Author: ZmnSCPxj 2022-10-11 11:23:38
Published on: 2022-10-11T11:23:38+00:00
In this email exchange, the topic of forwarding offchain-to-onchain swap protocol is discussed. The first sub-protocol, onchain-to-offchain, is forwardable but the second one poses a problem due to the prepayment feature in currently deployed swap servers like lightning loop and boltz. This feature requires the initiator to pay a small off-chain fee to the swap server for them to make an onchain transaction. However, this works only because these servers are not pseudonymous, so users put some trust into them. In contrast, there is a risk that after paying the prepayment, the responder might ignore and take no action. The suggestion made to avoid this problem is to pay the DoS prevention fee with an onchain transaction through a Payjoin transaction made by both the initiator and the responder. This makes the prepayment and the responder's duty atomic. Additionally, there is an anonymity bonus that Payjoin brings. The offchain-to-onchain swap protocol is intended to be used by end-users to pay onchain when all their funds are in a Lightning channel. However, in some cases, the end-user may not have any onchain funds to payjoin into the onchain HTLC. Hence, they need to swap it out to onchain, leading to a catch-22 situation.
Updated on: 2023-06-03T10:15:36.733169+00:00