Is the liquidity pool for Orders fully decentralized, and how is it achieved?

By utilizing PSBT and multi-signature, it is possible to achieve a fully trustless BRC20 liquidity pool.

First, the liquidity provided by users is actually a PSBT single-signed asset pair, with its output pointing to a multi-signature address shared by the user and the exchange. This design ensures that the exchange cannot directly cash out the PSBT and take the user's assets.

  1. For liquidity providers who are unwilling to give too much trust, they can provide one-way liquidity from BRC20 to BTC. In this case, the exchange does not have the ability to unilaterally steal any assets.

  2. For liquidity providers willing to give a certain level of trust, they can provide two-way liquidity. In this case, providers need to trust that the exchange will not maliciously cash out BTC to BRC20 PSBTs, stealing the user's BTC. For the type of liquidity providers, the exchange will offer higher rewards.

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