Nostr Web Client

I don't understand this part

> On the other hand, if the user waits until the last moment8, the cost could be nearly zero, at the risk of missing the expiration time.

How can it be zero? The ASP will take that 0.23% upfront as a fee for the service of providing liquidity.

Peter Todd 1y ago

If the V-UTXO is about to expire, the ASP will get their liquidity back soon; if they're borrowing liquidity they don't need to borrow it for very long.

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Discussion

𝖋𝖎𝖆𝖙𝖉𝖊𝖓𝖎𝖊𝖗 (¯`◕‿◕´¯) 1y ago

This is its Achilles heel. The constant churning and txn from pool to pool is going to be a turnoff

Pip the WoT guy 1y ago

I get it, but the user will have to pay when opening that VTXO, so it's always that 0.23%, no?

Peter Todd 1y ago

Nope.

Think of it this way: the ASP is loaning you money. But when they get the money back is not at the end of the next V-UTXO expiry: it's when the current V-UTXO expires.