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The Utexo Swap DEX enables cross-chain exchange between native Bitcoin (BTC) and RGB-native assets including USDT on Bitcoin directly on the Bitcoin network. Swaps are executed via a decentralised intent-based system powered by the HotPot protocol, an open liquidity layer that connects fragmented liquidity across multiple blockchains and coordinates quote requests, intent creation, and resolver execution across the swap lifecycle.

How It Works

Every swap involves two participants: the user, who initiates the swap, and the resolver (liquidity provider), who executes it. The swap process follows the HotPot user flow:
StepAction
1. QuoteThe user specifies the asset pair and amount. The HotPot Quote API returns a time-limited execution estimate including fees. Quotes expire and must be executed before the expiry timestamp.
2. IntentThe user creates a signed intent — a structured, off-chain commitment that cryptographically approves the swap parameters and authorises resolvers to execute under the quoted conditions.
3. ExecutionHotPot notifies the winning resolver to begin execution by depositing the required assets into a swap-specific escrow contract on the source chain and transferring the corresponding RGB asset to the user.
4. SettlementThe RGB asset is delivered to the user’s Utexo Wallet. If the resolver does not complete execution within the validity window, the escrow is released back to the user automatically.

Swap Mechanism

The Utexo Swap uses the HotPot intent-based execution model — a trustless, cross-chain swap architecture where the user’s signed intent governs the entire execution flow:
  • The user signs an intent off-chain, cryptographically committing to the quoted swap parameters and authorising resolvers to execute it according to the quoted conditions.
  • HotPot notifies the winning resolver to begin execution by depositing the maker’s assets into a dedicated on-chain escrow on the source chain.
  • The resolver transfers the corresponding RGB asset to the user’s Utexo Wallet.
  • Escrow funds are only released to the resolver once fulfillment is verified on-chain.
  • If the resolver fails to execute within the validity window, the escrow is returned to the user with no loss of funds.
This model ensures neither party can take funds without fulfilling their obligation. RGB asset delivery is validated client-side by the user’s Utexo Wallet before the transaction is finalised. Utexo does not hold user funds at any point.

Supported Assets

The Utexo Swap supports asset pairs defined by HotPot’s supported networks and tokens. The full list of supported networks and tokens is available in the HotPot Networks and Tokens documentation and can be queried directly via the HotPot API. Currently supported pairs include:
Asset PairDirectionSettlement
BTC / USDT on BitcoinInbound & OutboundOn-chain escrow + RGB client-side validation
For the complete and up-to-date list of supported tokens and networks, refer to the HotPot Swagger API reference.

Security

The Utexo Swap is secured by the HotPot protocol’s on-chain settlement logic:
  • Intent atomicity — The swap either completes in full or reverts. There is no partial execution risk. HotPot does not hold or custody user funds.
  • Resolver constraints — Resolvers can only move user-approved assets into the swap-specific escrow, execute the swap according to the signed intent, and withdraw escrowed funds only after fulfillment is verified. They cannot withdraw funds before fulfillment conditions are met or access funds from any other swap.
  • Escrow protection — A dedicated escrow is created for each swap on supported networks. User funds are locked inside this escrow and can only be released once the swap is fulfilled.
  • Client-side validation — RGB asset delivery is validated locally by the user’s Utexo Wallet before the transaction is confirmed, consistent with the broader Utexo privacy model.