Skip to main content

Issuance, Collateral, & Security

Security is a top priority, and every ETF follows a clear lifecycle to ensure transparency and security:

Lore Support avatar
Written by Lore Support
Updated this week

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.

Did this answer your question?