Skip to main contentOdinTrade: Trustless Cross-Chain Settlement Mechanism
Overview
OdinTrade is a decentralized, trustless cross-chain settlement protocol that enables atomic swaps between Bitcoin and EVM-compatible blockchains, starting with Ethereum. It leverages an extended Hashed Time-Locked Contract (HTLC) method to facilitate secure, efficient, and user-friendly asset exchanges without requiring intermediaries.
How It Works
1. Swap Initialization
- User Requests Swap: A user requests a price quote from the Liquidity Node.
- Liquidity Node Generates Secret: The node generates a cryptographically secure random secret (
SECRET_X) and its hash (HASH(SECRET_X)).
- Pre-Signed Claim: The user receives a pre-signed claim transaction (
UserClaimToSign), ensuring smooth execution.
2. HTLC Deployment
- Liquidity Node Locks Funds: The node creates an HTLC on
ChainOut with HASH(SECRET_X), AmountOut, and LOCKTIME_1.
- User Locks Funds: The user creates an HTLC on
ChainIn with matching parameters, ensuring atomicity.
3. Claim Process
- Liquidity Node Claims on
ChainIn: The node submits SECRET_X to claim TOKEN_IN from the Bitcoin contract.
- User Claims on
ChainOut: Once SECRET_X is revealed, user claim will be managed by the Liquidity Node thanks to the pre-signed claim transaction of the User. The User in any case can claim the funds on ChainOut since the Secret is stored on the ChainIn HTLC.
- Automatic Fallback: If unclaimed, assets revert to their original owners after the locktime expires.
Key Features
- Trustless Atomic Swaps: No reliance on third-party intermediaries.
- Pre-Signed Transactions: Reduces user interactions while maintaining security.
- Secure Locktime Mechanism: Ensures atomic execution and prevents fund loss.
- Cross-Chain Compatibility: Supports Bitcoin (UTXO) and Ethereum (Account-based).
- Efficient Liquidity Access: Sourced from Centralized Exchanges (CEXs) to provide competitive pricing.
- Seamless Integration: SDKs and APIs for wallets, DEXs, and DeFi applications.
