mirror of
https://github.com/lux-apps/papers.git
synced 2026-10-30 18:15:21 +00:00
zeekay
abf99d05fc
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.
29 lines
2.4 KiB
TeX
29 lines
2.4 KiB
TeX
\section{Introduction}
|
|
|
|
\label{sec:intro}
|
|
% ============================================================
|
|
|
|
Bridge governance is an unsolved problem. Existing cross-chain protocols fall into two categories: (a)~centrally governed bridges where a single team controls fees, token listings, and yield strategies across all chains (Wormhole~\cite{wormhole}, LayerZero~\cite{layerzero}), and (b)~ungoverned bridges where parameters are immutable at deployment, preventing adaptation to market conditions or regulatory requirements (tBTC~\cite{tbtc}).
|
|
|
|
Neither model serves the emerging requirements of cross-chain DeFi:
|
|
|
|
\begin{enumerate}[nosep]
|
|
\item \textbf{Sovereignty}: Chain communities demand control over their own economic parameters. A Lux C-Chain bridge should be governed by LUX holders, not by a separate governance token.
|
|
\item \textbf{Islamic finance}: Approximately 1.8~billion Muslims are excluded from DeFi because yield sources derive from interest (\emph{riba}), which Shariah law prohibits~\cite{usmani2002}. No existing bridge protocol provides protocol-level Shariah enforcement.
|
|
\item \textbf{Securities regulation}: The EU Markets in Crypto-Assets regulation (MiCA)~\cite{mica2023} and US securities law require that security tokens maintain compliance constraints (accreditation, lockup, jurisdiction) across chain boundaries. Existing bridges strip these constraints during transfer.
|
|
\end{enumerate}
|
|
|
|
Lux Teleport's Sovereign DeFi architecture addresses all three requirements through a clean separation of three authority domains---security, economics, and protocol---where each domain has well-defined capabilities and hard limits that cannot be overridden by any other domain.
|
|
|
|
\paragraph{Contributions.} This paper makes six contributions:
|
|
\begin{enumerate}[nosep]
|
|
\item A formal governance model with proven isolation properties (Section~\ref{sec:governance}).
|
|
\item A Shariah compliance algebra with on-chain enforcement (Section~\ref{sec:shariah}).
|
|
\item A securities compliance state machine compatible with ERC-3643~\cite{erc3643} (Section~\ref{sec:securities}).
|
|
\item A white-label architecture enabling sovereign deployment (Section~\ref{sec:whitelabel}).
|
|
\item Formal proofs of governance isolation, exit guarantee, and fee cap invariants (Section~\ref{sec:formal}).
|
|
\item A game-theoretic analysis of fee competition between sovereign instances (Section~\ref{sec:economics}).
|
|
\end{enumerate}
|
|
|
|
% ============================================================
|