Decentralized Settlement Committee

Overview

The Settlement Committee is responsible for monitoring trades and ensuring that the Optimex Vault settles assets correctly when all trade conditions are met. It consists of Multiparty Computation (MPC) nodes, which collectively authorize transactions using a threshold signature scheme.

Structure & Security

• MPC Nodes: The Settlement Committee initially consists of three MPC nodes, producing a 2-of-3 threshold (tECDSA) signature for trade settlement.

• Epoch-Based Key Refresh: To enhance security, MPC nodes and their cryptographic keys are refreshed at regular epochs.

• Security Deposits & Slashing:

  • Each node must stake a security deposit, ensuring economic accountability.

  • Nodes are slashed if they deviate from protocol rules, such as failing to sign in time or blocking valid settlements.

  • The combined stake of all nodes must always be greater than the value of assets temporarily controlled by the Vault during trades.

• Scalability & Risk Mitigation:

  • Because assets remain under Vault control only during the trade process and are settled immediately, the Settlement Committee can facilitate billions in trading volume with reasonable security deposits (e.g., $10M–$20M per node).

The Settlement Committee’s decentralized design ensures trustless trade execution, high security, and economic alignment among participants in the Optimex ecosystem.