TechFlow reports that on September 11, Udi Wertheimer, co-founder of Taproot Wizards, unveiled CATNIP, a native Bitcoin token protocol based on OP_CAT recursive covenants. The protocol aims to address user experience issues in existing solutions like BRC-20 and Runes, which lack support at the Bitcoin consensus layer. CATNIP will enable partial order fills, flexible bidding mechanisms, and on-chain L1 automated market makers (AMMs) with liquidity pools.
Wertheimer noted that while L1 AMMs may be constrained by Bitcoin's network characteristics, CATNIP supports efficient off-chain AMMs via CatVM. The protocol is currently under development and is planned to launch concurrently with the activation of OP_CAT on the Bitcoin mainnet. CATNIP is expected to play a significant role in the stablecoin space and open new possibilities for decentralized finance (DeFi) applications. No tokens have been issued under CATNIP yet.
