@covenance/dlc/README.md

Crypto and Bitcoin functions for Covenance DLC implementation

# Covenance DLC

[![CI](https://github.com/covenance-io/dlc/actions/workflows/ci.yml/badge.svg)](https://github.com/covenance-io/dlc/actions/workflows/ci.yml)

A TypeScript library implementing cryptographic primitives for Discreet Log Contracts (DLCs) in the Covenance project.

## Installation

TODO: Configure private NPM repo on GitHub.

## Usage

### Oracle Functions

```typescript
import { commitToEvent, attestEventOutcome } from 'covenance-dlc';

// Oracle commits to an event
const { signaturePoints, nonce } = commitToEvent(
  eventOutcomeHashes,
  oraclePubKey
);

// Oracle attests to an event outcome
const oracleSig = attestEventOutcome(
  oraclePrivKey,
  nonce,
  eventOutcomeHash
);
```

### Counterparty Functions

```typescript
import { createAdaptorSig, adaptSig, verifyAdaptorSig } from 'covenance-dlc';

// Create an adaptor signature
const adaptorSig = createAdaptorSig(
  counterpartyPrivKey,
  oracleSigPoint,
  cetSighash
);

// Verify an adaptor signature
const isValid = verifyAdaptorSig(
  adaptorSig,
  counterpartyPubKey,
  cetSighash,
  oracleSigPoint
);

// Adapt a signature
const finalSig = adaptSig(adaptorSig, oracleSig);
```

## Development

### Setup

```bash
npm install
```

### Building

```bash
npm run build
```

### Testing

```bash
# Run tests
npm test

# Run tests with coverage
npm run test:coverage
```

### Linting

```bash
npm run lint
```