lptOrderBook

Overview

lptOrderBook is a mechanism to allows a buyer and a seller to commit to a deal which involves the seller delivering Livepeer Tokens (LPT) before an agreed block height of Ethereum's blockchain.

Context

Livepeer Token (LPT) is an ERC-20 Token on Ethereum. Livepeer's Protocol rewards LPT holders for bonding (staking, delegating) tokens to Livepeer's Network. For a holder to transfer their bonded LPT to another address, they must unbond and wait for an unbonding period.

The holder receives no rewards for the tokens that are unbonding.

Dai Stablecoin v1.0 (DAI) is another ERC-20 Token on Ethereum.

Context and Objectives

Alice has LPT, which is bonded to a node in Livepeer's network, and is earning Rewards and Fees. Alice also has DAI.

Bob has DAI.

Alice would like to exchange x LPT for y DAI.

Bob would like to exchange y DAI for x LPT.

Alice would like to be certain that they will receive y DAI before they unbond x LPT and waits for the unbonding period to lapse.

Use Cases

Scenario 1 - Failure

1. Alice creates the order:

• Defines x - the amount of LPT that Alice will provide
• Defines y - the amount of DAI Alice will receive in exchange for x LPT
• Defines p - the block by which Alice promises to provide the LPT
• Sends z DAI - a deposit which Alice will put at risk if she doesn't provide x LPT by block p

2. Alice cancels the order, and withdraws z DAI

Scenario 2 - Failure

1. Alice creates the order:

• Defines x - the amount of LPT that Alice will provide
• Defines y - the amount of DAI Alice will receive in exchange for x LPT
• Defines p - the block by which Alice promises to provide the LPT
• Sends z DAI - a deposit which Alice will put at risk if she doesn't provide x LPT by block p

2. Bob fills the order, sending y DAI.

3. Block p is mined

4. Bob withdraws y + z DAI

Scenario 3 - Success

1. Alice creates the order:

• Defines x - the amount of LPT that Alice will provide
• Defines y - the amount of DAI Alice will receive in exchange for x LPT
• Defines p - the block by which Alice promises to provide the LPT
• Sends z DAI - a deposit which Alice will put at risk if she doesn't provide x LPT by block p

2. Bob fills the order, sending y DAI.

Independently of this process, Alice unbonds x LPT, and waits for the unbonding period before withdrawing.

3. Alice sends x LPT, and receives y + z DAI. Bob receives x LPT.