1Foot

IMPORTANT: Access relayer and resolver code from organization http://github.com/1foot-Labs

🦶 1FootSwap — Secure, Atomic ETH-BTC Swaps Using HTLCs and Dutch Auctions

1FootSwap is an innovative cross-chain swap protocol that enables atomic ETH-BTC and BTC-ETH swaps using Hashed Time Locked Contracts (HTLCs), 1inch Fusion+, and Dutch auction-based pricing. It is designed to be secure, trustless, and user-friendly, ensuring seamless interoperability between Ethereum and Bitcoin.

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🔁 How It Works

1. User Intent & Secret Generation

• Users access 1FootUI, a simple and intuitive interface to initiate a swap.
• They choose the direction (ETH → BTC or BTC → ETH), enter the amount, and generate a secret that will be used to claim funds on the destination chain.
• For example, if a user wants to swap 1 ETH, the swap starts with a corresponding amountToReceive of ~0.03 BTC (based on market price).

2. Order Creation & Dutch Auction

• A Relayer service creates an on-chain Order using the user’s data.
• This order is visible to resolvers (liquidity providers or bots) who monitor for active swaps.
• A Dutch auction is applied — over time, the amountToReceive decreases gradually, incentivizing resolvers to fulfill the order quickly.

3. Resolver Competition & Escrow Setup

• Resolvers compete to fulfill the order at the most favorable price.

• The winning resolver initiates the HTLC escrow contracts on both Ethereum and Bitcoin.

  • The user funds the source chain escrow.
  • The resolver funds the destination chain escrow.

4. Relayer Coordination

• The Relayer monitors both chains to ensure that:

  • Escrows are correctly deployed.
  • Both are funded as expected.

• Once verified, the order status is updated to ready to claim.

5. User Claims Funds

• The user uses the secret they generated earlier to claim their funds on the destination chain, completing the atomic swap securely.

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🔐 Key Features

• 💡 Dutch Auction-Based Pricing: Fair and dynamic pricing that rewards resolvers for fast action while letting users control execution time.
• 🔗 Cross-Chain Atomicity: Guaranteed atomic settlement via HTLCs — funds are either exchanged fully or refunded, with no risk of partial execution.
• 👤 User-Centric Security: The secret used for claiming funds is generated by the user and never shared, preserving complete control.
• 🧾 Transparent & Trustless: All steps — order creation, escrow setup, fulfillment, and claim — are verifiable on-chain.
• 🌉 Ethereum & Bitcoin Compatible: Bridges the gap between the two largest blockchains with a seamless experience.
• 🖥️ User-Friendly Interface: 1FootUI offers a smooth, guided experience with clear instructions at every step — no prior technical knowledge required.
• 🤝 Resolver Market: Open participation for resolvers to compete in fulfilling swaps, increasing decentralization and market efficiency.

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⛓️ How HTLCs Power Atomic Swaps Hashed Time Locked Contracts (HTLCs) are the cryptographic foundation of 1FootSwap's atomic swaps. They ensure that either both sides of a swap complete successfully — or neither does.

• Each HTLC locks funds using a hash of a secret (known only to the user).
• The contract can be redeemed only by revealing the preimage (i.e., the secret).
• If the secret isn’t revealed before a set timeout, the funds become refundable to the original sender.
• 1FootSwap deploys HTLCs on both chains (Ethereum & Bitcoin) with synchronized logic and timeouts.

This mechanism guarantees cross-chain atomicity — minimizing counterparty risk and removing the need for intermediaries or custodians.

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💭 Why 1FootSwap?

1FootSwap represents a next-generation protocol for secure cross-chain asset exchange. It’s designed for:

• Power users seeking trustless, on-chain BTC-ETH swaps.
• Liquidity providers and relayers who want to automate competitive market-making.
• Everyday users looking for a simple UI that makes complex cross-chain operations feel effortless.

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Frontend (Next.js): Built with Next.js for a fast, responsive UI. Users can easily initiate swaps, track progress, and claim funds through a clean, React-based interface.

Resolver (Golang): High-performance resolver bots written in Go. They watch for active orders, compete in Dutch auctions, and handle HTLC deployments on both Ethereum and Bitcoin.

Relayer (Node.js): Node.js powers the relayer service, coordinating swaps by monitoring both chains, verifying escrow setups, and updating order status in real time.