# 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.