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Getting Started: Master Sovereign P2P Trading with Lighter.IM

Welcome to Lighter.IM, a decentralized, non-custodial on/off-ramp protocol engineered for secure and private fiat-crypto transactions. By integrating Zero-Knowledge Proofs (ZKP) and the Nostr Protocol, we provide a trustless environment where you retain full sovereignty over your assets without the risks of centralized exchanges.

1. Core Architecture: The 4-Layer Account System​

Lighter.IM utilizes a unique 4-layer account architecture to ensure your primary funds are never directly exposed to counterparties or escrow contracts. This strategic separation of identity, assets, and communication is our "layered defense":

  • EOA (Master Wallet): Your primary wallet (e.g., MetaMask) that holds your identity NFT.
  • Lighter Ticket NFT: Your Sovereign Identity within the protocol. Your TokenID defines your role (e.g., IDs 10000+ for standard traders).
  • TBA (Token Bound Account): A smart contract wallet based on EIP-6551 controlled by your NFT. It acts as a "Security Sandbox" for all trading assets.
  • Nostr: A decentralized protocol for end-to-end encrypted, censorship-resistant communication.

4-layer account system​

2. Onboarding & Trading Guide​

Step 1: Secure Your Lighter Ticket NFT​

To trade, you must first rent a Lighter Ticket NFT (typically TokenID 10000+ for global traders).

  • Sybil Resistance: The refundable rental fee prevents malicious bot activity and spam.
  • Identity Activation: Upon minting, the protocol automatically deploys your TBA and links it to your Nostr public key.

mint lighter ticket nft

Step 2: Create a Trading Intent (Maker)​

As a Maker, you use EIP-712 to sign your trade intents (Sellers will use Uniswap Permit2). You can customize your intent to ensure compliance with your trading goals:

  • Asset Specs: Target Token, Quantity, and Price.
  • Pricing Strategy: Set a Limit Price or track market price with a specified Slippage (in BPS).
  • Preferences: Supported payment methods, fiat currency, and expiration time.
  • Counterparty Requirements: Filter peers by their on-chain reputation (e.g., total volume or completion rate).

post intent

Step 3: Browse & Take an Intent (Taker)​

Find an intent that matches your needs and initiate the trade. The protocol will automatically verify pre-conditions, including:

  • Dynamic Volume: If the Maker allows, you can select any amount within their specified range.
  • Price Sync: Displays either the fixed limit price or the real-time market price with applied slippage.
  • Payment Match: You must have a payment method that matches the Maker’s requirements.

take intent

3. Trade Execution & Flow​

Once a trade is initiated, participants enter a private, encrypted Nostr session. There are three primary paths:

A. The Standard Path (Manual vs. Automated)​

  1. Manual/Alternating Flow: Both parties follow a three-step cycle: Escrow, Paid, and Release.
    • Escrow: Seller’s tokens are locked in the Lighter.IM Protocol.
    • Paid: The Buyer sends fiat and marks the trade as "Paid" on-chain.
    • Release: The Seller verifies receipt and releases the escrowed funds to the Buyer.
  2. Automated Flow (TLSN Proof):
    • The Buyer pays fiat and uses the TLSN Browser Extension to generate a TLSN Proof of the bank transfer.
    • The Buyer submits the Proof to the session, and once verified, they can call Release (with TLSN Proof) to automatically claim the escrowed funds without waiting for the Seller.

B. The Cancellation Path​

  • Timeout Fail-safe: If a Buyer fails to pay within the window, the Seller can Request Cancel. If the Buyer remains unresponsive, the Seller can unilaterally reclaim their assets after the Time Escape Window expires.
  • Mutual Consent: If the Buyer cancels the trade at any time, the Seller can immediately reclaim the escrowed assets.

C. The Dispute Path​

  • In case of conflict, either party can trigger a Dispute.
  • Mediators: Arbitrators (IDs 10-100) join the session to review evidence. They are held to a Zero-Trade Quota to ensure unbiased mediation.
  • Enforcement: If a party ignores the mediator’s ruling, the other party can execute the final settlement on-chain once the Arbitration Escape Window closes.

resove dispute

4. Reputation & Privacy​

  • Private Communication: All trade intents and chat logs are stored on the Nostr network, ensuring your financial privacy remains censorship-resistant.
  • On-chain Credit Score: Your successful trade history is permanently tied to your NFT, building a portable reputation. Data points include completion rate, average release time, and dispute history.

honour

5. Exit: Burning & Refunds​

When you are finished with the service:

  1. Burn NFT: Destroy the NFT to claim your original rental deposit.
  2. Safety Lock: You cannot burn your NFT if you have Pending Trades.
  3. Warning: Burning the NFT terminates your control over the TBA and loses association with your trading credit data. Note: Network gas fees are non-refundable.

Ready to trade with total sovereignty? Join the Public Beta at lighter.im 🚀