Non custodial solutions for Predyx - feedback requested. \ stacker news ~oracle

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Non custodial solutions for Predyx - feedback requested.

630 sats \ 18 comments \ @mega_dreamer 31 Oct oracle

Hello Stackers and Predyx users,

We're finally starting to look into solutions for Non-custodial wallets for Predyx (both user and market wallet).

At this point here are 3 solutions which we've been considering:

Spark
Ark
Cashu ecash

However none of them are perfect, they all have their own flaws. Feel free to correct my assumptions:

Spark has privacy issues - as we all must have heard of it recently. All your transactions can be tracked via spark explorer with some reverse engineering. At the same time they have the ability to issue tokenized shares for the markets. No smart-contacts or DLCs "yet", but its in the pipeline. Multi-sig wallet not yet supported for bitcoin, but supported for tokenized shares. They're 100% Lightning native.

Regarding the privacy issue of Spark - here's my argument for using Spark. As you all the know, currently in Predyx all your trades/shares/activity are open and visible to the world. If someone wanted to reverse engineer your transaction, they could easily do so by scrapping the markets/activity. Prediction markets are generally very open in the above regards for transparency reasons.

Ark also has it's own issues. They're not 100% lighting native. We'll need a bolt swap to use their solution. However they do have the ability to run smart-contracts and issue tokenized shares for the markets.

Cashu-ecash: I don't know much about it, but I've heard you need to trust the mint. But its pretty easy to send and receive the token on any type of communication protocol (sms, emails etc)

Please share your thoughts for and against the above solutions. And help us shape Predyx's transition into a non-custodial prediction market.

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101 sats \ 1 reply \ @Coinsreporter 31 Oct

I'm not an expert but maybe you should try NWC!

And yeah why is it necessary for Predyx to move to non-custodial solutions? If it is necessary, it should not hinder the custodial login and trade making on Predyx.

121 sats \ 0 replies \ @mega_dreamer OP 31 Oct

why is it necessary for Predyx to move to non-custodial solutions?

Regulations: In the US you either have to have a non-custodial wallet or get a MTS (Money transmitters license)
Trustless and decentralized solutions. Currently every user have to trust Predyx that we will redeem their shares for sats.

122 sats \ 6 replies \ @BlokchainB 31 Oct

NWC! Or follow the stacker news approach allow users to choose what wallet they want to use.

77 sats \ 4 replies \ @mega_dreamer OP 31 Oct

NWC is great, but cannot help us with issuing fully backed tokenized conditional shares.

However that being said, NWC is coming to Predyx either way. Soon you'll be able to login to Predyx with it.

101 sats \ 3 replies \ @BlokchainB 31 Oct

What about strike API?

145 sats \ 2 replies \ @mega_dreamer OP 31 Oct

Then Strike will just become our custodian (LSP - Lightning Service Provider). Its basically moving the trust from Predyx to Strike. Plus its a real pain to get Strike to become our custodian. They have so many rules for KYC etc.

There are better options like Zeebede or Magnolia. But in the end they are all acting as your custodian which will require strict KYC.

We'd like to avoid KYC as much as we can. Its our last resort.

202 sats \ 1 reply \ @BlokchainB 1 Nov

Did you look into shocknet new CLINK?

132 sats \ 0 replies \ @mega_dreamer OP 1 Nov

shocknet new CLINK

https://github.com/shocknet/CLINK

No - just googled it. Looks very interesting. Kinda like hodl invoice but better. Will check it out in more details over the weekend. Thanks for sharing.

52 sats \ 0 replies \ @Coinsreporter 31 Oct

I agree

87 sats \ 4 replies \ @Team_Predyx 31 Oct

Hi, @Coinsreporter @grayruby @BlokchainB @Undisciplined @OT @Wumbo @south_korea_ln @SimpleStacker @ACYK @softglitter2d @ken @DarkStacker @itsTomekK @needcreations_ @Solomonsatoshi @afpsniper88 @kepford @Cje95 @Jer

101 sats \ 3 replies \ @Cje95 31 Oct

I use Alby and like how easy it is to use! It's non-custodial so I would look at it!

0 sats \ 2 replies \ @mega_dreamer OP 31 Oct

I love alby as well. However there is some cost associated with it. It requires to spin a separate VM (Virtual Machine) or a container for each wallet. Cost wise, it may not be a viable solution for us at this time.

I'm basically looking for solutions similar to Polymarket that allows us to issue tokenized conditional market shares that will be redeemable based on the oracle's decision. These conditional tokenized shares must be backed by btc/sats - to overcome bankrun problem.

So basically a trustless, decentralized solutions with non-custodial wallets.

21 sats \ 1 reply \ @Cje95 31 Oct

Ahhhh didnt think about the tokenized conditional market shares..... yeah I am not sure beyond the bit I have done with Alby. You could reach out to them and see if they have any way to accommodate

10 sats \ 0 replies \ @mega_dreamer OP 31 Oct

Sure will do. Tomek is a good friend of mine and we're in constant touch.

101 sats \ 1 reply \ @softglitter2d 31 Oct

For me, the NWC or Ark options are the best for non-custodial, either way, I'm in