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Library for creating and managing Discreet Log Contracts (DLC)

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cfd-dlc

Library for creating, signing and verifying signatures for Discrete Logarithm Contracts (DLC).

Building

Full build

./scripts/build.sh

Building using installed cfd library

(Faster build) Requires package config

  1. Install cfd. (on initial or update only.)

Manual install:

$git clone [email protected]:cryptogarageinc/cfd.git v0.0.24
$cmake -S . -B build
$cmake -DENABLE_SHARED=on -DENABLE_JS_WRAPPER=off -DENABLE_TESTS=off -DTARGET_RPATH=/usr/local/lib -DCMAKE_BUILD_TYPE=Release --build build
$cmake --build build --parallel 4 --config Release
$cd build && sudo make install -j 4

Run the following script to cleanup the install files: https://github.com/cryptogarageinc/cfd/blob/master/tools/cleanup_install_files.sh

Using released package (faster):

Find the appropriate release for you platform here

wget https://github.com/cryptogarageinc/cfd/releases/download/v0.0.24/cfd-v0.0.24-{yourplatform}.zip
unzip -d / cfd-v0.0.24-{yourplatform}.zip
  1. build cfd-dlc (on clean state)
./scripts/build.sh

Usage

The library includes two classes. The first and main one is DlcManager, that can be used to create, sign and verify the signatures of transactions for a DLC. The second one is DlcUtils that contain utility functions, including the ability to create oracle signatures using the Schnorr signature scheme.

Example

Preliminaries

We first start by defining all the parameters for the contract:

const Privkey ORACLE_PRIVKEY(
    "ded9a76a0a77399e1c2676324118a0386004633f16245ad30d172b15c1f9e2d3");
const Pubkey ORACLE_PUBKEY = ORACLE_PRIVKEY.GeneratePubkey();
const Privkey ORACLE_K_VALUE(
    "be3cc8de25c50e25f69e2f88d151e3f63e99c3a44fed2bdd2e3ee70fe141c5c3");
const std::vector<Pubkey> ORACLE_R_POINTS = {
    DlcUtil::GetSchnorrPublicNonce(ORACLE_K_VALUE)};
const ByteData ORACLE_SIGNATURE(
    "8a820c2a94e3f85362c457b80cff914b13fbbd67df49df24181f3b916331a2e6");
const Privkey LOCAL_FUND_PRIVKEY(
    "0000000000000000000000000000000000000000000000000000000000000001");
const Pubkey LOCAL_FUND_PUBKEY = LOCAL_FUND_PRIVKEY.GeneratePubkey();
const Privkey REMOTE_FUND_PRIVKEY(
    "0000000000000000000000000000000000000000000000000000000000000002");
const Pubkey REMOTE_FUND_PUBKEY = REMOTE_FUND_PRIVKEY.GeneratePubkey();
const Privkey LOCAL_SWEEP_PRIVKEY(
    "0000000000000000000000000000000000000000000000000000000000000003");
const Pubkey LOCAL_SWEEP_PUBKEY = LOCAL_SWEEP_PRIVKEY.GeneratePubkey();
const Privkey REMOTE_SWEEP_PRIVKEY(
    "0000000000000000000000000000000000000000000000000000000000000004");
const Pubkey REMOTE_SWEEP_PUBKEY = REMOTE_SWEEP_PRIVKEY.GeneratePubkey();
const Privkey LOCAL_INPUT_PRIVKEY(
    "0000000000000000000000000000000000000000000000000000000000000005");
const Pubkey LOCAL_INPUT_PUBKEY = LOCAL_INPUT_PRIVKEY.GeneratePubkey();
const Privkey REMOTE_INPUT_PRIVKEY(
    "0000000000000000000000000000000000000000000000000000000000000006");
const Pubkey REMOTE_INPUT_PUBKEY = REMOTE_INPUT_PRIVKEY.GeneratePubkey();
const Amount LOCAL_INPUT_AMOUNT = Amount::CreateByCoinAmount(50);
const Amount REMOTE_INPUT_AMOUNT = Amount::CreateByCoinAmount(50);
const Amount LOCAL_COLLATERAL_AMOUNT = Amount::CreateBySatoshiAmount(100000000);
const Amount REMOTE_COLLATERAL_AMOUNT =
    Amount::CreateBySatoshiAmount(100000000);
const Amount FUND_OUTPUT = Amount::CreateBySatoshiAmount(200000312);
const Amount WIN_AMOUNT = Amount::CreateBySatoshiAmount(199900000);
const Amount LOSE_AMOUNT = Amount::CreateBySatoshiAmount(100000);
const std::vector<std::string> WIN_MESSAGES = {"WIN"};
const std::vector<std::string> LOSE_MESSAGES = {"LOSE"};
const std::vector<TxIn> LOCAL_INPUTS = {TxIn(
    Txid("83266d6b22a9babf6ee469b88fd0d3a0c690525f7c903aff22ec8ee44214604f"), 0,
    0)};
const std::vector<TxIn> REMOTE_INPUTS = {TxIn(
    Txid("bc92a22f07ef23c53af343397874b59f5f8c0eb37753af1d1a159a2177d4bb98"), 0,
    0)};
const Address LOCAL_CHANGE_ADDRESS(
    "bcrt1qlgmznucxpdkp5k3ktsct7eh6qrc4tju7ktjukn");
const Address REMOTE_CHANGE_ADDRESS(
    "bcrt1qvh2dvgjctwh4z5w7sc93u7h4sug0yrdz2lgpqf");
const Address LOCAL_FINAL_ADDRESS(
    NetType::kRegtest, WitnessVersion::kVersion0,
    Privkey("0000000000000000000000000000000000000000000000000000000000000007")
        .GeneratePubkey());
const Address REMOTE_FINAL_ADDRESS(
    NetType::kRegtest, WitnessVersion::kVersion0,
    Privkey("0000000000000000000000000000000000000000000000000000000000000008")
        .GeneratePubkey());
const uint32_t MATURITY_TIME = 1579072156;
const std::vector<DlcOutcome> OUTCOMES = {{WIN_MESSAGES, WIN_AMOUNT, LOSE_AMOUNT},
                                    {LOSE_MESSAGES, LOSE_AMOUNT, WIN_AMOUNT}};
const uint32_t FEE_RATE = 1

Transactions creation

We can then generate the fund transaction, Contract Execution Transactions (CETs) and the refund transaction:

  auto dlc_transactions = DlcManager::CreateDlcTransactions(
      OUTCOMES, ORACLE_PUBKEY, ORACLE_R_POINTS, LOCAL_FUND_PUBKEY,
      REMOTE_FUND_PUBKEY, LOCAL_SWEEP_PUBKEY, REMOTE_SWEEP_PUBKEY,
      LOCAL_CHANGE_ADDRESS, REMOTE_CHANGE_ADDRESS, LOCAL_FINAL_ADDRESS,
      REMOTE_FINAL_ADDRESS, LOCAL_INPUT_AMOUNT, LOCAL_COLLATERAL_AMOUNT,
      REMOTE_INPUT_AMOUNT, REMOTE_COLLATERAL_AMOUNT, DELAY, LOCAL_INPUTS,
      REMOTE_INPUTS, FEE_RATE, MATURITY_TIME);

Signing

Next both parties sign the refund transaction:

  auto refund_tx = dlc_transactions.refund_transaction;
  auto local_refund_signature = DlcManager::GetRawRefundTxSignature(
      refund_tx, LOCAL_FUND_PRIVKEY, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
      FUND_OUTPUT, FUND_TX_ID, 0);

  auto remote_refund_signature = DlcManager::GetRawRefundTxSignature(
      refund_tx, REMOTE_FUND_PRIVKEY, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
      FUND_OUTPUT, FUND_TX_ID, 0);

  DlcManager::AddSignaturesToRefundTx(
      &refund_tx, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
      {local_refund_signature, remote_refund_signature}, FUND_TX_ID, 0);

Both parties also sign all the CETs:

  for (auto cet : dlc_transactions.cets) {
    auto local_cet_signature = DlcManager::GetRawCetSignature(
        cet, LOCAL_FUND_PRIVKEY, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
        FUND_OUTPUT, FUND_TX_ID, 0);
    auto remote_cet_signature = DlcManager::GetRawCetSignature(
        cet, REMOTE_FUND_PRIVKEY, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
        FUND_OUTPUT, FUND_TX_ID, 0);
    DlcManager::AddSignaturesToCet(
        &cet, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
        {local_cet_signature, remote_cet_signature}, FUND_TX_ID, 0);
  }

And finally they sign the fund transaction:

  auto fund_tx = dlc_transactions.fund_transaction;
  DlcManager::SignFundingTransactionInput(&fund_tx, LOCAL_INPUT_PRIVKEY,
                                          LOCAL_INPUTS[0].GetTxid(), 0,
                                          LOCAL_INPUT_AMOUNT);
  DlcManager::SignFundingTransactionInput(&fund_tx, REMOTE_INPUT_PRIVKEY,
                                          REMOTE_INPUTS[0].GetTxid(), 0,
                                          REMOTE_INPUT_AMOUNT);

Note that the GetRawFundingTransactionInputSignature method can be used to get the raw signature instead of signing the transaction directly.

Mutual Closing

At contract maturity, they can chose to create and sign a mutual closing transaction:

  auto mutual_closing_tx = DlcManager::CreateMutualClosingTransaction(
      LOCAL_FINAL_ADDRESS, REMOTE_FINAL_ADDRESS,
      Amount::CreateBySatoshiAmount(WIN_AMOUNT),
      Amount::CreateBySatoshiAmount(LOSE_AMOUNT), FUND_TX_ID, 0);
  auto local_signature = DlcManager::GetRawMutualClosingTxSignature(
      mutual_closing_tx, LOCAL_FUND_PRIVKEY, LOCAL_FUND_PUBKEY,
      REMOTE_FUND_PUBKEY, FUND_OUTPUT, FUND_TX_ID, 0);
  auto remote_signature = DlcManager::GetRawMutualClosingTxSignature(
      mutual_closing_tx, REMOTE_FUND_PRIVKEY, LOCAL_FUND_PUBKEY,
      REMOTE_FUND_PUBKEY, FUND_OUTPUT, FUND_TX_ID, 0);
  DlcManager::AddSignaturesToMutualClosingTx(
      &mutual_closing_tx, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
      {local_signature, remote_signature}, FUND_TX_ID, 0);

Note that they can recover some unspent fee by using the mutual closing transaction, we ignored this here.

Refund Case

If the oracle doesn't publish the outcome, they can sign the refund transaction:

  auto local_signature = DlcManager::GetRawRefundTxSignature(
      refund_tx, LOCAL_FUND_PRIVKEY, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
      FUND_OUTPUT, FUND_TX_ID, 0);
  auto remote_signature = DlcManager::GetRawRefundTxSignature(
      refund_tx, REMOTE_FUND_PRIVKEY, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
      FUND_OUTPUT, FUND_TX_ID, 0);
  DlcManager::AddSignaturesToRefundTx(
      &refund_tx, LOCAL_FUND_PUBKEY, REMOTE_FUND_PUBKEY,
      {local_signature, remote_signature}, FUND_TX_ID, 0);

Unilateral Close

Finally, in case of a unilateral close of the contract, the party closing will need to create and sign a closing transaction corresponding to the outcome signed by the oracle.

  auto closing_tx = DlcManager::CreateClosingTransaction(
      LOCAL_FINAL_ADDRESS, WIN_AMOUNT, CET_ID, 0);

  DlcManager::SignClosingTransactionInput(
      &closing_tx, LOCAL_FUND_PRIVKEY, LOCAL_SWEEP_PUBKEY, REMOTE_SWEEP_PUBKEY,
      ORACLE_PUBKEY, ORACLE_R_POINTS, WIN_MESSAGES, DELAY, {ORACLE_SIGNATURE},
      input_amount, CET_ID, 0);

Note that you can generate an oracle signature using DlcUtil::SchnorrSign function.