Announcing Superposition and Note Duel, our first two DLC experiments \ stacker news ~bitcoin

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Announcing Superposition and Note Duel, our first two DLC experiments blog.mutinywallet.com/note-duel-superposition/

10.3k sats \ 6 comments \ @benthecarman 26 Jan bitcoin

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810 sats \ 0 replies \ @ek 26 Jan freebie

Did you just create a prediction market on nostr without ever mentioning prediction markets?

update: okay, it's maybe a stretch to call these note duels prediction markets since there is no trading involved

but sounds very interesting nonetheless. and looks like a very important primitive 👀

100 sats \ 1 reply \ @orangecrush 27 Jan

This is going to be fun. Looking forward to the growth of attestation bots, attestation validator bots, and attestation validator validator bots. Are these kind-1 notes? Do you see a need for segregated relays that provide these notes?

0 sats \ 0 replies \ @benthecarman OP 27 Jan

The notes in note duel are kind 1, the DLC oracle events are not, you can check the WIP spec here: https://github.com/nostr-protocol/nips/pull/919

Do you see a need for segregated relays that provide these notes?

No, we are just broadcasting them on standard relays

0 sats \ 2 replies \ @conduition 28 Jan

So the next evolution will be to use Fedimint for DLCs to enable smaller, and even more private bets.

@benthecarman Why wait for fedimint? You can enable off-chain DLCs using lightning today with an untrusted market maker (which could be mutiny).

121 sats \ 1 reply \ @benthecarman OP 28 Jan

because lightning DLCs don't really make practical sense imo, you need a central market maker that is extremely capital intensive, p2p bets arent really practical because they need a channel with their counterparty, to route them we need PTLCs which is a far ways away

100 sats \ 0 replies \ @conduition 29 Jan freebie

p2p bets arent really practical because they need a channel with their counterparty, to route them we need PTLCs which is a far ways away

Agreed on that point. I ~~wasted~~ spent wayyy too much time thinking about how to make P2P DLCs practical. I think SuredBits has something cooking with Barrier Escrows but it's still a lot of work to get right.

you need a central market maker that is extremely capital intensive

With the approach linked above, it's not capital intensive at all. The market maker has to front the full value of the DLC (on-chain), but they're immediately paid back (off-chain) when the participants buy in via lightning. Fees can be charged to account for no-shows.