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Supports Banco protocol #743

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tiero opened this issue Jan 29, 2024 · 0 comments
Open

Supports Banco protocol #743

tiero opened this issue Jan 29, 2024 · 0 comments

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@tiero
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tiero commented Jan 29, 2024

https://github.com/vulpemventures/banco

We can say this can become an experimental flag to be enabled, but could allow to provide liquidity for swaps sent privately to the daemon or to harvest for pending one in the mempool and Nostr.

Implementation possibilities

Banco Web App

The daemon serves banco web-app which is a trading form behind Tor or with https over clearnet

Nostr

  1. Daemon derives a Nostr keys and announce the trading pairs in the Nostr profile

  2. Daemon publishes a recurrent event with price and limits for each pair. kind TBD

  3. Daemon subscribe to a public kind or read NIP-04 DMs for new trade requests.

  4. he receives an address and the tap-leaf script, if accepted it can be spent even in-confirmed in a fulfill transaction

  5. The fulfill transaction will use Ocean wallet funds to pay for BTC fees and to fund the trade, plus the daemon will add an output to claim the trade contract.

Considerations

  • Serving the web-app is for sure less time-consuming than implementing Nostr as transport layer

  • The Banco protocol does not yet fully supports blinding the trader's output.

  • A proper assessment of how the swap domain has to change or most likely should become a different swap/market type. Moreover better understanding of how this will impact RPC related to market management, feeder, trade history etc..

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