Covenants and feebumping



Summary:

In a conversation between Antoine and ZmnSCPxj, they discuss the use of a signature challenge to ensure the uptime of hot contracts. However, this method has downsides, such as the need to presign multiple versions of a transaction with varying feerates and the risk of third-party trust. ZmnSCPxj suggests using a DLC oracle to provide a set of points corresponding to a set of feerate ranges, committing to publishing the scalar of one of those points at a future block height. Adaptor signatures are created for each feerate version, and these can only be completed if the DLC oracle publishes the corresponding scalar. Multiple watchtowers can then be sent the adaptor signatures, preventing any of them from publishing the highest-feerate version. However, there are still some drawbacks, such as third-party trust, time-bound DLCs, and the inability to invoke the oracle at any time for hot dynamic protocols.


Updated on: 2023-06-15T18:15:27.247718+00:00