4 sats \ 1 boost \ 5 replies \ @0260378aef 8 Jan 2022 \ parent \ on: A multisig P2P Bitcoin trading platform - Hodl Hodl bitcoin
Oh, that's fun. I'd like to know more technically about the implementation. I couldn't find any bids/offers on the site and can't see any technical docs (maybe they're there but in a few minutes, I couldn't find them).
HodlHodl is using 2 of 3 and holding a third key as escrow/arbiter, is that correct? For the LN case, are they keeping that model or somehow arranging a submarine swap construction? If the former, how are they doing proof of payment, exactly? If the latter (I doubt it), I'd be interested in the exact construction.
HodlHodl simply added LN as a payment method.
So the offers are all still just offers to BUY BTC (on-chain) or offers to SELL BTC (on-chain). Nothing changed -- seller's BTC goes into multisig escrow, buyer sends LN payment, seller releases BTC escrow. If there's a dispute where seller claims buyer didn't pay the LN invoice, that's a normal LN method to prove whether or not that is true (using the preimage).
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Oh that's true, there's a subtlety: I was remembering the fact that you can't prove that you paid, and not someone else, (because others on the route have a preimage), but here that's irrelevant, because arbitration will only require proof that the payment is made, not that a specific person did so.
Hopefully we get more sophisticated in future, though I didn't expect it yet: there is no good reason not to use on/offchain swap markets for this kind of thing (they kinda already exist, but I don't think any are p2p(?)).
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The hurdle to providing on/offchain swap P2P is that there's (currently) no easy way to escrow the LN without doing it custodial.
If you see the "Crypto-to-crypto methods" of this list includes three P2P exchanges, but the two non-custodial, Bisq and HodlHodl, provide LN only as pmt method, and the remaining one is custodial ... they let you deposit and withdraw with LN, and you pay a fee (1%) when withdrawing BTC via LN.
Exchanges With LN:
https://github.com/cointastical/Exchanges-With-LN
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In reviewing that, ... it looks like Bisq does not support LN even as a payment method. There is a fork of Bisq, "Misq", ... or even Bisq 2.0, in-development that will handle multiple protocols, including LN.
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