Omnity Network has introduced the Runes Exchange Environment, or REE, a platform that lets developers build decentralised finance applications directly on Bitcoin. It promises to combine Bitcoin’s security with the kind of flexibility usually reserved for other programmable chains, all without bridges or wrapped tokens.
For years, developers have struggled to bring smart contracts to Bitcoin without compromising its simplicity. REE tackles that challenge through a new approach to transaction coordination. Instead of relying on intermediaries or custodial services, it uses a decentralised signing model that keeps users in control of their own bitcoin while enabling complex operations such as swaps, token launches and automated trading.
At the centre of REE is its Orchestrator, a system that manages how transactions move through the network — from collecting signatures to confirming settlements. Each operation is handled through standard Bitcoin transaction formats, ensuring compatibility with existing wallets. This design allows REE-based applications to work natively within Bitcoin’s infrastructure, removing the need to transfer assets to another chain.
Two early examples showcase how this works in practice. RichSwap, a decentralised exchange built on REE, allows multiple operations to occur within a single Bitcoin block. Tyche, a token launchpad, enables projects to issue and distribute assets directly on Bitcoin without external dependencies. Both demonstrate REE’s goal of making Bitcoin more versatile while preserving its core principles of transparency and self-custody.
REE is Omnity Network’s second major infrastructure release after Omnity Hub, a bridge connecting Bitcoin layer-2 networks with chains like SUI, Solana and Base. By mid-2025, Omnity Hub had already crossed $120 million in total value locked, signalling strong developer interest in Bitcoin-linked ecosystems.
The technical side of REE revolves around the concept of partially signed Bitcoin transactions, or PSBTs. This format allows multiple parties to sign different parts of a transaction before it’s broadcast to the blockchain. REE builds on that idea by decentralising the signing process through a network of smart contracts. In doing so, it eliminates the need for a central coordinator while maintaining transparency and auditability.
Each component in REE has a specific function. Coins represent bitcoin or rune-based assets. Pools act as managed containers holding these assets and tracking their state. Exchange Canisters define the rules for how assets are swapped or managed, while the Exchange Clients provide the user-facing or integration interfaces. The Orchestrator ties everything together, ensuring that transactions are executed consistently and securely.
One of REE’s key advantages is accessibility. Developers can call its functions through simple APIs, allowing them to sign taproot and SegWit transactions or connect to external smart-contract logic without needing deep blockchain expertise. Because it’s open source and compatible with standard wallets, REE lowers the barrier to entry for building Bitcoin-based applications.
What sets this approach apart is how it combines Bitcoin’s base-layer security with additional programmability. Instead of creating sidechains or custodial layers, REE operates as an execution environment that lives alongside Bitcoin and extends its capabilities through decentralised coordination. That design keeps transactions verifiable on-chain while enabling faster, more flexible user experiences.
The idea of building DeFi directly on Bitcoin has always attracted interest, but progress has been slow due to technical constraints. REE attempts to change that by offering developers the same creative freedom they have on other networks, without forcing them to leave Bitcoin’s security model behind. If the platform gains traction, it could turn Bitcoin into a viable base for applications traditionally confined to Ethereum and similar chains.
As Bitcoin’s ecosystem continues to evolve, REE could become a bridge between its original purpose as sound money and a new generation of financial tools. Whether it succeeds will depend on adoption, liquidity and how developers respond to its promise of bringing DeFi home to Bitcoin — on Bitcoin’s own terms.
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