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Bitrune uses a non-custodial deposit scheme built on Taproot with MuSig2 key aggregation. The platform cannot unilaterally spend user funds.

Deposit Address Structure

Each user deposit address is a Pay-to-Taproot (P2TR) output with three spend paths:

Key-Path: 2-of-2 MuSig2

  • The internal key is a MuSig2 aggregate of the user’s key and the platform’s key.
  • Both parties must participate in the two-round MuSig2 signing protocol to produce a valid signature.
  • On-chain, a cooperative spend is indistinguishable from a single-sig Taproot payment (Taproot privacy).

Script-Path Leaf U: User Recovery

  • Requires the user’s signature and a CSV timelock of approximately 30 days.
  • Allows the user to recover funds unilaterally if the platform becomes unavailable.
  • No third-party intervention is needed.

Script-Path Leaf P: Platform Recovery

  • Requires the platform’s signature and a CSV timelock of approximately 60 days.
  • Allows the platform to recover dormant funds after a longer waiting period.
  • Only activates well after the user’s own recovery window.

Pool Address Structure

Pool addresses are single-sig, controlled by the platform key. They are not MuSig2 addresses. The platform signs pool-side inputs directly during swap execution. Only user deposit addresses use the 2-of-2 MuSig2 scheme.

Spend Scenarios

ScenarioSpend PathRequirement
Normal operation (swap, withdraw, LP)Key-path MuSig2Both user and platform sign cooperatively
Platform offlineScript-path Leaf UUser waits for the CSV timelock, then spends unilaterally
User offlineNo spend possiblePlatform cannot spend alone (2-of-2 requirement)
Both offlineLockedFunds remain locked until either party returns or a CSV timelock expires

Security Properties

  • No unilateral platform spend. The 2-of-2 MuSig2 key-path requires both parties. The platform cannot move user deposits without user participation.
  • User self-rescue. If the platform disappears, the user recovers funds after the CSV timelock. No third-party intervention is needed.
  • Platform dormant recovery. If the user abandons funds, the platform can recover them after a longer CSV timelock.
  • On-chain privacy. Cooperative key-path spends reveal no script structure. Observers cannot distinguish Bitrune deposits from ordinary single-sig Taproot payments.
  • No guardian multisig. Pool and platform keys are single-sig. Only user deposit addresses use MuSig2.