https://petertodd.org/2024/covenant-dependent-layer-2-review
βSoft-Fork/Covenant Dependent Layer 2 Reviewβ
I've finally published my big article sponsored by Fulgur Ventures, analyzing all the main covenant proposals, and the L2 proposals that would use them.
tl;dr: Ark is pretty cool, and CTV is a good way to get it.
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.
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.
This is its Achilles heel. The constant churning and txn from pool to pool is going to be a turnoff
