Overview

radFi is an Automated Market Maker (AMM) protocol for Bitcoin and runes that executes trades entirely on the Bitcoin mainnet. This enables two primary activities for Bitcoin users:

1. Automated Market Making: Users can earn yield on their BTC and runes by trading within a customizable range. By depositing assets into radFi pools, users can execute their chosen strategy. These users are known as Liquidity Providers (LPs).

2. Instant Swaps: Users can buy or sell runes with near-instant execution, multiple times within a single block. Settlement occurs at the end of the block. These users are referred to as “degenerate traders.”

radFi was inspired by the concept of Light Pools, originally authored by Casey Rodarmor.

“The idea behind light pools is simple. Users who wish to offer swaps between Bitcoin-native assets, like rare sats, inscriptions, or runes, run nodes that quote prices for swaps.”

radFi operates as described, running a node that quotes prices for swaps between Bitcoin-native assets. While Casey critiques the AMM structure for its lack of technical efficiency, we believe that combining the concept of Light Pools with AMM-style pricing and automation allows less technical users to participate, ultimately deepening liquidity for Bitcoin tokens.