lightning-dev
Liquidity Ads and griefing subtleties
Posted on: December 1, 2023 22:42 UTC
The email suggests a policy for handling transactions where the first 10,000 satoshis (sats) from the seller are bound with a CheckLockTimeVerify (CLTV), which is a time constraint for spending these funds.
Any amount exceeding this threshold would be processed as a standard transaction without the CLTV restriction. The proposed mechanism outlines that any outgoing Hashed Time-Locked Contracts (HTLCs) from the seller should prioritize depleting the standard output before utilizing the CLTV-bound funds. In cases where the HTLCs fail and the funds are returned, they should replenish the CLTV output up to its 10k sats cap before flowing back into the normal output.
The feasibility of exploiting this system by either party appears unlikely, according to the sender's analysis. Additionally, there is a consideration regarding the application of lease timelocks on HTLC outputs. Although not fully detailed in the email, it is mentioned that the current proposal under discussion suggests capping the total value of in-flight HTLCs, which theoretically should minimize risk for both the buyer and seller regardless of whether HTLC outputs have a specific timelock policy or not. This measure could serve as a safeguard against excessive exposure from simultaneous unsettled transactions.