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Protocol Flow

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Overview

The OdinTrade protocol follows a carefully orchestrated sequence of steps to ensure secure and atomic cross-chain swaps. Here’s a detailed breakdown of the process.

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1. Swap Initialization

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Important Note on Execution Flow

It’s important to clarify a key aspect of the atomic swap execution flow. The first on-chain interaction involves the creation of the Liquidity Node’s HTLC, which locks the amountOut that the user expects to receive. At this stage, the user is shown a current estimation of the required amountIn for the swap. However, this value may change, as it depends on dynamic factors such as exchange rates and network fees. The actual amountIn that the user must deposit into their own HTLC is only finalized at the moment their HTLC is created.

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Price Quote Request

1. User requests swap quote from Liquidity Node
2. Specifies desired token pair and amount
3. Receives current exchange rate

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Secret Generation

1. Liquidity Node generates SECRET_X
2. Computes HASH(SECRET_X) using SHA-256
3. Securely stores both values

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Pre-Signed Transaction

1. Liquidity Node creates UserClaimToSign
2. User receives and verifies claim transaction
3. User signs claim for future execution

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2. Contract Deployment

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Liquidity Node HTLC

1. Deploys HTLC on ChainOut
2. Includes:
   • HASH(SECRET_X)
   • AmountOut
   • LOCKTIME_1
3. Monitors for confirmation

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User HTLC

1. Creates HTLC on ChainIn
2. Matches HASH(SECRET_X)
3. Sets LOCKTIME_2 (where L2 < L1)
4. Sends to Liquidity Node for broadcasting

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3. Claim Process

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Liquidity Node Claims

1. Monitors ChainIn for HTLC confirmation
2. Reveals SECRET_X to claim TOKEN_IN
3. Transaction executes if hash matches

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User Claims

1. SECRET_X becomes public on ChainIn
2. Liquidity Node broadcasts pre-signed user claim
3. User can manually claim if needed

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4. Settlement & Completion

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Successful Completion

1. Liquidity Node receives TOKEN_IN
2. User receives TOKEN_OUT
3. Both HTLCs are marked as executed

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Fallback Scenarios

1. Timeout on ChainIn:
   • User reclaims funds after L2
   • No action needed from Liquidity Node
2. Timeout on ChainOut:
   • Liquidity Node reclaims after L1
   • Only possible if ChainIn claim failed

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Transaction Flow Summary

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Monitoring and Verification

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Status Tracking

• Monitor transaction confirmations
• Track HTLC states
• Verify hash commitments

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Error Handling

• Network congestion management
• Transaction retry mechanisms
• Fallback procedures

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Completion Verification

• Confirm both HTLCs executed
• Verify token transfers
• Update swap status