EDRA Mechanism

Distributed collective reserve architecture that eliminates centralized custody risks and single points of failure.

EDRA (Entity Derived Reserve Address) is the technical name for what you see as your "Deposit Address" in the APOLLO interface. This Deposit Address is your entry point to APOLLO's distributed collective reserve system that enables Bitcoin holders to safely deposit Bitcoin and mint zBTC on Solana.

Instead of storing all Bitcoin in centralized vaults like traditional systems, the EDRA system creates a collective reserve spread across multiple addresses for enhanced security. Your personal Deposit Address (EDRA) serves as your entry point to this distributed reserve system, where Bitcoin is managed collectively while your ownership is guaranteed through zBTC tokens.

How Your Deposit Address (EDRA) Works

Every APOLLO user receives one permanent Deposit Address for Bitcoin deposits:

• Permanent and reusable for all future Bitcoin deposits

• Functions like a bank account number specific to your account

• Seamless deposits without needing new address generation

Collective Reserve Network

Individual Deposit Addresses (EDRAs) form APOLLO's distributed collective reserve - a network where all Bitcoin deposits are pooled together for optimal security and operations. This creates a resilient system with no central storage points, where security increases as more users participate.

Why Your Deposit Address Balance Changes

Your Deposit Address balance will fluctuate as part of normal collective reserve operations. This happens because the system continuously optimizes Bitcoin distribution across the network for:

• Enhanced Security - Distributing Bitcoin prevents concentration risks and eliminates single points of failure

• Operational Efficiency - Smooth processing of all user deposits and withdrawals across the network

• Reserve Optimization - Maintaining optimal liquidity while preserving system-wide security

Your Ownership Never Changes

Important: While your Deposit Address balance changes, your Bitcoin ownership remains constant. Your zBTC tokens represent your exact share of the total collective reserve. The system maintains perfect 1:1 pegging where total Bitcoin reserves always equal total zBTC supply.

Think of it like a transparent bank: Your Deposit Address is like depositing cash into a shared vault system, but unlike traditional banks, you can verify the entire vault contents and your exact share at any time.