BitDEX: Building a Decentralized BitMEX Using Priceless Financial Contracts by Hart Lambur (Devcon5)

Fri, Oct 2, 2020, 12:00 AM

Visit the https://archive.devcon.org/ to gain access to the entire library of Devcon talks with the ease of filtering, playlists, personalized suggestions, decentralized access on IPFS and more. https://archive.devcon.org/archive/watch/5/building-a-decentralized-bitmex-using-an-optimistic-financial-contract-ofc-framework-new-tools-for-fast-and-secure-financial-contracts-on-ethereum We introduce the Optimistic Financial Contract (OFC) framework, a novel approach to financial contract design that allows for hyper fast, secure, and scalable DeFi contracts *without* requiring an on-chain price feed. This framework makes it easy for developers to build otherwise complex synthetic financial derivatives on Ethereum. We show how this design can be used to build a decentralized derivatives exchange (aka BitMEX) that can be as performant as the centralized alternatives. How it works: optimistic contracts work by assuming contract participants will act optimistically to avoid penalties. This formalization borrows heavily from Plasma and state channel research. “Long” contract participants enforce that “shorts” remargin contracts on a timely basis (and vice versa). Surprisingly, no on-chain price feed is required—an oracle is *only* needed to resolve disputes in what is conceptually similar to Plasma’s exit games. This simple framework works at both the L1 and L2 levels and can be extended to create almost any type of financial contract developers can imagine. Speaker(s): Hart Lambur, Allison Lu Skill level: intermediate Track: Developer Infrastructure Keywords: technical Follow us: https://twitter.com/efdevcon, https://twitter.com/ethereum Learn more about devcon: https://www.devcon.org/ Learn more about ethereum: https://ethereum.org/ Devcon is the Ethereum conference for developers, researchers, thinkers, and makers. Devcon 5 was held in Osaka, Japan on Oct 8 - 11, 2019. Devcon is organized and presented by the Ethereum Foundation, with the support of our sponsors. To find out more, please visit https://ethereum.foundation/