Good morning Prayank,

> > https://lists.linuxfoundation.org/pipermail/lightning-dev/2018-December/001752.html
>
> Still trying to understand this problem and possible solutions. Interesting 
> email though (TIL), thanks for sharing the link. Found related things 
> explained Suredbits blog as well.


We can argue that the above problem is really just the "failed HTLCs are free 
and HODL invoices are free" problem, magnified by the fact that as an exchange, 
and with most cryptocurrency assets being very volatile, exchange rate changes 
can be exploited to leak economic power from exchange nodes.

So, fixing the "free HOLD invoices" problem, such as creating a ***palatable*** 
upfront payment scheme, should also fix the American Call Option problem.

On the other hand, if we cannot create an upfront payment scheme and are forced 
to solve the "free HODL invoices" problem by other means, then we may need to 
solve the American Call Option problem separately.

Regards,
ZmnSCPxj
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