Mapping BTC in Custody for Licensed Custodians Using Existed Version

Some licensed custodial institutions have rich experience on issuing ERC-20 versions of BTC on Ethereum. Therefore, they can issue the same ERC-20 BTC on exSat for staking.

Mapping custodial BTC assets to exSat for staking in this way is very friendly for custodial institutions.

  1. exSat is fully compatible with EVM, so contracts can be seamlessly migrated and deployed. Therefore, custodial institutions can deploy BTC token contracts on exSat using exactly the same contract code as on Ethereum.

  2. exSat's EVM code is completely open source and has been audited by well-known auditing institutions such as Blocksec, providing sufficient security guarantees to smoothly pass the risk control processes of custodial institutions.

As shown in the above figure:

  1. The BTC Custodians provide BTC custody service to its clients

  2. The BTC Custodians deploy the wrap-up BTC contract to issue their erc20 BTC version

  3. The BTC Custodians deploy their settlement protocol to settle the changing amount of the mirrored BTC on exSat

  4. The BTC Custodians stake their mirrored BTC into the staking contract to become validators for $XSAT rewards.

  5. Vice versa for un-staking process

Notes: Custodians need to provide their BTC native address to exSat. After verification, exSat will add it to the whitelist of the staking contract to accept their staking. Only contracts on the whitelist are authorized to call the staking interface.

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