✅ Liquidity governance: When bridging BTC to its synthetic counterparts on various EVM networks, we must consider the optimal approach for managing liquidity. Given the heterogeneity of two sides (ECDSA && Schnorr), we propose distributing liquidity across multiple “pools” on the Bitcoin network. This strategy caters to the unique demands of each integration and enhances security by mitigating risks associated with single points of failure. The technical details of implementing this on the Bitcoin network also depend on how we approach the question of deposit addresses described later in the document. These addresses will be generated as Taproot addresses with specific spending conditions. These conditions restrict transaction permissions to two entities: the MPC (Multi-Party Computation) address and a multisig (multi-signature) wallet tasked with overseeing liquidity.

Conclusion:

BTC deposit addresses will be generated as Taproot addresses with specific spending conditions. These conditions restrict transaction permissions to two entities: the MPC (Multi-Party Computation) address and a multisig (multi-signature) wallet tasked with overseeing liquidity. Each synthetic representation of BTC will have its own deposit address on the Bitcoin network.

We will register a separate resource for each synthetic BTC on the EVM side (separate resource ID).