High-Level Design
A high-level overview of the PACT SWAP design.
PACT SWAP is built directly on Coinweb — a smart contract platform designed for deterministic, cross-chain computation. Unlike EVM chains or bridging layers, Coinweb doesn't require separate consensus. Instead, it layers execution logic on top of existing blockchains, allowing smart contracts to read, react to, and synchronize data across multiple L1s with full consistency. This architecture ensures that every contract interaction is deterministic and reproducible — critical for cross-chain state management.
Market participants
Market makers, such as users, liquidity providers (LPs) and arbitrageurs, interact with the PACT SWAP smart contracts through the API or the PACT SWAP user interface.
Order book
PACT SWAP is an order book based DEX. Created orders are 2x collateralized by locking up CWEB in the Collateral Vault Smart Contract.
Swapping Assets
Users can swap assets by matching orders and sending simple L1 transactions to the destination address provided by the order matching system.
L1 Transactions
All transactions are handled on the underlying blockchains, no validators, no bridges, no additional consensus layers - just native transactions.
Reactive Smart Contracts
Reactive smart contracts monitor blockchains and react to events happening on them. A smart contract can be used to track blockchain events, to create PACTs and to release the collateral if a PACT is or is not fulfilled.
PACT Framework
Coinweb's PACT framework is the core of PACT SWAP. In the end the PACT smart contract decides if a swap was fulfilled or not. Based on the outcome either the collateral is released back to the market maker or the collateral is seized in favor of the deceived user.
Each smart contract in PACT SWAP runs in a WASM-based execution environment, enabling high-performance, chain-agnostic logic. Coinweb contracts can track events across different chains, including UTXO-based and account-based models, and emit new transactions based on real-time data. This means that a PACT can observe a Bitcoin deposit, validate an Ethereum payment, and release collateral — all from the same logic layer without relying on off-chain consensus or manual coordination.
Coinweb's role is not just to glue chains together — it provides a robust foundation for PACT SWAP's security, capital efficiency, and composability. By maintaining consistent state across all chains it connects, Coinweb allows PACT SWAP to function as a single logical DEX across many blockchains — not a fragmented collection of isolated pools. This tight integration is what makes permissionless native BTC swaps, smart contract settlement routing, and serverless frontends all possible.
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