Stablecoin Actions

Custody Models

Custodial vs. Non-Custodial

A custodial model refers to a platform where user funds are stored in a wallet or multiple wallets that are controlled by a centralized entity. A non-custodial platform refers to a platform where each individual user maintains their own private keys to hold the funds stored inside their own wallets, allowing the customers to initiate transactions on behalf of their funds at any time.

The Difference

The features revolving the stablecoin issuance itself are identical regardless of the custodial model leveraged by a given platform. There are operational differences, however. Custodial platforms will be directly initiating mint and redeem transactions from the keys that are in their control. In a non-custodial platform, the users themselves will be signing wallet actions that initiate the transactions using their own private keys.

Interacting with the Vault

Direct Transactions

This page explains the smart contract interface that governs the mint, redeem, and bridge actions available on the vault.

Direct Transactions