The post Sui Implements Shared Custody Model for Enhanced Decentralized Finance appeared on BitcoinEthereumNews.com.

Rebeca Moen Aug 24, 2024 03:26 Sui introduces a shared custody model in its object-centric data framework, enhancing security and efficiency for DeFi applications. Sui, a blockchain known for its object-centric data model, has unveiled a new shared custody model aimed at improving security and efficiency for decentralized finance (DeFi) applications, according to The Sui Blog. Introduction to Shared Custody In decentralized finance, many applications require multiple parties to share access to on-chain states. For instance, a lending protocol needs timely access to liquidate positions, and dollar-cost averaging (DCA) strategies require frequent and automated trades. Traditionally, this is achieved through account-centric models, but Sui’s object-centric framework presents unique challenges and opportunities. Implementing Shared Custody The shared custody relationship on Sui leverages the platform’s object-ownership model. By using Shared Objects, Sui allows multiple entities to interact with an object. This method, however, introduces potential issues such as unrestricted access and increased risk of misuse. To mitigate these, Sui employs a custom object called an ‘Order,’ which encapsulates rules and restrictions on how funds can be accessed and managed. Challenges and Solutions While the shared custody model addresses accessibility, it also introduces complexities related to gas fees and network congestion. The model requires multiple objects to manage permissions, increasing both the cost and complexity of transactions. Additionally, shared objects can lead to network congestion as consensus is required to order transactions. To address these, Sui proposes using multi-signature (multisig) transactions. This approach retains the benefits of owned objects while allowing multiple entities permissioned access, thereby reducing gas fees and mitigating network congestion. The multisig model ensures that only authorized parties can interact with the object, enhancing security and efficiency. Security and User Experience Sui emphasizes the importance of user security and transparency. The shared custody model ensures that users’ funds are protected…

---

Filed under: News - @ August 24, 2024 3:24 am