u/mortar924

How about this:

Alice has 10 ltc in OutputA.

Bob has 10 ltc in OutputB.

Alice sends 1 lit to Bob.

Bob sends 1 lit to Alice.

Alice now has 2 Outputs 1. OutputA1 (the change) and 2. Bobs1lit.

Bob now has 2 Outputs 1. OutputB1 (the change) and 2. Alices1lit.

Now if they both consolidate you have an anonymity set of 2.

Its like mixing, but without actually mixing, your just mixing in 1 lit.

Because amounts and adresses are hidden, even before cutthrough.

And its almost trustless, because loosing 1 lit isnt a problem.

Only problem would be coordination. Its also similar to Payjoin for Bitcoin.