Mint stBTC from BTC
As shown in the figure, the process of minting stBTCs from BTCs is as following:
The user logs into the Lorenzo dapp using the user’s wallet. Upon successful login, the deposit address available on the Lorenzo chain is displayed.
The user sends BTCs to the Lorenzo deposit address together with the user’s Lorenzo appchain EVM address included in the OP_RETURN operation code.
Lorenzo’s BTC relayer monitors the deposit address for incoming transactions. Once the transaction is confirmed, the relayer fetches the merkle proof of the transaction. It then calls the mint function of the Lorenzo LST_Control_Module module, which internally verifies whether the transaction proof is legitimate.
Upon successful validation, Lorenzo mints an equivalent amount of stBTCs for the user’s EVM account.
Circulation of stBTC
stBTC serves as Lorenzo’s gas fee token, which is required for all transactions. Users can use stBTCs to freely participate in all projects with the Lorenzo ecosystem, including NFT, DeFi, social, gaming, and so on.
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