I read through the journal and I think the Ark plus DLC construction makes a lot of sense for removing custody from the market maker.
What I keep coming back to, though, is the oracle.
If the MVP runs the market maker and oracle as the same party, custody risk is greatly reduced, but settlement truth still has a single trust point. A malicious or compromised oracle could attest to the wrong outcome even if it cannot simply take custody of user funds.
Have you considered eventually using multiple independent oracles with a threshold requirement?
For something objective such as a Bitcoin price market, requiring several independent attestations before the DLC can settle seems like an interesting next step.
I am curious whether that would fit cleanly into the adaptor signature design you are working on, or whether the additional oracle combinations would make the DLC construction too complex.
To me, solving custody with Ark and then reducing oracle trust would make this considerably more interesting.
I don’t see the oracle problem as a technical problem. Maybe a threshold scheme wouldn’t be trivial, but MM and oracle can easily be different parties later, yes.
I read through the journal and I think the Ark plus DLC construction makes a lot of sense for removing custody from the market maker.
What I keep coming back to, though, is the oracle.
If the MVP runs the market maker and oracle as the same party, custody risk is greatly reduced, but settlement truth still has a single trust point. A malicious or compromised oracle could attest to the wrong outcome even if it cannot simply take custody of user funds.
Have you considered eventually using multiple independent oracles with a threshold requirement?
For something objective such as a Bitcoin price market, requiring several independent attestations before the DLC can settle seems like an interesting next step.
I am curious whether that would fit cleanly into the adaptor signature design you are working on, or whether the additional oracle combinations would make the DLC construction too complex.
To me, solving custody with Ark and then reducing oracle trust would make this considerably more interesting.