QUIP Lifecycle
A user creates a QUIP when they deposit funds to a QUIP-enabled smart contract or QUIP-enabled wallet. At any time, the user can transfer the QUIP to another owner using a regular cryptocurrency transaction. The QUIP also has three additional states that enable programmability:
The QUIP Lifecycle
- Propose: A proposed QUIP signals that a user is ready to conduct a transaction
- Approve: An approval accepts the proposal and enables changes to the network state
- Claim: A claim executes the approved changes to the network state
When multiple parties exchange QUIPs, there are also two timeout cases:
- Cancellable proposal timeout: A user can cancel a proposed QUIP once an initial timer expires with no counterparty matching the proposal. This resets the QUIP state.
- Slashable approval timeout: If a user has approved a matching proposal and a second timer expires without all parties’ approval, any approver can slash QUIPs belonging to the delinquent parties.
These states are what a cross-chain trade moves through in practice; see QuipSwap for how two parties use them to settle without a bridge or a custodian.