April 15, 2022
Syvita and DLC.Link Case Study
For Non-Custodial Stacks Mining Pool
The current architecture for the Syvita Stacks Mining Pools leverages DLC technology as a way to enable smart Bitcoin transactions that are secure and trustless. It is also a requirement that the pool participants’ funds be held non-custodially, to reduce regulatory overhead.
DLC.Link can provide the management and integrations from Clarity smart contracts to a trusted DLC oracle server solution. DLC.Link integrates closely with the Stacks blockchain, and can provide DLC management controlled by transactions on the Stacks blockchain through Clarity.
Example
10 miners (pool participants who stake Bitcoin to earn STX rewards)
each lock .5 Bitcoin into several DLCs (one per user) with the Bitcoin Lender.
The Lender loans 5 Bitcoin to the Syvita Protocol from their own source of funds. Syvita uses this Bitcoin to mine new STX.
When mining is complete, the mined STX rewards are transferred to the individual miners who locked Bitcoin into the DLC with the Lender. When the STX rewards are transferred, the DLC.Link smart contract should (either automatically or manually) notify the DLC Oracle servers that the DLC should be closed. This finalizes the transfer of each .5 Bitcoin (plus interest) as repayment to the lender.
Syvita needs DLCs (Discreet Log Contracts) created, one for each . This should be done in a non-custodial way, as to simplify regulatory requirements.
