Deposits

Deposits:

Summary: When depositing assets to acquire wrapped assets within the UNIT ecosystem, users initiate a deposit process. This process involves automatic assignment to a vault, typically the least risky one available, and sending a unique amount to ensure transaction security. Off-chain workers then verify the deposit's authenticity, after which wrapped assets are seamlessly minted and integrated into the user's account, ensuring the integrity and security of the conversion process.

Deposit Process:

Vault Assignment:

• Upon initiating a deposit in UNIT, users are automatically assigned to a vault, usually the least risky one.

Unique Amount Requirement:

• To maintain transaction security and integrity, users must send a unique amount when depositing assets. This unique amount prevents impersonation or fraudulent activities. Note: The unique amount may be automatically calculated by the system (e.g., the user inputs a desire to deposit 1 BTC, but the system may request to send 0.99999578 BTC).

Selection of Vault:

• An automatically selected vault receives the unique amount sent by the user.

Verification by Off-chain Workers:

• Off-chain workers, responsible for validating transactions, verify the user's deposit to ensure its authenticity.

• Off-chain workers periodically query the external chain (e.g., Bitcoin blockchain), searching for a transaction with the following details:

  Recipient: The assigned vault’s address

  Amount: The unique generated amount

  Once the specific transaction has successfully been mined on the external chain, the off-chain workers verify user’s deposit.

Regulations of Deposits

Maximum deposit

The total value of each deposit should not be more than half of the off-chain workers' stake.

Minimum deposit

The minimum deposit amount for BTC and ETH is $100, and for all other assets, it is $20.

Vault Selection

If the requested deposit amount is in the range of $100 to $999, the less risky vault should have locked Unit worth in the range of $1.000 to $9.999.

For a deposit amount between $1.000 and $9.999, the selected vault will have Unit in the following range: $10.000 to $99.999.

* Extra note

When the deposit amount is $100, the unique generated amount will be around $99.99 thus we will use a vault in the range of $100 to $999.

Minting of Wrapped Assets:

• Once the deposit is confirmed as genuine by the off-chain workers, wrapped assets are minted and seamlessly integrated into the user's account.

This streamlined deposit process guarantees the authenticity of the deposit and the security of the resulting wrapped assets, ensuring a seamless user experience within the UNIT ecosystem.