Run a Settlement Provider
A Settlement Provider (SP) sells native BTC liquidity to users of the settlement state, competing on fees in an open market. The protocol never sells anything — SPs do. If you understand market making, you understand the role. Details: Settlement Providers.
What an SP operates
| Component | Purpose |
|---|---|
| A BATHRON full node | validate the chain, hold inventory, settle |
| A Bitcoin wallet | the BTC side of quotes |
| The SP service | publish quotes, serve the swap API, manage inventory |
The lifecycle of a quote
- You publish a price for BTC ⇄ settlement-state value.
- A user takes the quote.
- The trustless machinery does the rest: the user's Bitcoin payment is proven inside consensus (SPV), a covenant releases the counter-payment, and the return leg settles as an atomic swap. You never custody user funds — and users never custody yours.
Your earnings are the spread. Your risk is inventory and pricing — not counterparty default: an unfinished swap refunds, it does not lose money.
Reference implementation
A reference SP implementation (quoting service, swap API, dashboard) is running on the private testnet and will be published with the public testnet.
Interested in running one? Contact us.