Layer Tree is a Bitcoin L2 built around a shared pool UTXO controlled by an n-of-n MuSig key held by a set of operators. The operators may be implemented as independently attested TEEs.
Users’ balances are represented by periodically signed exit trees. Each exit tree commits to the current allocation of the pool among users. Users can transfer funds offchain, withdraw cooperatively to L1, deposit from L1, or unilaterally exit through the latest available exit tree.
The protocol fundamentally relies on a 1-of-N honest operator assumption for safety and data availability, while normal operation requires N-of-N operator cooperation.