DLC Oracle

Spec-compliant BIP-340 Schnorr attestations for Discreet Log Contracts. Three event types — enum, numeric, and threshold — with auto-resolution at maturity. Wire format compatible with kormir, dlcdevkit, rust-dlc, and any spec-compliant DLC library.

Overview

The Mycelia Signal DLC Oracle provides cryptographic attestations that enable two parties to construct trustless financial contracts on Bitcoin. The oracle publishes pre-committed nonces in an announcement, then reveals Schnorr signatures at maturity. Those signatures are the only thing that can unlock the on-chain contract — the oracle never touches anyone's money and doesn't know who the counterparties are or how much they bet.

Three event types are supported:

All event types use BIP-340 Schnorr signatures over secp256k1 with spec-compliant tagged hashes per discreetlogcontracts/dlcspecs. Flat $7.00 USDC / 10,000 sats per event — covers nonce generation, secure storage, and auto-attestation at maturity.

Oracle Identity

The DLC oracle runs on a dedicated US instance. The public key is stable and published for independent verification.

Payment

Two payment rails are supported. Send a request without credentials to receive HTTP 402 with both options — you only need to implement one.

L402 — Lightning (10,000 sats)

Standard L402 protocol. Pay the invoice with any Lightning wallet (Phoenix, Strike, Alby, etc.) and retry with the preimage.

# Step 1 — POST to get the 402 with invoice
curl -s -X POST https://api.myceliasignal.com/dlc/oracle/enum \
  -H "Content-Type: application/json" \
  -d '{"label":"btc-bucket","outcomes":["below_70k","70k_80k","above_80k"],"maturityTs":1780000000}'

# Response: 402 with L402 invoice + x402 payment requirements
# Pay the invoice, then retry with preimage:

curl -s -X POST https://api.myceliasignal.com/dlc/oracle/enum \
  -H "Content-Type: application/json" \
  -H "Authorization: L402 <macaroon>:<preimage>" \
  -d '{"label":"btc-bucket","outcomes":["below_70k","70k_80k","above_80k"],"maturityTs":1780000000}'

x402 — USDC on Base ($7.00)

Standard x402 v2 protocol using EIP-3009 transferWithAuthorization. Sign the transfer from your Base wallet and include the encoded payload.

# Step 1 — POST to get payment requirements
curl -s -X POST https://api.myceliasignal.com/dlc/oracle/enum \
  -H "Content-Type: application/json" \
  -d '{"label":"btc-bucket","outcomes":["below_70k","70k_80k","above_80k"],"maturityTs":1780000000}'

# Response: 402 with payment-required header (x402 v2 requirements)
# Sign EIP-3009 transfer, then retry with PAYMENT-SIGNATURE header:

curl -s -X POST https://api.myceliasignal.com/dlc/oracle/enum \
  -H "Content-Type: application/json" \
  -H "PAYMENT-SIGNATURE: <base64-encoded-payload>" \
  -d '{"label":"btc-bucket","outcomes":["below_70k","70k_80k","above_80k"],"maturityTs":1780000000}'

Endpoints

Enum (disjoint union)

Numeric (digit decomposition)

Threshold (legacy)

Discovery (free)

Enum Events — Create and Settle

Enum events are for categorical outcomes where the answer is one bucket from a known set. Customer defines outcomes at creation; oracle publishes one Schnorr signature at maturity revealing the winning outcome.

Create an enum event

curl -s -X POST https://api.myceliasignal.com/dlc/oracle/enum \
  -H "Content-Type: application/json" \
  -H "Authorization: L402 <macaroon>:<preimage>" \
  -d '{
    "label": "btc-price-bucket-may1",
    "outcomes": ["below_70k", "70k_75k", "75k_80k", "above_80k"],
    "maturityTs": 1780000000,
    "metadata": {
      "resolverConfig": {
        "kind": "price_buckets",
        "source": "http://localhost:9200/oracle/price/btc/usd",
        "boundaries": [70000, 75000, 80000]
      }
    }
  }'

{
  "status": "registered",
  "eventid": "enum-btc-price-bucket-may1-2f6704559a1e-1780000000",
  "type": "enum",
  "outcomes": ["below_70k", "70k_75k", "75k_80k", "above_80k"],
  "maturityTs": 1780000000,
  "oraclePubkey": "ff5589b5812f07dec1aad7af189e0513...",
  "rpoints": ["15c5e0fa...", "c5fa8cf5...", "8e016027...", "e28a267a..."],
  "announcementSignature": "52ca48c15de58dd2...",
  "serialized": "d82452ca48c15de5...",
  "rail": "l402",
  "priceUsd": 7.0
}

The serialized field is a hex-encoded TLV blob per dlcspecs — feed it directly into kormir, dlcdevkit, or any spec-compliant DLC library. One rpoint per outcome.

Enum request fields

Numeric Events — Create and Settle

Numeric events decompose a value into individual digits, each attested separately. This allows counterparties to construct CETs covering all possible price outcomes with arbitrary precision.

Create a numeric event

curl -s -X POST https://api.myceliasignal.com/dlc/oracle/numeric \
  -H "Content-Type: application/json" \
  -H "Authorization: L402 <macaroon>:<preimage>" \
  -d '{
    "label": "btc-usd-may1",
    "base": 10,
    "nbDigits": 7,
    "unit": "USD",
    "maturityTs": 1780000000,
    "metadata": {
      "resolverConfig": {
        "kind": "price_source",
        "source": "http://localhost:9200/oracle/price/btc/usd",
        "scaleFactor": 1
      }
    }
  }'

At maturity, BTC at $77,553 decomposes as digits [0, 0, 7, 7, 5, 5, 3] — seven separate Schnorr signatures revealed. Use scaleFactor for sub-unit precision: scaleFactor=100 against ETH at $4,500.42 gives integer 450042, decomposed as [0, 4, 5, 0, 0, 4, 2] — cent-level precision.

Numeric request fields

Auto-Resolution

Events created with a resolverConfig in metadata self-settle at maturity. The oracle scheduler checks every 60 seconds for events past maturity and resolves them automatically.

Events without a resolverConfig can be manually attested via the admin endpoint (POST /dlc/oracle/{enum,numeric}/{eid}/attest with X-Oracle-Secret header).

Threshold Contracts

Threshold contracts monitor a price continuously and attest when the price crosses a defined level. Binary outcome — breached or safe. Use for Bitcoin-collateralized loans, perpetual hedges, or any binary outcome contract.

Register a threshold contract

curl -s -X POST https://api.myceliasignal.com/dlc/oracle/threshold \
  -H "Content-Type: application/json" \
  -H "Authorization: L402 <macaroon>:<preimage>" \
  -d '{
    "pair": "BTCUSD",
    "strike": 90000,
    "direction": "above",
    "expiry": 1780000000,
    "webhookUrl": "https://your-server.com/dlc-webhook"
  }'

Supported Pairs

All 17 pairs support threshold contracts. Enum and numeric events can use any pair via resolverConfig, or any custom data source.

Cryptography