Author: Chris Belcher 2022-05-02 09:23:50
Published on: 2022-05-02T09:23:50+00:00
The concept of renting out fidelity bonds is discussed in the email conversation between ZmnSCPxj and CB. The idea is that a hodler wants to generate yield without the hassle of running a full node and yield generator. However, one downside is that the income generated is random while rent paid is fixed, so there's a chance that income won't cover the rent. CB explains that in JoinMarket, takers have checked that a fidelity bond doesn't appear twice. This technique does not deserve a section in the BIP because the BIP only specifies the wallets that hold fidelity bond UTXOs for makers, not takers that receive fidelity bond messages. He shares the code as well.ZmnSCPxj wonders if there would be an incentive to rent out fidelity bonds. They suggest using a pay-for-signature protocol now that Taproot is available, so the signature for the certificate for the usage of application can only be completed if the renter reveals a secret via a signature on another Taproot UTXO that gets them the rent for the fidelity bond. They also mention that people may offer fidelity bonds for lease without caring about its actual applications. Finally, they ask how JoinMarket clients check for fidelity bonds not being used across multiple makers and whether this technique deserves a section in the BIP.
Updated on: 2023-06-15T20:09:24.611280+00:00