Liquidity griefing for 0-conf dual-funded txs [combined summary]



Individual post summaries: Click here to read the original discussion on the lightning-dev mailing list

Published on: 2023-06-07T09:46:36+00:00


Summary:

The discussion revolves around the challenges and potential solutions for liquidity griefing attacks in dual-funded transactions within the Lightning Network. One proposed solution is to never lock UTXOs used in dual-funded transactions, allowing them to be automatically reused if a remote node goes silent. However, this approach is not suitable for 0-conf channels, as accidental double-spending can result in fund loss.To address these issues, suggestions include implementing a "soft lock" when selecting UTXOs for non 0-conf funding attempts, disabling inbound payments, or using a longer `cltv_expiry_delta` to mitigate the impact of mempool fee spikes on 0-conf chain confirmations. Additionally, exploring solutions such as the Staking Credentials framework, which imposes fees and introduces privacy-preserving credentials, can protect against griefing attacks.The email also highlights the importance of isolating utxos used for 0-conf channels from those used for non 0-conf channels to avoid race scenarios and accidental double-spending. The current implementation of Eclair utilizes opportunistic 0-conf but faces challenges when attempting to mix both 0-conf and non 0-conf funding attempts due to soft-locked utxos.Overall, the discussion emphasizes the need to address mempool pinning issues and liquidity griefing in lightning network transactions. Implementing effective solutions is crucial in order to protect against these vulnerabilities and enhance the user experience in using 0-conf channels.


Updated on: 2023-08-01T01:12:27.686617+00:00