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🔥 Automatic Burning of rBTC-SYNTH

Once the BTC reserve is moved or spent from the verified address, the system initiates an automatic burn of the corresponding synthetic token (rBTC-SYNTH).

⛓️ How It Works​

  • The system checks the BTC address every 20 seconds via Oracle.
  • If the BTC balance has decreased:
    • A proportional amount of rBTC-SYNTH is burned.
  • If the full BTC balance is withdrawn:
    • The full synthetic token balance is burned (100%).

🧮 Burn Calculation​

  • Burn amount = (original BTC - current BTC) × 1 rBTC-SYNTH
  • Example:

Original: 0.40 BTC → 0.40 rBTC-SYNTH Withdraw: 0.10 BTC moved out Result: 0.10 rBTC-SYNTH burned (25%)

  • Remaining: 0.30 rBTC-SYNTH stays in wallet

🤖 Triggering Logic​

The burn is triggered by the Oracle as follows:

function burnIfDepleted(address ethUser, uint256 amountToBurn) external onlyOracle {
    _burn(ethUser, amountToBurn);
}
  • The burn function cannot be called manually by users.
  • Only the Oracle determines the delta and calls the burn function.
  • The contract must receive exact updated BTC balance before any burn is approved.

🧷 Protections​

  • No manual burn: Only oracle-triggered.
  • No full access: Oracle can’t mint, only burn within the verified scope.
  • Burn scope is limited to previously minted balances.

🛠️ Next:​

Burn on exit. Fully trustless. Zero-custody design.