coreBTC FAQs

1. What is coreBTC? What's the purpose of coreBTC?

coreBTC is a native wrapped Bitcoin on the Core Chain, maintaining a 1:1 peg with BTC through a secured and trustless mechanism. It allows Bitcoin users to interact seamlessly with the DeFi space on the EVM-compatible Core Chain using their BTC assets, expanding Bitcoin's functionality within the DeFi landscape without compromising its inherent security.

2. How is coreBTC different from centralized wrapped tokens (e.g., WBTC)?

Unlike centralized wrapped tokens like WBTC which rely on a custodian to hold the underlying Bitcoin, coreBTC operates through a decentralized infrastructure. It involves permissionless participants such as Lockers, Guardians, and Liquidators, ensuring enhanced security and integrity without relying on central custodians. This structure aligns with the decentralized ethos of blockchain, mitigating risks associated with centralized entities.

3. How does it achieve a trustless mechanism?

coreBTC's trustless mechanism is achieved through the involvement of decentralized, permissionless participants who ensure the system's integrity and security. Lockers lock BTC in a publicly known Bitcoin address, Guardians oversee activities and enforce rules, and Liquidators monitor collateral values. This setup allows for a secure and transparent process without the need for centralized control, ensuring the trustlessness of the system.

4. How can I be sure that my BTC is safe?

The security of your BTC in the coreBTC system is assured by over-collateralization required from Lockers and the continuous monitoring by Guardians and Liquidators. This structure ensures that the locked BTC is always backed by sufficient collateral on the Core chain, safeguarding against mismanagement or value drops. The decentralized nature of this ecosystem also contributes to its reliability and security.

5. Who are the key permissionless participants? What are their roles?

The key permissionless participants in the coreBTC ecosystem include:

• Lockers: They lock BTC in a transparent process, acting as custodians during the conversion process and ensuring the minting phase's integrity by overcollateralizing in the Core blockchain.

• Guardians: They monitor Lockers to prevent unauthorized movements of BTC and ensure compliance with the protocol, providing a check against mismanagement.

• Liquidators: They oversee the collateral's market value, initiating liquidation if the value falls below a certain threshold, thus maintaining the financial health of the system.

• Porters and Relayers: These participants facilitate the transmission and verification of data between the Bitcoin and Core blockchains, ensuring accurate and timely minting and burning of coreBTC.

6. How is the security of coreBTC ensured?

Our protocol and coreBTC’s security have been thoroughly audited by Halborn, a SOC2 Type 1 compliant firm renowned for its smart contract security expertise and trusted by leading blockchain platforms like Ava Labs, Solana, and Polygon, as well as DeFi projects like Sushiswap.

Review Audit Report

7. Where can I learn more about coreBTC and other Core Chain projects?

Visit https://unlockingbitcoindefi.com to find out more on coreBTC and our other innovative BTCfi projects