# OmniSat

> OmniSat is a community-based platform launched in 2023, designed to create decentralized finance markets using BRC-20 Tokens on Bitcoin with an emphasis on prot...

- Canonical URL: https://iq.wiki/wiki/omnisat
- Categories: Organizations
- Created: 2023-07-12T08:15:33.755Z
- Last updated: 2023-07-14T22:19:01.965Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**OmniSat** is a community-driven organization built to design solutions for Bitcoin Native [DeFi](https://iq.wiki/wiki/defi) Primitives and it was launched on May 18, 2023. [\[1\]](#cite-id-ovorrnfw9yl)[\[2\]](#cite-id-pwizve16xj)  
![image](https://ipfs.everipedia.org/ipfs/QmRVN8r7JxPdK1fb3T2BvbNRkPZS1X27m13cttkpVZp88y)  
  
# Overview  
  
The OmniSat platform[\[2\]](#cite-id-pwizve16xj) allows users to swap [BRC-20](https://iq.wiki/wiki/brc-20) tokens. OmniSat’s Bitcoin native approach is designed for composable solutions. OmniSat privatives create network efforts that enable many varieties of [decentralized finance](https://iq.wiki/wiki/defi) markets built on [Bitcoin](https://iq.wiki/wiki/bitcoin). [\[4\]](#cite-id-i4d3t37234)  
  
OmniSat’s products and primitives are designed around protocol-owned liquidity concepts. Protocol-owned liquidity enables reward guarantees. In times of market distress when liquidity is most needed, it’s protected by bond terms, which effectively protect markets from death spirals initiated when yield-chasing mercenary capital is pulled resulting in risk. [\[4\]](#cite-id-i4d3t37234)  
  
# BRC-20  
  
[BRC-20](https://iq.wiki/wiki/brc-20) tokens were launched by an anonymous developer named domo on March 9, 2023. The tokens are built on [Bitcoin](https://iq.wiki/wiki/bitcoin) and use an experimental standard to create fungible tokens. Unlike token standards on EVM [blockchains](https://iq.wiki/wiki/blockchain). BRC-20 tokens do not rely on [smart contracts](https://iq.wiki/wiki/smart-contract). Instead, users can store a script file on [Bitcoin](https://iq.wiki/wiki/bitcoin) and use it to assign tokens to individual satoshis using Ordinal Theory[\[3\]](#cite-id-3q5e81863mq). [\[5\]](#cite-id-8c83oiuaje7)  
  
BRC-20 tokens utilize JSON data embedded in ordinal inscriptions, allowing for token deployment, [minting](https://iq.wiki/wiki/minting), and transfer. [\[5\]](#cite-id-8c83oiuaje7)  
  
> “This is just a fun experimental standard demonstrating that you can create off-chain balance states with inscriptions. It by no means should be considered THE standard for fungibility on bitcoin with ordinals, as I believe there are almost certainly better design choices and optimization improvements to be made.” — domo  
  
# Primitives  
  
## Bitcoin Based Automated Market Maker (BBAMM)  
  
Digital assets that are stored in a BBAMM [liquidity pool](https://iq.wiki/wiki/liquidity-pool) are able to be traded against by traders. [Liquidity providers](https://iq.wiki/wiki/liquidity-providers) store digital assets in a liquidity pool by depositing proportionate BRC-20 tokens into a given liquidity pool, based on Ticker, where [liquidity providers](https://iq.wiki/wiki/liquidity-providers) take on price risk and are compensated with trading fees. [\[6\]](#cite-id-pkzlnpya3bm)  
  
## BTC-20  
  
BTC-20 enable BRC-20 tokens to be used in [DeFi](https://iq.wiki/wiki/defi) by making them compatible with a BTC familiar. [\[6\]](#cite-id-pkzlnpya3bm)