Background

Since Bifrost KSM LST (vKSM) is staked by three Sovereign derived addresses, remotely controlled by the Bifrost runtime pallet. Below illustrates how to verify derived addresses are keyless and how are they calculated via the Sovereign address.

Verification Process

Bifrost Sovereign address: F7fq1jMmNj5j2jAHcBxgM26JzUn2N4duXu1U4UZNdkfZEPV

• Derived address #1: DFw6MtEaT5PSZHzd43UW2YnEx4GNzAfCzejruhBt1tnBJaF
• Derived address #2: DgB3P2Rwvbb2ZsUgWKRMJwuDUq92HqiM295ezLsJT5GSeKd
• Derived address #3: J3Kp9LPQpRvVmJmmEuYJjW2UFnSQptZ3pbpSZbFLLgWF7WR
• Derived address #4: DNaN64ohZRko1c7PbrgK1LJC96yQdZ23241H2erKUz7XQwy
• Derived address #5: EckcmXbCj4huvNLP5btMFmJz8SzEt5s8hgKcL6LM8BtZeAf

These addresses are keyless derived addresses generated by the Bifrost Sovereign Address through calculation, used for KSM Staking behind vKSM. The calculation method can be found at: https://github.com/bifrost-finance/bifrost/blob/d21077ad1c2376076702de5c4d4e1466024b6f12/runtime/bifrost-kusama/src/lib.rs#L1178

Below is the code to verify that derivative addresses are calculated from the Bifrost sovereign address:

#[test]
fn generate_derivative_account() {
	ExtBuilder::default().build().execute_with(|| {
		// PublicKey: 0x70617261d1070000000000000000000000000000000000000000000000000000
		// AccountId(42): 5Ec4AhPV91i9yNuiWuNunPf6AQCYDhFTTA4G5QCbtqYApH9E
		let sovereign_account = <ParaId as AccountIdConversion<AccountId>>::into_account_truncating(&ParaId::from(
			2001
		));

		// PublicKey: 0x5a53736d8e96f1c007cf0d630acf5209b20611617af23ce924c8e25328eb5d28
		// AccountId(42): 5E78xTBiaN3nAGYtcNnqTJQJqYAkSDGggKqaDfpNsKyPpbcb
		let sovereign_account_derivative_0 = Utility::derivative_account_id(sovereign_account.clone(), 0);
		assert_eq!(
			sovereign_account_derivative_0,
			AccountId::from_ss58check("5E78xTBiaN3nAGYtcNnqTJQJqYAkSDGggKqaDfpNsKyPpbcb").unwrap()
		);
		// PublicKey: 0xf1c5ca0368e7a567945a59aaea92b9be1e0794fe5e077d017462b7ce8fc1ed7c
		// AccountId(42): 5HXi9pzWnTQzk7VKzY6VQn92KfWCcA5NbSm53uKHrYU1VsjP
		let sovereign_account_derivative_1 = Utility::derivative_account_id(sovereign_account.clone(), 1);
		assert_eq!(
			sovereign_account_derivative_1,
			AccountId::from_ss58check("5HXi9pzWnTQzk7VKzY6VQn92KfWCcA5NbSm53uKHrYU1VsjP").unwrap()
		);
		// PublicKey: 0x1e365411cfd0b0f78466be433a2ec5f7d545c5e28cb2e9a31ce97d4a28447dfc
		// AccountId(42): 5CkKS3YMx64TguUYrMERc5Bn6Mn2aKMUkcozUFREQDgHS3Tv
		let sovereign_account_derivative_2 = Utility::derivative_account_id(sovereign_account.clone(), 2);
		assert_eq!(
			sovereign_account_derivative_2,
			AccountId::from_ss58check("5CkKS3YMx64TguUYrMERc5Bn6Mn2aKMUkcozUFREQDgHS3Tv").unwrap()
		);
	})
}