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  • Dex Fuctions
  • Problems
  • Motivation
  • PIP (Portico Improvement Proposal)
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Dex Fuctions

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Last updated 1 year ago

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The Dex will have four parts:

  • Atomic Swap

  • Low fees (0.005%)

  • Without KYC

  • Lightning Native Swap

HOW WORKS?

For make Swap between chains different wil be necessary have HTLC(Hashed TimeLock contract), where alllow commucation with A and B that have information:

  • sender

  • recipient

  • amount of BTC

  • expiration

  • hashlock=hash(secret_A)

  • PHold (Payment Hold)

Example: LBTC<>BTC.

  1. User A creates an HTLC on source layer with the desired LBTC (1 LBTC) to be swapped and B as the recipient (generally found and negotiated off-chain like 1 BTC on LN).

  2. B checks if the source contract is correct and finalized, then B will create another HTLC with reversed sender/recipient, i.e., sender = B and recipient = A with the amount of token (1 LBTC) that user A wishes to receive. An important note is that B will copy the hashlock on the source contract even B has no idea the secret is.

  3. User A checks if the destination contract matches the user’s swap request and is finalized, then user A will unlock 1 LBTC by revealing secret_A.

  4. At this moment, LP B can learn the secret and unlock 1 LBTC at the source contract, which completes the swap.

  5. And A received BTC on Lightning Network using Invoice (PHold).

LIQUIDITY PROVIDER

We'll use hosting channels or funding channels for create liquidity provider safe and unique.

Channel A<>L-BTC + BTC

Remember the L-BTC will be "token" synthetic inside Lightning

GRAPHIC PORTICO 1

GRAPHIC PORTICO 2

FEATURES and COMPATIBILITY

  • Fedimint

  • Lightning Network (LND/LDK/CLN)

  • Liquid Network

  • Sequentia

  • Spacechain

  • Softchain

  • Statechain

  • RGB

  • Fabric Protocol / PortalOS

  • Tor and I2P

  • Drivechains

  • Ark

  • BIP-199

  • DLCs

  • PTLCs

  • DHT (HyperCore)

  • Taproot

  • Covenants

  • Taproot Channels

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