Minting Process

  1. DLC Mechanism: DLC acts as a lockbox on the Bitcoin blockchain, detailing pre-signed agreements between users and the protocol.

  2. Locking BTC: Users utilize the rexBTC protocol to lock their BTC in DLCs, which mints rexBTC tokens equivalent to the locked BTC amount.

  3. Private Key Distribution: Users hold one key to the multisig UTXO, while the second key is dispersed among verification nodes. DLCs can only be settled to users to prevent theft or loss.

  4. Verification Layer: A network of seven trusted node operators monitors blockchain events, announcing DLC creation and verifying results. They support bridges by ensuring reliable cross-chain communication without holding users' keys.

  5. Using rexBTC: Minted rexBTC tokens can access various DeFi platforms.

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