lava-loans-trust-minimized-bitcoin-secured-loans-

# Lava Loans: Trust-minimized, Bitcoin-Secured Loans

shehzanmaredia | 2024-09-03 00:13:29 UTC | #1

Hey all, I had some people who are active on Delving Bitcoin suggest I post about Lava Loans here. I know many active members of Delving Bitcoin have read the paper already and given feedback (which is very much appreciated). I think for those who haven't, this might be an interesting read. 

I recently released the paper for Lava Loans, a DLC-based loans protocol, enabling more trust-minimized bitcoin-secured loans. You can find the paper here: https://github.com/lava-xyz/loans-paper/blob/960b91af83513f6a17d87904457e7a9e786b21e0/loans_v2.pdf

This is v2 of the protocol, but we're also working on v3 which involves a more scriptless design and other optimizations. For those who aren't familiar, DLCs enable oracle-based contracts for bitcoin where each contract can have it's own set of oracles, where the oracles can be blinded from the contract, and where the oracles can attest off-chain. To gain more context on DLCs, please check out this link: https://github.com/discreetlogcontracts/dlcspecs/tree/master

Happy to answer any questions.

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