Why does Gamma use on-chain unlistings with fees?
We've been asked by many users why listings do not require an on-chain network or "gas" fee, but unlistings require one.
We want to be clear that Gamma does not charge users to unlist items, or take any part of this unlist network fee. On-chain unlistings are crucially important for user safety, and to ensure our solution is truly trustless.
This article will discuss the dangers of off-chain unlistings without network fees, and why trustless solutions are essential for user security.
The risks of off-chain unlistings in PSBT solutions
Not all PSBT solutions are created equal. While PSBTs enable trust-minimized trades without a central custodian, other design choices, like on-chain unlistings, are necessary for end-to-end trustless solutions. On-chain unlistings are one such design choice that ensure Gamma's platform is trustless over the long term.
Improper handling of off-chain PSBTs, such as gasless unlistings, results in "forever listings" that can theoretically be fulfilled at any time. For example, you might initially agree to sell Inscription #123 for 1 BTC but later unlist it to sell for 10 BTC next year. With gasless unlistings, you merely instruct the platform to delete your PSBT from their centralized database, which is a trusted solution. In this example, despite wanting to then receive 10 BTC for your inscription, your listing could be fulfilled for the original price of 1 BTC at any point into the future.
You are first trusting the platform to actually delete the PSBT from their database. You then are also trusting the solution not to leak or fill canceled listings in the future, before this deletion occurs or if this deletion is not truly permanent.
Even if the centralized platform operates by-the-book with the best of intentions, a leak or hack of their off-chain PSBTs can lead to stolen assets if the market price rises above your "canceled" listings, because users won't have actually cancelled past listings from long ago. This is especially concerning, because a potential hack or leak could occur without any knowledge of the platform or its users, and the listings could be filled later without any knowledge or intention.
Building a trustless future on Bitcoin
We believe in the power of Bitcoin as the most secure, decentralized, and immutable settlement layer. Trustless solutions are key to providing users with the security they deserve when participating in decentralized exchanges.
By focusing on trustless solutions, we can work together to build a better, more secure future on the Bitcoin network. By avoiding the pitfalls of gasless unlist and promoting trustless solutions, we can ensure that users can confidently participate in decentralized exchanges without compromising their assets.