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Maker Overview

The Maker is the party that provides liquidity for a coin swap initiated by a Taker. In return, the Maker earns a fee for facilitating the swap.

The Maker component is based on the makerd/maker-cli architecture, which is similar to bitcoind/bitcoin-cli. The makerd is a background daemon that handles the heavy tasks in the Coinswap protocol, such as interacting with the DNS system, maintaining fidelity bonds, and processing Taker requests.

The makerd server should run 24/7 to ensure it can process Taker requests and facilitate coin swaps at any time.

Warning:
Maker private keys should be kept in a hot wallet used by makerd to facilitate coin swap requests. Users are responsible for securing the server-side infrastructure.

The maker-cli is a command-line application that allows you to operate and manage makerd through RPC commands.

Data, Configuration, and Wallets

Maker stores all its data in a directory located at $HOME/.coinswap/maker. This directory contains the following important files:

1. config.toml

This configuration file contains all the settings for the Maker. The fields are:

  • network_port: The port through which the Maker listens for requests.
  • rpc_port: The port through which makerd listens for RPC commands from maker-cli.
  • min_swap_amount: The minimum amount (in sats) for a swap. Requests below this limit will be rejected.
  • socks_port: The port for Tor connections.
  • directory_server_address: The address of the DNS server (currently set to use Tor).
  • fidelity_amount: The amount (in sats) used to create the fidelity bond.
  • fidelity_timelock: The timelock for the fidelity bond, measured in block heights.
  • connection_type: The network type makerd uses (currently only TOR).

Default Configuration:

port = 6102
rpc_port = 6103
min_swap_amount = 100000
socks_port = 19050
directory_server_address = "127.0.0.1:8080" # Fix: Send Tor Address Instead
fidelity_amount = 5000000
fidelity_timelock = 26000
connection_type = "TOR"

Important:
At the moment, Coinswap operates only on the TOR network. The connection_type is hardcoded to TOR, and the app will only work with this network until multi-network support is added.

2. wallets Directory

This folder contains the wallet files used by the Maker to store wallet data, including private keys. Ensure these wallet files are backed up securely.

3. debug.log

The log file for makerd, where debug information is stored for troubleshooting and monitoring.

Maker Tutorial

In this tutorial, we will guide you through the process of operating the Maker component, including how to set up Makerd and how to use maker-cli for managing Makerd and performing wallet-related operations.

This tutorial is split into two parts:

  • Makerd Tutorial
  • maker-cli Tutorial

This section focuses on Makerd, walking you through the process of starting and fully setting up the server. For instructions on maker-cli, refer to the maker-cli demo.

How to Set Up Makerd

1. Start Bitcoin Core (Pre-requisite)

Makerd requires a Bitcoin Core RPC connection running on testnet4 for its operation. To get started, you need to start bitcoind:

Important:
All apps are designed to run on testnet4 for testing purposes. The DNS server that Maker connects to will also be on testnet4. While you can run these apps on other networks, there won't be any DNS available, so Maker won’t be able to connect to the DNS server or other Coinswap networks.

To start bitcoind:

$ bitcoind

Note: If you don’t have bitcoind installed or need help setting it up, refer to the bitcoind demo documentation.

2. Run the Help Command to See All Makerd Arguments

To see all the available arguments for Makerd, run the following command:

$ ./makerd --help

This will display information about the makerd binary and its options.

Output:

coinswap 0.1.0
Developers at Citadel-Tech
Coinswap Maker Server

The server requires a Bitcoin Core RPC connection running in testnet4. It requires some starting balance (0.05 BTC Fidelity + Swap Liquidity). After the successful creation of a Fidelity Bond, the server will start listening for incoming swap requests and earn swap fees.

The server is operated with the maker-cli app, for all basic wallet-related operations.

For more detailed usage information, please refer: [maker demo doc link]

This is early beta, and there are known and unknown bugs. Please report issues at:
https://github.com/citadel-tech/coinswap/issues

USAGE:
    makerd [OPTIONS]

OPTIONS:
    -a, --USER:PASSWD <USER:PASSWD>
            Bitcoin Core RPC authentication string (username, password)

            [default: user:password]

    -d, --data-directory <DATA_DIRECTORY>
            Optional DNS data directory. Default value: "~/.coinswap/maker"

    -h, --help
            Print help information

    -r, --ADDRESS:PORT <ADDRESS:PORT>
            Bitcoin Core RPC network address

            [default: 127.0.0.1:18443]

    -V, --version
            Print version information

    -w, --WALLET <WALLET>
            Optional wallet name. If the wallet exists, load the wallet, else create a new wallet with the given name. Default: maker-wallet

This will give you detailed information about the options and arguments available for Makerd.

Start makerd:

To start makerd, run the following command:

./makerd --USER:PASSWD <username>:<password> --ADDRESS:PORT 127.0.0.1:<bitcoind rpc port>

This will launch makerd and connect it to the Bitcoin RPC core running on it's rpc port, using the default data directory for maker located at $HOME/.coinswap/maker.

What happens next:

  • If no wallet file is found at $HOME/.coinswap/maker/wallets, makerd will create a new wallet named maker-wallet.

    INFO coinswap::wallet::api - Backup the Wallet Mnemonics.
["harvest", "trust", "catalog", "degree", "oxygen", "business", "crawl", "enemy", "hamster", "music", "this", "idle"]

INFO coinswap::maker::api - New Wallet created at: "$HOME/.coinswap/maker/wallets/maker-wallet"

  • If no config file exists, makerd will create a default config.toml file at $HOME/.coinswap/maker/config.toml.

    WARN coinswap::maker::config - Maker config file not found, creating default config file at path: /tmp/coinswap/maker/config.toml
INFO coinswap::maker::config - Successfully loaded config file from: $HOME/.coinswap/maker/config.toml

  • The wallet will sync to catch up with the latest updates.

    INFO coinswap::maker::api - Initializing wallet sync
INFO coinswap::maker::api - Completed wallet sync

  • makerd will start the TOR process and listen for connections on a TOR address.

    INFO coinswap::maker::server - [6102] Server is listening at 3xvc6tvf455afnogiwhzpztp7r5w43kq4r2yb5oootu7rog6k6rnq4id.onion:6102

  • makerd checks for existing fidelity bonds. If none are found, it will create one using the fidelity amount and timelock from the configuration file. By default, the fidelity amount is 50,000 sats and the timelock is 2160 blocks.

    INFO coinswap::maker::server - No active Fidelity Bonds found. Creating one.
INFO coinswap::maker::server - Fidelity value chosen = 0.0005 BTC
INFO coinswap::maker::server - Fidelity Tx fee = 1000 sats

    Note: Currently The transaction fee for the fidelity bond is hardcoded at 1000 sats. This approach of directly considering fee not fee rate will be improved in v0.1.1 milestones.

  • Since the maker wallet is empty, we'll need to fund it with at least 0.00051000 BTC to cover the fidelity amount and transaction fee. To fund the wallet, we can use a testnet4 faucet from testnet4 Faucets. Let's just take 0.01 BTCtestcoins as extra amount will be used in doing wallet related operations in maker-cli demo

  • The server will regularly sync the wallet every 10 seconds, increasing the interval in the pattern 10,20,30,40..., to detect any incoming funds.

  • Once the server detects a funding transaction, it will automatically create and broadcast a fidelity transaction using the funding UTXOs.

    INFO coinswap::wallet::fidelity - Fidelity Transaction 4593a892809621b64418d6bf9590c6536a1fa27f7a136d176ad302fb8ec3ce23 seen in mempool, waiting for confirmation.

  • Once the transaction is confirmed:

    INFO coinswap::wallet::fidelity - Fidelity Transaction 4593a892809621b64418d6bf9590c6536a1fa27f7a136d176ad302fb8ec3ce23 confirmed at blockheight: 229349
INFO coinswap::maker::server - [6102] Successfully created fidelity bond

  • After the fidelity bond is created, makerd will send its address to the DNS address book.

    INFO coinswap::maker::server - [6102] Successfully sent our address to dns at <dns_address>

  • Several threads will now be spawned to handle specific tasks:

    INFO coinswap::maker::server - [6102] Spawning Bitcoin Core connection checker thread
INFO coinswap::maker::server - [6102] Spawning Client connection status checker thread
INFO coinswap::maker::server - [6102] Spawning contract-watcher thread
INFO coinswap::maker::server - [6102] Spawning RPC server thread
INFO coinswap::maker::rpc::server - [6102] RPC socket binding successful at 127.0.0.1:6103

Finally, the makerd server is fully set up and ready to connect with other takers for coin swaps. Once everything is initialized, you can use the maker-cli to interact with the server, manage its wallet, and perform various operations.

INFO coinswap::maker::server - [6102] Server Setup completed!! Use maker-cli to operate the server and the internal wallet.

For detailed instructions on how to use the maker-cli, please refer to the maker-cli demo . This guide will provide a comprehensive overview of the available commands and features for operating your maker server effectively.