BEPswap Statechain

Since Binance Chain has no smart contracts, BEPSwap maintains a layer 2 statechain, while all transactions will take place on Binance Chain. This means that the statechain will merely observe. The function of the statechain will be to maintain security of the pooled assets at all time, and come to consensus about how to process transactions. Furthermore, statechain will be managing the ownership of the pool and assets will be secured by threshold signatures by a group of byzantine validators that maintain the statechain.

The BEPswap statechain will launch with 11 validators. Out of the collective, 2/3rds will have to agree on the outgoing transactions before they can be spent. All validators will have large amounts of RUNE tokens on their addresses, as an incentive for potential hackers to steal, and reveal any potential security breaches.