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172 sats \ 3 replies \ @kevin 30 Dec 2023 \ on: Loan shark: Super Testnet's non custodial, bitcoin only borrow and loan tool bitcoin
The amount of people not watching the whole video is too damn high!
To be expected. The video is 15 minutes long, repetitive, and confusing.
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No, it is very good and I'm a producer so that makes my reasoning morebetterest (sic). But serious I liked it and it was good. It could be edited down. Hopefully you might be able to get someone to volunteer some talent to do this video again. If not, don't worry. It was very good and I learned something from it. You might as well get feedback and don't look back. Keep going.
This tool you are making is something financial engineers would love. Yes, the very ones mentioned in The Creature From Jekyll Island. Keep working on this. Also as you make milestones. Please update in a new discussion on Stacker news so that we can send you sats.
I for one would love to see you succeed! I followed you on github. I would like to learn how Bitcoin works and you are doing the script stuff which is fascinating. The swaps seemed to work very quickly and I am curious about how that is dealing with the on chain fee nonsense. If there is a layer 2 or layer three marketplace then this would really pop! One might also be willing as a lender or borrower to pay the mempool estimate. Discount for the borrower if he pays the fee and courtesy for earning yield or if the lender pays the fee because he, the lender factored in the fee in his risk of lending like a contractor would in a bid. Then the Mempool / Miner fees are no longer an issue as long as the usury and fees are less expensive than the monopoly of violence.
Here is another rabbit hole. Maybe miners would like this tool and favor these transactions over ordinal turds.
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You might as well get feedback and don't look back. Keep going.
That's how I look at it too. It's good enough to get the job done and the more I do these videos the better I will get at them.
Please update in a new discussion on Stacker news so that we can send you sats.
Good idea!
I for one would love to see you succeed! I followed you on github.
Thank you, thank you
you are doing the script stuff which is fascinating
I think it is fascinating too, I'm so glad I get to do this stuff every day, and show people stuff they never thought was possible on bitcoin
The swaps seemed to work very quickly and I am curious about how that is dealing with the on chain fee nonsense
Depositing money into the contract address happens in one atomic swap transaction, in which the borrower pays the fee. The swap works like this:
(1) The borrower tells the lender a utxo he intends to deposit into the contract address as collateral
(2) The lender picks a utxo to send to the borrower as principle, and creates a bitcoin signature. This signature is valid for a transaction with two inputs (the borrower's utxo and the lender's utxo) and three outputs: (a) the first output will fund the contract address with the amount of the collateral. (b) The second output sends the borrower's change back to him with three variations: the amount of the collateral is subtracted from this utxo's value, the mining fee is subtracted from this utxo's value, and the amount of the principle is added to this utxo's value. (c) The third output sends the lender's change back to him minus the amount of the principle.
(3) The lender sends the signature to the borrower along with info about the utxo he used as input to the transaction
(4) The borrower validates that the signature unlocks the lender's utxo for use in this transaction, and if the signature is valid, he creates a second signature, valid for the same transaction but unlocking his own utxo (the one he picked in step 1) rather than the lender's utxo
(5) Then the borrower adds both signatures to the transaction and broadcasts it. The signatures make the transaction valid, so miners mine it.
So I deal with the fee by having the borrower pay it
If there is a layer 2 or layer three marketplace then this would really pop!
I think there is a way to make it work on lightning, I will consider this further
Discount for the borrower if he pays the fee and courtesy for earning yield
I decided the borrower should pay the fee because he is essentially purchasing a loan contract from the lender. If he doesn't think the fee plus the interest rate is worth it he can just not take the offer. Free market decision making should find an appropriate rates for these loans.
Maybe miners would like this tool and favor these transactions over ordinal turds.
I hope so, I suspect they will prefer whichever transactions pay them more money
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