[dlc-dev] DLC Factories
conduition
conduition at proton.me
Sun Jan 12 03:24:24 CET 2025
Hey DLC devs,
I have an interesting concept I concocted recently which I call DLC Factories.
I'm curious to know if you've seen anything like it before or if you have any
feedback.
https://conduition.io/scriptless/dlc-factory/
This is a way to create a kind of "rolling" DLC which can be endlessly renewed,
as long as both parties can come online to sign new CETs before a certain deadline.
Technically, it's more like a series of DLCs which can be funded only at specific
times and by specific parties.
It uses a punishment mechanism similar to lightning to deprecate outdated CETs,
and so requires participants to be always online (or have a watchtower handle it
for them).
There's also the potential for a factory to enter a deadlocked state if neither
participant publishes their commitment TX in time.
These drawbacks aside, it seems like a neat and relatively straightforward way
to create things like american-style options, or flexible CFDs, which can be
exercised or settled at arbitrary times. I wonder if there are new financial
instruments we could implement on bitcoin using something like this, tailored
to specific use-cases.
Feedback appreciated and thanks in advance for any constructive improvement suggestions :)
-c
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