Before getting started with this edition of the Restaking Synopsis, we’d like to take a moment to highlight our uniqueAVS Selection Framework, that we announced on Thursday, May 9th!
TL;DR:
Since EigenLayer launched, operators have been busy onboarding every AVS out there. But there’s only 1 problem with that - this may not be a wise long-term approach.
We've detailed why in an article (linked below), and to summarize, here's what sets our approach apart:
🛑 No "Onboard All" Promise: We prioritize AVSs with breakout potential, filtering out those with complexity and risk.
✅ Rigorous Criteria: Our selection filters are based on strict engineering, security, and economic factors.
🎖Quality Over Quantity: Only AVSs that meet our criteria will be onboarded.
This reflects our customer-first principle and long-term vision for the EigenLayer ecosystem.
Feel free to check out the full article for more details on our AVS Selection Framework, why we're taking this unique approach, and why this approach is an important consideration for EigenLayer users.
Read the entire article here: https://chorus.one/articles/the-chorus-one-approach-to-avs-selection
🌟BONUS: Here's a meme-thread explanation of our AVS Selection: https://x.com/ChorusOne/status/1788928433461903496
OPUS Pool enables you to seamlessly stake ETH, restake a variety of LST’s and delegate your restaked assets to Chorus One on a single platform.
✅ Stake, Restake, and Delegate using just a few, simple clicks
✅ Completely permissionless
✅ Easily view/download your entire historical staking rewards report
✅ View and track your restaked asssets
✅ All on a single platform
Visit OPUS Pool: https://opus.chorus.one/pool/stake/
Your guide to OPUS Pool: https://chorus.one/articles/your-guide-to-opus-pool-stake-mint-oseth-and-restake-with-eigenlayer
As of May 10, you can claim your EIGEN, restake it (if you haven’t already) and choose to delegate to an EigenLayer Operator for future rewards!
The steps?
1. Claim EIGEN here: http://claims.eigenfoundation.org
2. Restake it (if you haven’t already): http://app.eigenlayer.xyz/restake/EIGEN
3. Delegate your restaked assets to Chorus One: https://app.eigenlayer.xyz/operator/0xf80b7ba7e778abf08a63426886ca40189c7ef48a
Note: You can currently only restake and delegate your EIGEN via the EigenLayer dashboard.
If you’re interested in learning more about staking/restaking with Chorus One, simply reach out to us at staking@chorus.one and we’ll be happy to get back to you!
Additionally, if you’d like us to share further resources on any topic, please let us know!
Thanks for reading and see you next time!
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
Our EigenLayer strategy is to onboard all the AVSs that have chances of being break-out winners, while filtering out the long tail of AVSs that introduce complexity and risk. With this combination, we aim to deliver the best risk-adjusted reward APY to users delegating their restaked assets to by Chorus One. The first section covers our thesis, the second our onboarding policy and the third our track record.
The EigenLayer ecosystem will have hundreds of AVSs and be the leading mechanism for Ethereum to scale and service billions of users.
We expect individual AVSs to follow a power law distribution in competency and success, similar to the patterns observed elsewhere in crypto. For Cosmos, an application-specific ecosystem similar to EigenLayer, this data-set shows 6 chains have over $1 billion circulating market cap, 16 are between $100 million and $1 billion, and 42 are under $100 million. Most Cosmos chains never achieve significant success, with market caps exceeding $100 million. The median chain barely gains traction and struggles for attention and impact. In the broader crypto market, there are ~14,000 tokens (from CoinGecko). The median token is illiquid. All the realized alpha in crypto lies in the outliers - the top 500 chains with market caps above $90 million and sufficient liquidity. AVSs will be similar - all the returns will exist in the top 20% of AVSs.
Not only are successful AVSs the exception, but there is major alpha in early participation in promising projects with no defined market value. Most AVS projects will spend significant time in a pre-launch phase where the mainnet service does not exist. Testnets are rolled out while the developers build functionality and product features. During this phase, there is no clarity on the economics of reward delivery of the AVS. There is also no market cap, token supply, or token price information to rely on. There are likely also caps on the number of operators that can be enrolled by the project developers for testing. Because of the lack of information and transparency in the market, the overall ecosystem of Node Operators (NO’s) and restakers cannot perfectly judge the project. Hence, outsized yields, can be produced. The EIGEN token delivers the best example of such an opportunity - it delivered returns to early restakers in the 30%-60% range, depending on when exactly the restakers participated and how trading markets stabilize.
It is possible (and a mistake) to onboard the entire long-tail of AVSs. Such an approach will radically boost infrastructure complexity and risk. Complexity and risk lead to the need to charge high commissions, thus reducing the risk-adjusted APY for restakers. Eventually, it accentuates slashing risk. Technical due diligence, that tests for originality and legitimacy of software work, as well as application of software development best practices has always been and continues to be the best method for filtering out the long tail, and narrowing focus on the break-out winners.
We will apply our infrastructure effort in a subset of chains that pass our strict filtering criteria. When multiple AVSs pass our filtering criteria concurrently, our internal prioritization will look at the positive signals from the projects.
Our filtering criteria focuses on evaluating the software engineering of projects. Our method for evaluation consists of 3 parts:
Our filtering criteria focuses not on the easily molded exteriors of the project - the website, the podcasts or the marketing - but rather on the hard to change signal-rich factors that usually accompany a winning project in crypto.
When multiple AVSs cross our filter and require prioritization, we will prioritize them depending on the following signals:
We’ve applied a similar framework for our onboardings across Cosmos and in our venture investments. Chorus One is the most successful validator venture investor counting early participation in Solana, Lido, Celestia, Dymension, Saga, Wormhole, GogoPool, Neutron and Osmosis. In addition, we have infrastructure certifications highlighting the care with which we operate the networks.
Cosmos is the best example of an alternative application specific eco-system similar to EigenLayer. Our selection process, applied over 6 years has consistently picked all the top 20 chains, except two. On Cosmos, we have the best track record on participating with the governance processes of application specific chains.
Our early experience in EigenLayer, which includes research on network wide risk and slashing cascades, reinforces our belief in our onboarding process. We’ve encountered AVSs with plagiarized code, closed source code, and AVSs with key management systems that would expose our entire EigenLayer setup (operator key) to attack. These experiences have made it impossible for us to follow an “onboard all AVSs” path.
As a restaker with Chorus One, you derive the following benefits with our approach:
We will never be the operator with the most number of AVSs onboarded. And that works because it is far more critical to be early supporters of the break-out successes. Here’s to finding the gems early!
Seamlessly restake with Chorus One using OPUS Pool: https://opus.chorus.one/pool/stake/
Here's a step-by-step guide to using OPUS Pool: https://chorus.one/articles/your-guide-to-opus-pool-stake-mint-oseth-and-restake-with-eigenlayer
About Chorus One
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
Bitcoin's Layer 1, revered for its unparalleled security and decentralization, has faced scrutiny over its scalability, cost, and throughput limitations. These constraints catalyzed the emergence of alternative networks like Ethereum, designed with smart contracting capabilities at their core. However, the narrative is shifting. With the introduction of Layer 2 solutions that integrate DeFi functionalities to Bitcoin, it’s poised to expand its utility far beyond a store of value.
In this article, we delve into the intricacies of Bitcoin Layers, and explore some of the projects in the space we’re most excited about.
As a team that is continually researching new technologies and exploring promising narratives, we’re thrilled to expand our expertise in the Bitcoin economy and collaborate with key players building in this ecosystem.
Before delving into the nuances of Bitcoin Layer 2 solutions, let's take a step back and understand the core concept of Layer 2s. A Layer 2 is built on top of the base chain (Layer 1) to improve scalability and transaction throughput.
Bitcoin and Ethereum are Layer 1 protocols, serving as the settlement layer for all transactions on their respective networks. Layer 2 solutions offer a way to increase transaction speeds and scale the network while benefiting from the security of the main chain.
While numerous Layer 2 solutions, such as rollups, side chains, and channels, are already building on Ethereum, and Bitcoin Layer 2s have been in development for some time, several projects are now closer to launching and expanding Bitcoin's utility. However, scaling Bitcoin presents unique intricacies that need to be addressed.
The most crucial requirement for a Bitcoin Layer 2 solution lies in deriving its security from Bitcoin's own security model, a task that proves challenging in practice. To effectively secure a Layer 2, Bitcoin must possess the computational capability to validate the behavior of the Layer 2. However, Bitcoin's current computational capacity falls short compared to Ethereum's Layer 2 solutions.
For instance, Ethereum rollups derive their security from the Layer 1 by either verifying a zero-knowledge proof (zk-rollup) or confirming a fraud proof (optimistic rollup). Nevertheless, there are ongoing proposals aimed at enhancing Bitcoin's functionality to enable the base layer to validate zk-Proofs submitted by rollups. Additionally, initiatives like BitVM strive to implement fraud proofs without necessitating alterations to the base layer.
While solutions are emerging to address this challenge, they bring their own set of architectural choices and leverage novel technologies to find viable solutions. As the development of Bitcoin Layer 2s progresses, the ecosystem will need to carefully evaluate the trade-offs and implications of each approach.
Bitcoin's Layer 2 solutions face unique challenges in trying to improve upon the base layer. These challenges revolve around three main goals: handling more transactions, maintaining robust security, and ensuring that the system remains decentralized. Here's a simpler look at each goal:
By focusing on these three areas, Bitcoin's Layer 2 aims to enhance the base layer's capabilities while adhering to the principles of scalability, security, and decentralization. This approach ensures that the network can grow and adapt to new demands without compromising on its core values.
In this section, we explore a few Bitcoin L2s that we’re excited about, and provide a quick overview of the project.
Overview: Stacks brings smart contracts and decentralized apps to Bitcoin using a unique Proof-of-Transfer (PoX) mechanism. Key Features:
Overview: Designed for fast and cost-effective micropayments on Bitcoin.
Key Features:
Overview: Introduces Ethereum-compatible smart contracts to Bitcoin.
Key Features:
Overview: Builds on BTC to EVM bridging technologies, offering a novel dual-token staking model via $HODL.
Key Features:
Overview: The first implementation using BitVM, focusing on scalable and efficient transaction processing.
Key Features:
Overview: Merges Proof-of-Stake with Bitcoin’s robustness, focusing on cross-chain functionalities to offer Bitcoin restaking.
Key Features:
Overview: Offers private and scalable off-chain Bitcoin payments.
Key Features:
Overview: Implements a zk-rollup model to improve transaction efficiency and security on Bitcoin.
Key Features:
Overview: An Ethereum-based Proof-of-Stake Layer 2 that uses Bitcoin as its core asset for staking and governance.
Key Features:
Overview: A zk-rollup solution that stores proofs and transaction data directly on Bitcoin's blockchain.
Key Features:
Overview: BOB is an Ethereum-based Layer 2 solution designed to integrate closely with Bitcoin, maintaining alignment with Bitcoin's principles.
Key Features:
Overview: Twilight offers a platform for deploying privacy-focused decentralized exchanges and other applications, using advanced cryptographic methods to ensure security and privacy.
Key Features:
…and more! Stay tuned for Part 2, where we'll delve into even more exciting projects emerging within the ecosystem.
As a forward-thinking infrastructure provider, Chorus One is thrilled about the immense potential of integrating DeFi functionalities into Bitcoin and witnessing its evolution beyond being a store of value. Engaging in in-depth research into promising new technologies and projects, we're excited to explore a new landscape beyond Proof of Stake-based networks.
We're actively collaborating with L2s to delve deeper into the ecosystem. If you're interested in learning more or getting involved with some of the projects we're working with, please reach out to us at staking@chorus.one. We'd be delighted to connect with you.
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
In blockchains that utilize Proof of Stake, staking allows users to receive rewards by locking tokens to aid in validating transactions and securing the network. Staking services lower barriers to entry by handling technical complexity. Users can stake any tokens without the need to run validators.
At Chorus One, we are happy to announce that we will provide Staking-as-a-Service (SaaS) solution to users at the Lava mainnet launch. Lava network is a protocol that serves as a gateway for applications to access trustworthy, secure, and swift RPC services. Unlike conventional methods that hinge on centralized or public RPC endpoints, Lava Network leverages a decentralized array of premier service providers.
At the cutting edge of blockchain accessibility, Lava provides a user-friendly and scalable solution to tackle the crucial requirement for an Access layer in the blockchain infrastructure. The network makes it very easy for blockchains and rollups to bootstrap a set of infrastructure providers, so users and developers can onboard smoothly.
Lava is an application-specific marketplace for decentralized blockchain Remote Procedure Calls (RPC) and APIs based on CosmosSDK. Lava is designed to enhance access scalability to various blockchains. This network has the ability to accommodate any RPC and API in a flexible manner,. Lava boasts of a lightning-fast network that is hyper-scalable, and permissionless with nearly 100% uptime.
A Remote Procedure Call, or RPC, is a lightweight software communication protocol, that allows for developers to run code that can be executed on servers remotely.
On Lava, blockchain and rollup developers can quickly bootstrap a network of infrastructure providers, without waiting for major providers to add support. The protocol's initial focus is directed towards RPC infrastructure, a service that aids developers to access over 30 diverse chains, from EVM to Cosmos.
In this section, we break down the different architectural elements of the Lava Network:
Specs - Specs, otherwise called Specifications, are the foundational blueprints for Lava's multichain support, outlined in JSON format. These specifications delineate the minimum requirements necessary for an API to function on Lava effectively. Through these specs, Lava identifies the supported chains and methods while also setting up the associated costs, prerequisites, and validations. Each time the ecosystem requires a fresh API, a new specification is seamlessly integrated. This flexible method seamlessly weaves modularity into the protocol, guaranteeing that Lava stays up-to-date and flexible.
Peer-to-Peer Lava SDK - The Lava SDK is a decentralized, peer-to-peer blockchain RPC for developers who are exploring the cross-chain functionality the ecosystem is offering. It offers a simplified setup for multi-chain RPC, where adding a new chain can be done with a few lines of code. The Lava-SDK is a JavaScript/TypeScript library that was built to provide decentralized access to all chains supported by the Lava ecosystem. It further provides necessary tools for server and online environments, simplifying the process of building decentralized applications and interacting with multiple blockchains.
Gateway - Lava Gateway is a user-friendly web platform for developers that provides instant access to blockchain data. The Gateway makes use of the Lava Server Kit to offer a hosted entry point for developers seeking RPC via the Lava Network. This setup enables users to handle and set up Web3 APIs using user-friendly controls right from their browser. While the Lava Server Kit and SDK offer enhanced control and permissionless features, the Lava Gateway grants similar entry to our base network along with extra conveniences like project management utilities and user accounts.
The Lava mainnet is scheduled to launch soon while the team focuses on delivering an easy, fast multi-chain experience. The team published their Tokenomics today, which is available here.
Token details for LAVA stakers:
• LAVA is used to reward infrastructure providers on Lava
• Providers can earn native tokens from chains/rollups supported by the network
• LAVA can be restaked to earn additional yield and lower security fees
• LAVA has a capped supply with deflationary mechanisms
Lava Network is a modular network that focuses on giving blockchains and rollups a performant and reliable access layer. RPC is the first supported use-case, but other services related to data access will be added soon e.g. indexing.
To read more about Lava Network, we recommend the official documentation available in docs.lavanet.xyz.
We currently support infrastructure for over 50 networks, and we're thrilled to announce that Chorus One will be providing staking services to users as the Lava team heads towards the mainnet.
Chorus One Ventures is an early investor in LAVA, and has been supporting the project since its inception. Chorus One’s impeccable reputation, along with its thorough risk management protocols and collaborations with insurance providers, highlights the priority placed on safeguarding, ensuring the security of your LAVA staking activities remains untarnished.
For any other questions or to stake LAVA with Chorus One, reach out to staking@chorus.one
Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.