One way to bring #DLC to the #LightningNetwork is to extend the commitment transaction.

We called it a custom output.

https://void.cat/d/W6oc7jZyjZ6rbPJ5VfJxXL.webp

When settling a #DLC, the #Lightning node doesn't need to know the specifics. It just needs to be instructed to collaboratively remove a custom output, splitting its coins in a particular way.

This is analogous to what happens when a HTLC is removed after a claimed payment.

https://void.cat/d/M5fa1GovNPxPx6Bm3Ko9DT.webp

Check out our latest blog post of the "Bringing DLCs to Lightning" series at https://10101.finance/blog/dlc-to-lightning-part-2/