How it works

From your wallet to Bitcoin

A Ducat transaction starts in your wallet and settles on Bitcoin. Guardians check the protocol rules; validators read the resulting records.

Who does what

Your wallet authorizes the transaction. These three parts build it, check it and record its effect on the ledger.

Client + SDK
Builds the transaction with your wallet.
Guardians
Check protocol rules and co-sign.
Validators
Read Bitcoin transactions to check Ducat’s ledger.

Recorded on Bitcoin

Validators reconstruct the ledger from Bitcoin records. They do not sign transactions or move collateral.

Read the transaction documentation

Oracle partner

From a price threshold to a Bitcoin hashlock

Ducat’s Chainlink CRE oracle uses HMAC to derive a secret for a price condition. The vault commits to its hash. The oracle controls when the secret is revealed; Bitcoin checks that it matches.

Ducat’s Chainlink CRE oracle derives a threshold-specific secret using HMAC. A key suspended from a thread represents this private secret. Its HASH160 commitment locks a liquidation path on Bitcoin. An illustrative price line crosses the threshold, cuts the thread, and the key falls into the lock. The secret remains private while the price is at or above the threshold. When BTC falls below the threshold, the oracle reveals that secret. Bitcoin checks it against the committed hash; Guardian signatures are still required. The front door then swings open to reveal a vault filled to the top with BTC coins. A flowing wave of white BTC coins with blue rims spills from the pile, illustrating the release of collateral after these checks. This is a repeating illustration, not a live price feed.

The hash is committed

A signed quote contains the price threshold, timestamp and the secret’s hash. The secret stays with the oracle.

The price condition is checked

A liquidator requests the historical quote. If the oracle determines that the threshold has been crossed since the quote, it can return the secret.

The liquidation is verified

The secret satisfies the hashlock. Guardians still verify the quote and transaction before co-signing. The secret alone cannot move the BTC.

The animation explains the mechanism, rather than showing live prices. Available operations depend on the network and deployment.

Read the oracle documentation

Understand the trust assumptions

Read the security model