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zeekayandHanzo Dev
70f6883235
A July commit removed eight papers on the premise "no license — DEX/non-custodial only". That premise is wrong: Lux operates an ATS, a broker-dealer, a transfer agent and a bank, and this material is resold at lux.financial. The merge that brought main in preserved the removal because the commit stated a reason, which is how a stale reason outlives the fact it rested on. Back, at the versions main carried — main never received the removal, so its copies are the later ones: the ATS architecture, the security-token standard, smart order routing, institutional custody, MPC custody, post-quantum securities, the SSB partnership and the CoinBridge brief. 83 files. Co-authored-by: Hanzo Dev <[email protected]>
40 lines
1.8 KiB
TeX
40 lines
1.8 KiB
TeX
\section{Introduction}
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\label{sec:intro}
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%% =====================================================================
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Traditional securities custody relies on a custodian bank that holds
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assets on behalf of clients. The custodian is a single point of
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failure: if it is compromised, all client assets are at risk. If it
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becomes insolvent, clients are general creditors. Blockchain-based
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securities remove the custodian by making the private key the proof
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of ownership, but this shifts the risk to key management: a lost key
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means lost assets, and a stolen key means stolen assets.
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Threshold signing eliminates the single-key problem. Instead of a
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single private key, the signing capability is distributed across
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multiple parties via secret sharing. A $t$-of-$n$ threshold scheme
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requires $t$ parties to cooperate to produce a valid signature, while
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any $t-1$ parties learn nothing about the key. The on-chain address
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is derived from the \emph{aggregate} public key and is
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indistinguishable from a standard single-key address.
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This paper describes the custody architecture deployed on the Liquid
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EVM for digital securities. The architecture uses two threshold
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signing protocols:
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\begin{itemize}[nosep]
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\item \textbf{CGGMP21}~\cite{cggmp21}: Threshold ECDSA for
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secp256k1. Produces standard $(r, s, v)$ Ethereum signatures.
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Used on EVM chains (downstream EVM L1s, Ethereum, Polygon, BSC).
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\item \textbf{FROST}~\cite{frost}: Threshold Schnorr for Ed25519
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and BIP-340 Taproot. Produces standard 64-byte Schnorr
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signatures. Used on Solana, TON, Cosmos, and Bitcoin Taproot.
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\end{itemize}
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Both protocols operate over the same Shamir secret sharing
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infrastructure (the \texttt{luxfi/threshold} LSS library) and share
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a common key generation ceremony.
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%% =====================================================================
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