How ORIC Works

You can only supply on-chain funds during Bitcoin transaction. VTXOs, they live off the chain, right? So what happens is you redeem your VTXOs in exchange for the service provider to provide funds to their on-coin joint transaction. Covenants are a way to constrain outputs of a spending transaction in advance of funding the Bitcoin output. They're like aggregating batching bunch of UTIXOs, Andre Shady Tixo, which can be revealed at a later point.