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From my perspective, the probability that Spark would rug users and prevent them from exiting is very low.

This is bad framing. I thought trusted 3rd parties were security holes??

It seems like developers are skirting this by saying lightning is for spending only and shouldn’t be used with large amounts.

But these apps will feel a lot of pain if Spark goes down and all the users will say see Bitcoin still sucks!!

140 sats \ 6 replies \ @k00b 17h

The trust folks place in Spark is like the trust folks place in custodians.

The trouble is they call it self-custodial. If we are classifying things in a binary custodial/noncustodial fashion, Spark is custodial imo.

So, you're right, it doesn't fix lightning permanently and when it sours like custodians did, folks will blame bitcoin.

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Agreed they should say “our app uses spark as the custodian”

And stop saying things like no-KYC

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124 sats \ 4 replies \ @ek 16h

Spark has unilateral exit, unlike custodians

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51 sats \ 3 replies \ @k00b 16h

How do you get the presigned unilateral exit transactions when you're offline and the federation receives on your behalf?

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124 sats \ 2 replies \ @ek 15h

You mean if you use a static deposit address instead of being online and creating a new address + presigned unilateral exit transaction for every deposit?

I guess in that case you need to trust that you will be able to claim your deposit.

I also don't know how unilateral exit works for lightning deposits.

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51 sats \ 1 reply \ @k00b 15h

It's all very hand wavy and no one has implemented unilateral exits in prod afaict.

And, if they are reusing addresses and moving your balance/state forward with you offline, unilateral exit relies on them not doing that when they decide to rug/shotgun kyc.

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1 sat \ 0 replies \ @ek 15h

Mhh, yeah, a sad state of affairs

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