Issuance & Collateral Mechanics
1. Token Creation
ETFs are minted via Lore’s mint & redeem smart contracts.
Currently on Solana, but easily deployable across chains (e.g., BNB).
Underlying assets can include xStocks, crypto tokens, and DeFi yield vaults.
Tokens are freely transferable cross-chain.
2. Collateralization & Custody
Each ETF has a dedicated on-chain MPC custody address (transparent & verifiable).
Custody options include:
Lore MPC (multi-admin, noncustodial infra).
Copper, BitGo, or Anchorage (qualified custodians for regulated setups).
All wallets are fund-level segregated, supporting accurate NAV tracking.
3. Rebalancing
xStock mints are routed via Lore’s AP Agreement with Backed.
Liquidity for coins sourced through partners (e.g., Kraken via Copper).
Pathfinder AI agent proposes rebalance transactions; human approval required today.
Future roadmap: fully autonomous AI-led rebalancing.
4. NAV Publishing
FundOS aggregates balances across Lore MPC, Copper MPC, Anchorage, etc.
NAV (Net Asset Value) is published live via websocket or polling.
Safeguards detect anomalies (e.g., sudden NAV drops from pricing errors).
Security
Security is a top priority.
All ETFs use noncustodial Multi-Party Computation (MPC) wallets.
Funds held in Portal’s audited architecture, with multiple key-shares for redundancy.
Transparent custody addresses allow anyone to verify fund holdings on-chain.