Liquidity.spot Tutorial

How it Works

Liquidity.spot facilitates peer-to-peer atomic swaps between Handshake (HNS) and Bitcoin (BTC) using Hash Time-Locked Contracts (HTLCs). The platform acts as a coordinator, matching buyers and sellers and guiding them through the swap process.

Important: We never hold your funds. You retain custody of your coins throughout the entire process.

Step-by-Step Guide

1. Connect Wallet

Log in with your GFAVIP Wallet account. This creates your identity on the platform and syncs your Gems balance (used for staking).

2. Create or Accept an Order

Go to the Orders page to view the order book.

  • Post an Order: Specify if you want to Buy or Sell HNS, the amount, and your desired price in BTC.
  • Accept an Order: Browse existing offers and click "Accept" to initiate a swap.

3. The Swap Process (HTLC)

Once matched, you will be assigned a role: Alice (locks HNS first) or Bob (locks BTC second).

  1. Initiation: A secret key and its hash are generated.
  2. Lock HNS: Alice locks HNS in her wallet using the hash and a long timelock (48h).
  3. Lock BTC: Bob verifies Alice's lock, then locks BTC in his wallet using the same hash and a shorter timelock (24h).
  4. Claim BTC: Alice uses the secret key to claim the locked BTC. This reveals the secret on the blockchain.
  5. Claim HNS: Bob sees the revealed secret and uses it to claim the locked HNS.

Tools You Need

  • Handshake Wallet: Bob Wallet (recommended) or CLI wallet supporting HTLCs.
  • Bitcoin Wallet: Electrum or Bitcoin Core (must support HTLC/scripting).
  • GFA Gems: Optional reputation stake to boost order visibility and trust.

How to Test (Testnet)

1. Get Testnet Coins

  • HNS Regtest/Simnet: Run a local hsd node or use a faucet if available.
  • BTC Testnet: Use a Bitcoin Testnet Faucet to get tBTC.

2. Configure Wallets

  • Bob Wallet: Go to Settings > Network and switch to Testnet/Simnet.
  • Electrum: Start with --testnet flag or download the Testnet version.

3. Perform a Swap

Use the generated Secret Hash and Timelocks from this platform to create HTLC transactions in your wallets manually.

Note: This platform is currently in Testnet/MVP mode. Please practice with small amounts or testnet coins first.