Motivation

There have been multiple proposals over the years in the bitcoin vault design space and they all have one thing in common: the security either relies on trusted or bonded signatories.

A large single reserve UTXO is privy to a 2/3rd collusion of the signatory set where 100% of the funds could be stolen. We’ve now seen this time and time again, with different set of custodian services such as centralised exchanges and lending institutions. where funds were spent without depositor’s consent, leading to unexpected counter-party risk.

Some proposals asks for minimum bond value of 150% or more of the reserve value by the signatories in order to guarantee funds, a model which is economically expensive to scale.