Hello, I am working on a blog post about different two-way bitcoin peg mechanisms. I have some questions that I have not been able to find answers for. Perhaps someone in the community here who is more knowledgeable than I am can help?
- Custodians are required to be bonded, and if their collateral dips below a certain value then the bond is liquidated.
Who runs the oracle that is used to determine the collateral value, what is the incentive for this oracle to report correct values, and how often does the oracle report values to the Bond contract?
- Custodian must deposit 150% of the value that they take custody of into the Bond contract in ETH or ERC-20 tokens.
Who determines what the accepted collateral types are? How is this person/entity selected?
- On the topic of pCoin redemption, I found a blog post that says it takes at most 12 hours to redeem a pCoin for a public coin.
Redeeming a pCoin is pretty straightforward. The user initiates a redeem transaction, which burns the pCoin and instructs the custodian to send the public coin back to the user by a deadline. The deadline is initially set at 12 hours from the time the redeem transaction is initiated .
However that seems like a worst case scenario. What is the best-case scenario redemption time for a pBTC redemption? i.e. if I submit a transaction to turn pBTC back into mainchain BTC, what is the normal amount of time (in block time or human time) that I should expect this transaction to take to complete?