> For the complete documentation index, see [llms.txt](https://docs.leather.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.leather.io/learn/what-are-bitcoin-crypto-swaps.md).

# What are Bitcoin Crypto Swaps?

A crypto swap exchanges one asset for another without a centralized exchange. Atomic swaps, liquidity pools and swaps in Leather.

A crypto swap exchanges one asset for another directly from your wallet, without a centralized exchange holding your funds. Swaps run through smart contracts or scripts that complete the whole trade or none of it.

## Atomic swaps

An atomic swap trades assets between two blockchains with a hashed time-locked contract (HTLC). Both sides lock their asset under the same secret. Revealing the secret to claim one side also unlocks the other, and both sides refund if time runs out. Tier Nolan described the method in 2013.

## Swaps through liquidity pools

Most swaps today run through a liquidity pool: a contract holding two assets that people deposit. The pool's formula sets the price from the amounts it holds. A large trade in a small pool moves the price, which is why swap screens show slippage and price impact.

## Bitcoin swaps

A Bitcoin swap trades into or out of BTC. Bitcoin itself has no general smart contracts, so swaps involving BTC use atomic swaps, a bridge such as sBTC, or a layer such as Stacks.

## Swaps in Leather

The Swap screen of the Leather extension swaps Stacks tokens through swap providers on Stacks, and bridges BTC to sBTC. See [Stacks swaps](/stacking-and-sbtc-reference/stacks-swaps.md) and [Swap Stacks tokens for sBTC](/sbtc/swap-sbtc.md).