DLC (Discreet Log Contracts) Implementation

Overview

Anya's DLC implementation provides a robust framework for creating and managing Bitcoin-based smart contracts using the Discreet Log Contracts protocol. This implementation follows the latest DLC specifications while adding enterprise-grade features and security.

Core Features

Contract Types

Oracle Support

Implementation Details

Contract Creation

pub async fn create_dlc_contract(
    contract_params: DLCContractParams,
    oracle_info: OracleInfo,
    funding_inputs: Vec<UTXO>,
) -> Result<DLCContract, DLCError> {
    // Implementation details
}

For implementation details, see Contract Creation Guide.

Oracle Integration

pub struct OracleInfo {
    pub public_key: PublicKey,
    pub announcement: OracleAnnouncement,
    pub signature_point: Point,
}

pub async fn verify_oracle_announcement(
    announcement: &OracleAnnouncement,
) -> Result<bool, OracleError> {
    // Implementation details
}

For oracle details, see Oracle Integration Guide.

Contract Lifecycle

1. Setup Phase

// Create contract parameters
let params = DLCContractParams::new()
    .with_outcomes(outcomes)
    .with_collateral(collateral)
    .with_timeout(timeout);

// Initialize contract
let contract = DLCContract::new(params)?;

For setup details, see Contract Setup Guide.

2. Negotiation Phase

// Offer contract
let offer = contract.create_offer()?;

// Accept offer
let accepted = contract.accept_offer(offer)?;

For negotiation details, see Contract Negotiation Guide.

3. Execution Phase

// Execute contract based on oracle outcome
let outcome = oracle.get_outcome()?;
let execution = contract.execute(outcome)?;

For execution details, see Contract Execution Guide.

Security Features

Key Management

// Generate secure keys
let contract_keys = DLCKeyPair::new_secure()?;

// Backup keys
contract_keys.backup_to_encrypted_file("backup.enc", password)?;

For security details, see:

Validation

// Validate contract parameters
contract.validate_parameters()?;

// Verify oracle signatures
oracle.verify_signatures(announcement)?;

For validation details, see Contract Validation Guide.

Advanced Features

Multi-Oracle Support

pub struct MultiOracleConfig {
    oracles: Vec<OracleInfo>,
    threshold: u32,
    timeout: Duration,
}

impl DLCContract {
    pub fn with_multiple_oracles(
        config: MultiOracleConfig
    ) -> Result<Self, DLCError> {
        // Implementation
    }
}

For multi-oracle details, see Multi-Oracle Guide.

Custom Outcomes

pub enum OutcomeType {
    Binary(bool),
    Numeric(u64),
    Range(RangeInclusive<u64>),
    Custom(Box<dyn Outcome>),
}

For custom outcome details, see Custom Outcomes Guide.

Error Handling

Common Errors

pub enum DLCError {
    InvalidParameters(String),
    OracleUnavailable(OracleError),
    InsufficientFunds(Amount),
    ValidationFailed(String),
    ExecutionFailed(String),
}

For error handling details, see:

Error Recovery

match contract.execute(outcome) {
    Ok(result) => // Handle success
    Err(DLCError::OracleUnavailable(_)) => {
        // Use fallback oracle
        let fallback_outcome = fallback_oracle.get_outcome()?;
        contract.execute(fallback_outcome)
    }
    Err(e) => // Handle other errors
}

Testing

Unit Tests

#[test]
fn test_dlc_creation() {
    let contract = create_test_contract();
    assert!(contract.is_valid());
}

Integration Tests

#[tokio::test]
async fn test_complete_flow() {
    let oracle = setup_test_oracle().await?;
    let contract = create_test_contract(oracle).await?;

    // Test full contract lifecycle
    contract.offer()?;
    contract.accept()?;
    contract.execute()?;
}

For testing details, see:

Support

For DLC-related support:

Last updated: 2025-06-02