Circulation Control

Hot Reserve, Cold Reserve, and Custodian:

Explore the nuanced management of the 1:1 peg through a flexible Hot / Cold reserve setup. $zBTC circulation is tied to SOL and LSD-SOL Total Value Locked (TVL), requiring an on-chain Oracle for BTC/SOL.

The Hot Reserve, controlled by a CheckLockTimeVerify (CLTV) mechanism, enables depositors to withdraw funds after a set lock time, offering flexibility in managing long-term reserves.

Conversely, the Cold Reserve, managed solely by verifiers, remains locked for an extended period.

CLTV implementation serves dual purposes of efficiency and security, acting as a buffer for APOLLO to adjust or rebalance $zBTC circulation. Withdrawals from the Hot Reserve are initiated by applicants, facilitating liquidity retrieval.

Liquidity providers in the Cold Reserve receive rewards in $ZEUS, while those in the Hot Reserve do not.

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