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Fidelity bond typo fix #961

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merged 3 commits into from
Aug 3, 2021
Merged

Fidelity bond typo fix #961

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87f36c2
Fix error in simplified equation in fidelity-bond
chris-belcher Aug 3, 2021
cea80e2
Suggest use of coin control in fidelity-bond.md
chris-belcher Aug 3, 2021
a090293
Emphasize the sybil protection gained by takers
chris-belcher Aug 3, 2021
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9 changes: 6 additions & 3 deletions docs/fidelity-bonds.md
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Expand Up @@ -32,8 +32,8 @@ bonds](https://gist.github.com/chris-belcher/18ea0e6acdb885a2bfbdee43dcd6b5af/)

## How to use fidelity bonds as a taker

In JoinMarket version v0.9 or later takers will by default use fidelity bonds
without any input needed from the user.
In JoinMarket version v0.9 or later takers will by default use fidelity bonds. The user gains
very strong protection from sybil attacks without needing to do anything different.

The orderbook watcher script now displays information about any fidelity bonds
advertised by makers, as well as calculating how strong the system is against
Expand Down Expand Up @@ -104,6 +104,9 @@ then either, mix afterwards as well. If your timelocked address expires and you
coins to another timelocked address then you don't need to mix in between, because no
privacy-relevant information linked to you has been leaked.

This can all be done with `sendpayment.py` and coin control (i.e. freezing the UTXOs that you dont
want to spend).

### Obtaining time-locked addresses

The `wallet-tool.py` script supports a new method `gettimelockaddress` used for
Expand Down Expand Up @@ -163,7 +166,7 @@ You must spend them from JoinMarket itself.
Fidelity bonds UTXOs are valuable as soon as they confirmed. The simplified formula for a fidelity
bond value with locked coins is:

bond_value = (locked_coins * exp(interest_rate * locktime))^2
bond_value = (locked_coins * (exp(interest_rate * locktime) - 1))^2

A few important things to notice:
* The bond value goes as the _square_ of sacrificed value. For example if your sacrificed value is
Expand Down