pool rules, and public material cites a swap fee of 0.6 percent.

On implementation, Bitcoin script does not support general-purpose smart contracts, so such trades typically assemble orders and signatures off-chain and then write the resulting settlement to mainnet in a form the script rules accept, unlike Ethereum where a contract maintains pool state directly. Public records show testing began on 31 October 2024, during which more than 2,000 swaps were completed involving roughly 4 BTC. It is categorized as a Bitcoin-native swap protocol.