Bitmatrix is functionally equivalent to Uniswap V2, however, there are some tradeoffs. The nature of the EVM model inherently allows contract-contract calls. While this brings various benefits such as pool-to-pool swaps, it as a downside allows flash-loan attacks. This is fundamentally not possible when operating in a UTXO environment.

On the other hand, Bitmatrix users, when integrated with liquid.taxi, can pay for execution in any desired asset. This means users can interact with a smart contract without holding the gas asset such as L-BTC. This brings an overall frictionless user experience.