Atomic Liquidations for Bitcoin Vaults
A new article by Sylvain Saurel discusses BitVM and its approach to enabling complex computation on Bitcoin without modifying the base layer.
gobob.xyz/blog
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Atomic Liquidations for Native Bitcoin Vaults via Onchain Market Making.
We present a protocol that restores partial and atomic liquidations. Partial liquidations are achieved through setting up parallel spending routes on native BTC vaults to liquidate portions of a vault. Atomicity is unlocked by decoupling liquidator execution from BTC settlement, using an (onchain) market maker (OMM) that borrows bridged BTC (wBTC, cbBTC, …) against vault claims. Flash loan liquidations execute instantly while BTC settlement occurs asynchronously.