Security model
TeleSwap is designed so users don't have to trust any single operator. Security comes from two layers: Bitcoin-anchored verification and economic collateral.
Light-client, not validator-based
TeleSwap bridges with a Bitcoin light client, where verification is done by the bridge contract itself rather than by a trusted set of validator nodes.
| Validator-based bridges | Light-client bridge (TeleSwap) | |
|---|---|---|
| Who verifies | A fixed validator set | The smart contract, against Bitcoin's rules |
| Main risk | Compromised/colluding validators | Inherits source-chain security |
| Collateral | Validators must lock collateral | Relayers lock none — bad input is just rejected |
| Participation | Permissioned set | Anyone can relay |
Security is therefore tied to protocol rules and Bitcoin, not to third-party operators.
1. Bitcoin-anchored verification
Nothing mints TeleBTC or completes a redemption without proof. The light-client bridge holds Bitcoin's headers (supplied by Relayers) and verifies an SPV inclusion proof for every:
- wrap — TeleBTC is minted only after a real BTC deposit is proven;
- unwrap — a request completes only after the Locker proves it sent BTC;
- slashing — anyone can prove a Locker moved BTC illegitimately.
2. Economic collateral
TeleBTC is backed by Locker collateral worth more than the BTC held. Misbehavior is unprofitable:
- Slashing punishes theft and missed unwraps, compensating users from collateral.
- Liquidation keeps collateral healthy if its value drifts toward the BTC value.
Trust assumptions
- Liveness — at least one honest Relayer keeps the bridge's header chain current, and at least one Teleporter relays requests (users can self-submit if none do).
- Confirmations — users wait for Bitcoin confirmations (or delegate that risk to a Filler for fast swaps).
- Collateral value — security assumes Locker collateral stays sufficiently valued; liquidation defends this, but extreme, sudden collateral-price crashes are the main risk vector.
Audits
See Audit Reports for third-party reviews of the contracts.