Author: Jeremy 2021-12-24 17:17:16
Published on: 2021-12-24T17:17:16+00:00
In an email conversation, Prayank and Jeremy discussed the implementation of threshold oracles in Bitcoin and how it could be used for derivatives trading. They mentioned a project called P2P Derivatives that uses a similar approach, but has not been used for any real trades on mainnet or further developed. The discussion then moved towards the benefits of unilateral opens, which allows one party to pay the other into a derivative without them being online. This feature can be useful in creating contracts with counterparties who are not always available. While CTV is not necessary for this, its implementation would make some stuff nicer and open up new possibilities for opening these contracts unilaterally. The two also discussed how unilateral options would work, which involves creating a payment to the counterparty paying them into an Option expiring next week that gives them the right to purchase from the sender a magnesium risk reversal contract that settles next month. Finally, they talked about how this pattern must be used in conjunction with DCFMP and PowSwap where miners could commit to 'trade specs' and an Automatic market maker inside the DCFMP could attempt to match that miner to a counterparty who wants the opposite hashrate hedge.
Updated on: 2023-06-15T03:43:34.519445+00:00