Zipper Documentation
  • Introduction
    • Zipper Overview
    • Fabric Labs Ecosystem
      • Fabric
      • Polyester
      • Zipper
  • Core Concepts
    • What are zAssets?
      • What To Do With zAssets?
    • What Is Zipping/Unzipping?
    • What Are On-Chain Vaults?
  • Getting Started
    • Navigating Zipper.Trade
    • Connecting Your Wallet
    • Zipping: Step-by-Step
    • Unzipping: Step-by-Step
    • Zip/Unzip Fees
  • Developer Information
    • Zipper Architecture
  • Security and Compliance
    • Compliance Mechanisms
  • Vault Architecture
  • What Is TEE?
  • Glossary and Resources
    • Key Terms
    • Supported Blockchains/Tokens
    • Useful Links
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  1. Core Concepts

What Are On-Chain Vaults?

PreviousWhat Is Zipping/Unzipping?NextNavigating Zipper.Trade

Last updated 1 month ago

On-chain vaults are the core security mechanism of Zipper, ensuring that every zAsset on Fabric is fully backed 1:1 by its real counterpart on its original blockchain. These vaults function as transparent, decentralized storage locations where users’ deposited assets remain securely held while their zAsset equivalent exists on Fabric.

How Vaults Secure Funds

Each external blockchain has a dedicated vault controlled by Zipper. When a user zips an asset, it is deposited into the vault, and a corresponding zAsset is minted on Fabric. When a user unzips, the corresponding zAsset is burned, and the original asset is released from the vault back to the user.

Vaults ensure: ✅ 1:1 Backing - Every zAsset on Fabric corresponds exactly to an asset stored in an on-chain vault. ✅ Trustless Security - Users can verify the vault’s balance on-chain at any time. ✅ No Liquidity Pools - Vaults are not used for lending or staking; funds remain secure and untouched until a user requests a withdrawal.

Multi-Signature & TEE Security

To prevent single points of failure, Zipper secures its vaults using a multi-signature (multi-sig) model combined with Trusted Execution Environment (TEE) technology.

  • Multi-Sig Protection - Vault transactions require multiple signatures, ensuring that no single entity has full control over user funds.

  • TEE Security Model - Trusted Execution Environments protect vault private keys, ensuring that even Zipper’s operators cannot unilaterally access or move funds.

This redundant security architecture ensures that even in extreme scenarios, funds remain fully protected.

Full Transparency & Public Verification

Zipper’s vaults are completely auditable, and users can verify:

  • The total balance of assets stored in vaults.

  • The contract addresses of zipped and unzipped assets.

  • The history of deposits and withdrawals.

Zipper’s Role in Vault Management

Zipper only facilitates vault deposits and withdrawals - it does not verify asset legitimacy. The best way for users to verify assets is to check contract addresses during the Zipping process and use FabricScan for confirmation.

Users can track all vault activity directly on-chain using and block explorers for each original blockchain.

FabricScan