Peer-to-peer derivatives on Bitcoin
Bitcoin going up? You want to open a buy position! Bitcoin going down? You want to open a sell position! Chose the CFD terms that suit you and open your position.
You set up the DLC with a maker peer to peer. No platform will ever know your keys, you sign all transactions locally on your machine. No account, just you and your keys.
After successful setup the client publishes the DLC on the Bitcoin blockchain. There is no custodian - the Bitcoin are locked on chain until price publication by an Oracle.
Upon price publication by a 3rd party oracle you can settle the contract. Due to the oracle being a 3rd party service neither of the trading partners can cheat. If things go wrong, you can refund after a timelock expires.
With the price signed by the Oracle you can settle on chain to retrieve your profit - or simply roll over for another term to keep the contract going.
