Redeem BTC from stBTC

The process of burning stBTCs to redeem BTCs.

A user can redeem BTCs by burning stBTCs. As shown in the figure, the process of redeeming BTCs is as following:

1. The user logs into the Lorenzo dapp using the user’s wallet.

2. The user burns a certain amount of stBTCs.

3. The Lorenzo Monitor monitors the stBTC burning event on the Lorenzo chain.

4. The Lorenzo Monitor sends the transaction hash of the transaction, along with the constructed BTC withdrawal transaction, to the Vault Wallet System service and requests a signature.

5. The Vault Wallet System is a multi-signature service deployed on multiple machines, with each machine holding a portion of the signatures. Each machine verifies the legality of the txhash of the stBTC burning transaction. If the legality is confirmed, the machines participating in the multi-signature service interactively generate the final signature, which is then sent back to the Lorenzo Monitor.

6. Upon receiving the BTC signature, Lorenzo_monitor broadcasts the signed transaction to the BTC network, completing the user’s withdrawal operation.