Author: ZmnSCPxj 2019-01-08 23:01:35
Published on: 2019-01-08T23:01:35+00:00
ZmnSCPxj discussed the problem with David's proposed solution, which effectively makes the exchange node (OM) also the RM in the route. The issue is that when the payee (S) is paid via the delta from its incoming to its outgoing HTLC on that loop, if the RM is the OM then it is possible for the OM to steal the payment outright. ZmnSCPxj explained that an intermediate node who is also the end payee can shortcut the payment by accepting the payment on the intermediate node instead of forwarding it. ZmnSCPxj proposed a solution requiring the trusted role RM, and participants have to be somewhat careful which RMs they do business with. He explained that by creating the role of RM, American Call Options pay a premium. This is equivalent to paying a premium. This at least fixes the problem that OT no longer is capable of getting premium-free American Call Options. But notice who the premium is paid *to*. It is paid to RM. It is not paid to OM, who is the one who loses if the American Call Option is exercised.
Updated on: 2023-06-02T16:23:01.778633+00:00