Wallets and Custody
In order to interact with the 10e53 platform, you need a wallet. You will use this wallet to approve transactions when investing & withdrawing in the liquidity pool or in tranches. Furthermore, this wallet can be used to keep track of all assets (tokens) you posses. There are several options when it comes to wallets:
Browser wallet
A browser wallet comes in the form of a browser extension or mobile app. Popular browser wallets on Solana are Metamask and Rainbow. When installing a bowser wallet, you get presented with a recovery phrase. From this recovery phrase, the wallet can deduce your private key. Metamask will not store this phrase on their servers. It will store it in google Chrome storage; but when your computer crashes or you buy a new one, you'll have to re-enter it. This phrase is literally the key to your funds held in this wallet! It's thus VERY important to have a backup of this key in case you lose it. You can store it in a secure password manager or even better, on a hardware wallet.
Pros
Free
Easy to use
Fast, as only one approval is needed to execute a transaction (e.g. invest)
Cons
Single source of failure => If someone gets hold of your private key, they have access to all your assets
No complex approval flows possible, as only one approval is needed to execute a transaction (e.g. invest)
On-chain multisig wallet
A multisig wallet is a more secure way to protect your assets. Such a wallet has several browser wallets as members, of which all / a portion needs to sign before a transaction can be executed. Let's say you're 5 people in the investment team of a fund: you could set up a multisig wallet, specifying the 5 public keys (browser wallets) and a threshold (e.g. 3). If you want to invest in Venture Machine, you would create a proposal. After 3 out of 5 browser wallets have signed, the transaction can be executed.
Pros
More secure as multiple people / wallets are part of the process
More dynamic as you can set the threshold, and expiry date for the proposals
Cons
Requires more setup (creation of the multisig)
More orchestration as multiple people / wallets are part of the process
Custody providers
Custody providers like Fireblocks and Copper provide an enterprise-grade platform in which complex approval flows can be set. A transaction would still be initiated on app.credix.finance, but the approval flow would happen within the provider's platform. Furthermore, you can easily extract reports on trading activity / platform activity and set granular access rights.
Pros
Most institutional
Granular access rights + transaction execution approval flows
Multi Party Computing (MPC) makes the execution process very secure
Cons
Paid service
(Semi) Custodial
Getting started
Reach out to contact@venturemachine.xyz and we can bring you in touch with the right custody provider.
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