Glossary

Key terms

• AMM (Automated Market Maker) A protocol that automatically prices assets based on a mathematical formula, allowing users to trade without a traditional order book.

• Bound Auth Bound's passkey-based authentication system that creates self-custodial wallets across BTC, EVM, and Solana, with account backup and recovery support.

• bUSD Bound's native Runes-based stablecoin on Bitcoin, backed 1:1 by other stablecoins. Settlement layer for all Bound structured products.

• BIP322 A Bitcoin standard for signing arbitrary messages with a Bitcoin wallet. Used by Bound for API authentication.

• Concentrated Liquidity An AMM model where LPs provide liquidity within a specific price range, allowing for more capital-efficient liquidity provision.

• Diamond Hands Bound Launchpad's game theory mechanic. Long-term holders of a launched token earn a growing share of LP trading fees as other holders sell.

• FROST Multisig Flexible Round-Optimized Schnorr Threshold Signatures. Bound uses a 3-of-5 FROST setup for decentralized Bitcoin transaction signing.

• LP (Liquidity Provider) A user who deposits assets into an AMM pool to enable trading and earn a share of trading fees.

• OP_12 A Bitcoin Script opcode repurposed by Bound to encode structured AMM data in dust-value outputs, enabling on-chain DeFi without smart contracts on Bitcoin.

• PSBT (Partially Signed Bitcoin Transaction) A Bitcoin transaction format that allows multiple parties to add their signatures before a transaction is broadcast. Bound uses PSBTs for all trading operations.

• Runes A Bitcoin-native fungible token protocol. Bound's AMM is purpose-built for trading runes on Bitcoin mainnet.

• Sequencer A node operated by Bound and other stakeholders that validates transaction requests, coordinates signing, and broadcasts finalized transactions to Bitcoin.

• SODAX The cross-chain swap infrastructure powering Bound's native asset swaps across BTC, ETH, SOL, and more.

• Trading Wallet A 2-of-2 timelocked multisig wallet created on signup. Requires both your signature and Bound's co-signature. Enables near-instant trade execution. Bound's signature expires after 3 months.

• UTXO (Unspent Transaction Output) The fundamental unit of value in Bitcoin. All Bound AMM operations are built around Bitcoin's UTXO model.

• Virtual Mint Bound Launchpad's off-chain minting mechanism that mirrors on-chain mint UX while committing raised BTC to AMM liquidity instead of miner fees.

FAQ

FAQ content to be compiled from team and support channels. See VERIFY log item #46.