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Restructured from flat .tex/.pdf files into per-paper subdirectories. Added Antje Worring as co-author on all papers. Synced PDFs to pdfs/ for download site.
54 lines
3.6 KiB
TeX
54 lines
3.6 KiB
TeX
\section{Conclusion}
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\label{sec:conclusion}
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% ============================================================
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We have presented a comprehensive yield system for cross-chain bridge tokens that eliminates the \$675M+ annual capital inefficiency of idle bridge TVL. The system's formal properties---share price monotonicity, automatic undercollateralization pause, tier-based diversification, and exit guarantees---provide the safety invariants required for production bridge operation. Production hardening includes \texttt{VIRTUAL\_SHARES} $= \texttt{VIRTUAL\_ASSETS} = 10^8$ for first-depositor inflation attack protection, per-operation \texttt{forceApprove} (no infinite approvals), and 54 security tests including fuzz (256 runs) and invariant (128K calls) suites.
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The Bitcoin-native yield composition through Babylon, Lombard, SolvBTC, and CoreDAO represents a qualitative advance: native BTC earning yield without custodial wrapping, with the same FROST threshold key securing both bridge custody and staking positions.
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The xLUX flywheel, where fees from bridge, DEX, lending, perpetuals, and NFT AMM compound into staking yield, creates a self-reinforcing economic equilibrium that scales with ecosystem adoption. As cross-chain volume grows, yield-bearing bridge tokens become strictly dominant over conventional wrapped tokens---offering higher capital efficiency with equivalent or superior security guarantees.
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% ============================================================
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% References
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% ============================================================
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\begin{thebibliography}{99}
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\bibitem{defillama2025} DefiLlama, ``Bridge TVL Rankings,'' \url{https://defillama.com/bridges}, accessed April 2025.
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\bibitem{luxteleport} Z.~Kelling, ``Lux Teleport: A Sovereign Omnichain ,'' Lux Industries, Inc., 2025.
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\bibitem{frost} C.~Komlo and I.~Goldberg, ``FROST: Flexible Round-Optimized Schnorr Threshold Signatures,'' in \emph{Selected Areas in Cryptography (SAC)}, 2020.
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\bibitem{cggmp21} R.~Canetti, R.~Gennaro, S.~Goldfeder, N.~Makriyannis, and U.~Peled, ``UC Non-Interactive, Proactive, Threshold ECDSA with Identifiable Aborts,'' in \emph{ACM CCS}, 2020.
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\bibitem{erc4626} J.~Bebis \emph{et al.}, ``EIP-4626: Tokenized Vault Standard,'' Ethereum Improvement Proposal, 2022.
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\bibitem{lidofinance} Lido DAO, ``Lido: for Ethereum,'' \url{https://lido.fi}, 2020.
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\bibitem{aavev3} Aave Companies, ``Aave V3 Technical Paper,'' 2022.
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\bibitem{eigenlayer2023} S.~Kannan \emph{et al.}, ``EigenLayer: The Restaking Collective,'' Whitepaper, 2023.
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\bibitem{babylon2024} Babylon Labs, ``Bitcoin Staking: Unlocking 21M Bitcoins to Secure the Proof-of-Stake Economy,'' Whitepaper, 2024.
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\bibitem{lombard2024} Lombard Finance, ``LBTC: Liquid Bitcoin Staking,'' \url{https://lombard.finance}, 2024.
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\bibitem{solvbtc} Solv Protocol, ``SolvBTC: Bitcoin Yield Aggregation,'' \url{https://solv.finance}, 2024.
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\bibitem{coredao} Core Foundation, ``CoreDAO: Satoshi Plus Consensus,'' Whitepaper, 2023.
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\bibitem{pendle2023} Pendle Finance, ``Pendle: Yield Tokenization Protocol,'' \url{https://pendle.finance}, 2023.
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\bibitem{across2023} Across Protocol, ``Across: Optimistic Cross-Chain Bridge,'' Whitepaper, 2023.
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\bibitem{wormhole} Wormhole Foundation, ``Wormhole: A Generic Message Passing Protocol,'' Whitepaper, 2022.
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\bibitem{wbtc} BitGo, ``Wrapped Bitcoin (WBTC),'' \url{https://wbtc.network}, 2019.
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\bibitem{rekt} Rekt News, ``Leaderboard,'' \url{https://rekt.news/leaderboard/}, 2024.
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\bibitem{markowitz1952} H.~Markowitz, ``Portfolio Selection,'' \emph{The Journal of Finance}, vol.~7, no.~1, pp.~77--91, 1952.
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\end{thebibliography}
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