Libre to Bitcoin (Peg Out)

When you want to move Bitcoin back from Libre to the Bitcoin network, the peg-out process is simple and decentralized.

Here's how it works:

1. Send BTC on Libre to x.libre with a Memo

To initiate the peg-out, send your BTC (pegged Bitcoin on Libre) to the x.libre contract. In the memo field of the transaction, specify the Bitcoin address (formatted as bc1q...) where you want to receive the Bitcoin.

2. Transaction Processing by MPC Nodes

The x.libre contract records the peg-out request, and the MPC nodes begin processing it. Each node independently verifies the request and prepares to sign the outgoing Bitcoin transaction.

3. Fee Deduction

A small 1% fee (capped at 1,000,000 SATs) is deducted from the transaction. This fee covers both Bitcoin network transaction costs and compensation for the bridge nodes.

4. MPC Nodes Sign the Bitcoin Transaction

Each MPC node independently generates a partial signature for the Bitcoin transaction using TSS. When the required number of nodes sign the transaction, the signatures are combined to form the final transaction.

5. Broadcasting the Bitcoin Transaction

Once the necessary threshold of signatures is met, the transaction is broadcast to the Bitcoin network. The Bitcoin will be sent to the specified bc1q... address.

6. Bitcoin Received

The Bitcoin transaction is confirmed on the Bitcoin blockchain, and the recipient address (bc1q...) will receive the Bitcoin. The peg-out process is now complete.