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@mpryor.eth
The first trustless DEX between Bitcoin and Ethereum? https://x.com/riftdex/status/1842242143005614489?s=46
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HH
@hamud
I don't understand why a zkproof is necessary here.
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@mpryor.eth
The ZKP is necessary because the user who holds BTC on Bitcoin and wants USDT on Ethereum must prove to the smart contract on Ethereum, which controls the locking and unlocking of their USDT, that they have maintained the five invariants (pictured below).
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@mpryor.eth
And of course by doing this, you are skipping completely over CEXs like Binance and Coinbase (plus apparently it is cheaper fees) and no KYC, assuming you weren't previously doxxed with the linked addresses.
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Harris
@harris-
Yeah, you can just do a HTLC on Bitcoin
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@mpryor.eth
Is a hash based time lock better than ZK?
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Harris
@harris-
Your p2wsh spend path for eth side uses the hash of an arbitrary probably 32 byte value, and then on the eth side your smart contract verifies that the supplied value hashes to the expected value to unlock the BTC side before releasing the usdc to the BTC side seller. I implemented a basic CLI version of this approach (and many others have done similar over the years) here: https://github.com/0x330a-public/gauloi-cli-rs This is also similar to how lightning network operates but from my understanding lightning has a lot more complexity to get around design copes they made on top of this
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@mpryor.eth
That’s so neat! I appreciate you sharing all of this, and your cool code. So it would be as hard to guess as a private key? Would you still prefer ZK over this?
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Harris
@harris-
I think the zk stuff just adds additional cost and complexity. If you want to do it as a full dex or something maybe it makes sense but to just swap BTC and any evm asset you can just use this approach. There's pretty much only timing and maybe some economic attacks around if the exchanged value is less than the tx fees but the eth side gas fee is 21000 + equality checking the sender's pubkey + hashing the input + equality checking the hash + the transfer costs so pretty cheap, probably next to nothing on an L2
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