A Blockspace Markets Protocol

Alkimiya facilitates the creation, trading, and settlement of synthetic blockspace resources such as BTC feerate. Users can capitalize on the impacts of on-chain activities by going long or short on BTC network tx fees.

In mid-April, following the Bitcoin Halving, the rush by several Ordinals and Runes projects to mint their collections caused the network feerate to spike from 70 sat/vB ($6.46 per transaction) to over 1,300 sat/vB ($120 per transaction).

In June, a bug in OKX’s UTXO consolidation script led to fees skyrocketing from 60 sat/vB ($5.80 per transaction) to over 900 sat/vB ($87.80 per transaction) in a single day, resulting in approximately $18 million in losses for OKX due to transaction fees.

Previously, service providers had no protection against such wild fee swings, merely paying these fees as they processed transactions.

Alkimiya allows them to hedge against these costs by buying future Tx Fees.