Free option protection

The free option problem in atomic swaps arises when one party exploits market conditions by deciding to complete or abort a swap based on price movements, leaving the counterparty at a disadvantage. These cases are covered in scenarios and safeguards.

Garden addresses this challenge with built-in mechanisms that ensure fairness and accountability for the participants.

Solver safeguards

• Solver and its respective stakers are slashed if the solver fails to initiate a deposit on their side after the user’s deposit. The slashed amount is awarded to the user.
• This penalty directly discourages solver misuse and also ensures stakers will keep solvers accountable as they can always switch their vote to another solver.
• Settlement speed is already factored into the solver score formula, reducing the ability of unreliable solvers to win future intents.

User safeguards

• If a user fails to claim their asset after a swap is completed, a portion of the stakers’ SEED stake (proportional to the trade size) is slashed and awarded to the solver.
• Stakers earn yield from the protocol and govern its operations, making them responsible for ensuring users interact with the UI effectively.