[dlc-dev] DLC Factories

[David A. Harding]

On 2025-01-11 16:24, conduition via dlc-dev wrote:
> 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.

Hi conduition,

I'm having trouble understanding how DLC factories can be both 
"endlessly extended without any onchain transaction" but also spendable 
by either party at the time any attestation is published.  Imagine:

- Alice and Bob open a factory with a commitment transaction to a DLC 
for the BTCUSD price at time t_0.

- Well before time t_0, they reuse the same funds and sign alternative 
commitment transactions for a DLC for the price at a much later time 
t_1.

- Nothing (besides the funding transaction) has been published onchain 
so far.

- Shortly after time t_0 (but long before time t_1), the oracle 
publishes their attestation to the BTCUSD price for t_0.  Either party 
can now now spend from the original commitment transaction.  If they're 
a miner or have miner assistance, they can spend without going through 
public transaction relay, so the their counterparty doesn't learn of the 
intended theft until after the spend has been confirmed.

I suspect I'm missing something, but it would seem to me that DLC 
factories must be settled onchain before the earliest maturation date of 
any DLC contained within them.

Sorry for my confusion and thanks for the interesting proposal!,

-Dave