🤝Example: A Bitcoin DEX

Multi-party programs on Bitcoin enable the creation of an AMM that powers a DEX like Saturn on Arch. Bitcoin holders can contribute their BTC to a liquidity pool governed by a program. Traders can swap Bitcoin with other assets in the pool, with the program determining prices based on the ratio of assets in the pool. This setup provides continuous liquidity for Bitcoin trading pairs on the DEX, allowing for seamless swaps without requiring individual trade counterparts. Liquidity providers earn a portion of the trading fees, incentivizing them to contribute to the pool.