sBTC Design - Peg-In UTXO Consolidation to a Single UTXO #343
Replies: 6 comments
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Currently under investigation by @soju-drinker. |
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This is now a research discussion post around the details of the wallet peg-in requests such that after any bitcoin block there is a single UTXO to the peg wallet. The decision to have a single UTXO to the peg-in wallet is a simplification of part of the SIP-025 protocol proposal that results in higher peg-in fees but a more robust system with clearer transaction fee ownership. After discussions on 11/01/2023 we've decided that the simplest solution to paying for the consolidation of wallet peg-in UTXOs is to have every peg-in request pay for both the transaction and the inevitable fee of collating the peg-in transactions into a single transaction, wherein that additional fee is used instantly to pay for transaction consolidation. This means that the peg-in requests will cost approximately twice the transaction fee that the equivalent transfer would cost on the bitcoin blockchain as it will need to pay for roughly twice the data to be stored on the bitcoin blockchain. |
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The benefits of requiring a consolidation on every deposit are as follows:
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This is awesome Jude ! If I understand correctly the signers need to sign each deposit (plus the current UTXO in with their peg wallet) and spend this back to their peg wallet with the new op_return ? Two questions:
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@friedger 's suggestion to repurpose miner PoX btc burns to the peg wallet in order to offset fees might also be a consideration here. in that it will introduce new utxos which are not redeeming deposits. |
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@radicleart, @soju-drinker, @friedger what additional information do we need to ascertain here to scope out this work? Do we need some kind of flow diagram? |
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This is a discussion that contains the design document for how the transfer handoff will be implemented for SIP-025, especially regarding to edge cases collating utxos.
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