Gateway Model

The gateway model is the primary mechanism for moving external assets onto SBChain and making them tradeable on the DEX. A gateway is a trusted entity that operates accounts on both SBChain and an external blockchain, issuing on-chain IOU tokens that represent the external asset held in custody.

How It Works

• A gateway operates accounts on both SBChain and an external blockchain (e.g. Bitcoin)
• A user sends external assets (e.g. BTC) to the gateway's external wallet address
• The gateway monitors the external chain and, on confirmation, issues an equivalent IOU token on SBChain to the user's account
• The IOU token (e.g. BRIDGE.BTC) is a User-Issued Asset (UIA) whose supply is controlled by the gateway
• The IOU trades freely on the SBChain DEX against any other asset
• To withdraw, the user sends the IOU back to the gateway's SBChain account
• The gateway burns the IOU and releases the external asset to the user's specified external address

IOU Token Properties

• Created using asset_create_operation by the gateway account
• The gateway is the issuer — only the gateway can issue and reserve (burn) IOU tokens
• The gateway configures transfer permissions, whitelists, and market fees on the IOU
• Supply is always backed 1:1 by the external assets held by the gateway

Trust Model

Risk mitigations used by gateways:

• Public proof-of-reserve audits
• Multi-sig custody on external wallets
• Insurance or collateral pools
• Reputation and community oversight