💬 FAQs
Why not use DLCs (Discreet Log Contracts)?
DLCs are single-use oracle contracts designed for event-based payouts. Surge vaults are persistent and programmable, supporting recurring actions like borrow, repay, and partial liquidation. DLCs can’t maintain live vault states or multi-party control, so Surge uses Taproot + MAST scripts for reusable native logic. Read more here
Why not use a single key path instead of MAST spend paths?
A single key path exposes all logic under one aggregated key, reducing flexibility and privacy.
MAST allows each spend condition - repayment, liquidation, and escape to exist as a separate branch, revealing only the one used and keeping other logic hidden.
What makes Surge non-custodial?
Even if signers go offline or refuse to cooperate, users can still unilaterally recover BTC after a timelock using the Escape Hatch path. The non-custodial guarantee comes directly from Bitcoin script.
Who controls the BTC?
BTC stays in your dVault, which no single entity can spend. Even if signers go offline, the escape hatch lets you unilaterally recover it.
Why does Surge use Lin22 instead of FROST?
Lin22 provides stronger fault tolerance and accountability.
If a signer misbehaves, Lin22 generates cryptographic proof identifying who failed, allowing to exclude signer for next requests, slashing and signer rotation without relying on the coordinator
What's the difference between variable and fixed rate?
Variable rate comes from the floating-rate market: the borrow rate moves with utilization. Fixed rate comes from dedicated fixed-rate tranches (e.g. 6%, 8%): you lock in a set rate for your loan. Liquidity is moved between the variable pool and fixed markets when borrowers take or repay fixed-rate loans—it isn't duplicated. LPs can opt in to fixed markets and set allocation limits. See Credit Markets for the full picture, or the Surge Multi-Market Lending Pool (Notion) for a design deep-dive.