This method involves the use of covenant emulators and signing servers, which marks a departure from previous strategies for covenant emulation. The key feature of this approach is the requirement for oracle signers to deposit bonds with BitVM auditors. These deposits are at risk under a BITVM style fraud proof system; should an oracle signer authorize a transaction that breaches the covenant rules, their funds are susceptible to confiscation. This mechanism aims to ensure adherence to the covenant conditions by imposing a financial penalty for violations.

For those interested in exploring this concept further, the detailed explanation and framework of this approach are accessible through a paper available online. The document provides comprehensive insights into how Bitcoin covenants can be enforced without direct modifications to the protocol, thereby offering a novel solution to the community. The full paper can be accessed at https://rubin.io/bitcoin/2024/11/26/unfed-covenants/, offering an in-depth view of the proposed system and its operational mechanics.