84 sats \ 3 replies \ @tierotiero 29 Jan \ parent \ on: Banco: Non-Interactive Swaps bitcoin
It was meant to be read as "If Bitcoin had full introspection capabilities". You can deploy in production today on Liquid, but it's not and was not the original goal.
The team started working on "let's make non-interactive coinjoins with CTV" to provide a use-case most Bitcoiners are interested in (privacy) but then realized was not practical and then switched to using Elements introspection opcodes mostly because of the tooling available there. (and the team is notoriously expert in using Elements stuff)
I think without seeing a live app in production it's hard to grasp the trade-offs of various covenant proposals.
Oh, then I withdraw my criticism, except: it did seem to me that you advertised this version of the app as self-custodial.
Other than that, great job! Demoing what you can do with covenants is good and important and a wonderful thing to do on Liquid.
I wonder how hard would it be to port it to actual CTV on inquisition
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this version of the app as self-custodial
I will try to re-read and try re-phrase, as the goal of the project was really to build something for a "hypothetical" world where we have "Bitcoin + OP_INSPECTOUTPUT*[VALUE|SCRIPT] opcodes". Totally agree with that L-BTC is an IOU so use it cautiously, on the other hand, trading FUSD for USDT seems pretty reasonable to use a federated sidechain.
great job!
Thank you, sir!
hard would it be to port it to actual CTV
I think would be very clunky or even impossible to make it work with CTV only. Maybe APO tho, but the beauty of using an opcode-based covenant is that it requires zero effort to be supported by all wallets out there, no need to make a special signature on non-standard sighash.
The beauty of this is that the taker can add more inputs and outputs to the fulfilled transaction, without having the contract script to pre-commit to all possible permutations. Like adding the BTC input to pay for fees (think of the FUSD-USDT trading pair) or even delegating to a third party that acts as a fee supplier as a service ie. https://liquid-taxi.vulpem.com
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For the topic, if you want to dive deeper, I suggest this post from Rusty https://rusty.ozlabs.org/2024/01/08/txhash-tx-stacking.html
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