The withdrawal contracts process withdrawal requests and verify Bitcoin withdrawal transactions.
Withdrawal requests start on Stacks. However, an sBTC holder that does not own any STX can still sign a Stacks transaction and pay transaction fees in sBTC. The protocol exposes a mechanism to submit the withdrawals by means of a sponsored Stacks transaction. The sponsor will then receive an amount of sBTC in return for sponsoring the transaction. A sponsor can decide to sponsor the transaction if they find the fee acceptable.
We need to:
Explain steps and how redemptions are processed.
Link back to BTC transaction structure and minimum confirmations required.
The withdrawal contracts process withdrawal requests and verify Bitcoin withdrawal transactions.
Withdrawal requests start on Stacks. However, an sBTC holder that does not own any STX can still sign a Stacks transaction and pay transaction fees in sBTC. The protocol exposes a mechanism to submit the withdrawals by means of a sponsored Stacks transaction. The sponsor will then receive an amount of sBTC in return for sponsoring the transaction. A sponsor can decide to sponsor the transaction if they find the fee acceptable.
We need to: