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News
Restaking Synopsis #2
Restaking rises, EigenLayer unveils Holesky Testnet in step closer to Mainnet 🚀💪
March 28, 2024
5 min read

Welcome back to the another edition of the (Re)staking Synopsis, your go-to source for the latest in Ethereum staking, presented by Chorus One.

Cutting right to the chase: EigenLayer now holds the second spot in Total Value Locked (TVL) for a protocol, boasting over $12.8 billion USD (~3.6 million ETH) restaked. Impressively, nearly 2 million ETH has been natively restaked via EigenPods, marking a significant surge in restaking activity.

Additionally, the EigenLayer and EigenDA Holesky Testnet is live and thriving, with a staggering total of 157,433.0897 ETH already restaked! After a seamless testing phase on Goerli, we're thrilled to support this new phase as we progress towards Mainnet operations.

With a meticulously crafted AVS strategy, we prioritize the safety of the funds delegated to Chorus One. Learn more about restaking with Chorus One: https://forum.eigenlayer.xyz/t/operators-mainnet-campaign/12828/145?u=chorusone

Without any further ado, let’s dive in.

Restaking In The News:
  1. Ethos works with liquid restaking protocols to secure Cosmos chains via EigenLayer
  2. EigenLayer teases mainnet's final roadmap before launch
  3. AltLayer enables token staking, unveils fast finality service for rollups
  4. Polyhedra Network and Renzo Secure Bitcoin Messaging with 1.8B USD Economic Staking

ETH Bites: On-chain Restaking Metrics

(Source: Dune Analytics)

  1. Total Restaked in USD: Over $12.8 billion (equivalent to 3.6 million ETH) has been restaked, at time of writing. In fact, EigenLayer has surpassed lending provider Aave to become the second-largest protocol by total value locked (TVL).
  1. Insights into Native Restaking: A significant volume of 1.96 million ETH has been restaked natively through EigenPods.
  1. Native vs LST restaking: Currently, 54.6% of ETH has been natively restaked, leading ahead of the 45.4% of restaked LSTs.

Staking and Restaking ETH with Chorus One
  1. Native Restaking: Want to stake ETH and restake directly with EigenLayer? Use OPUS Dedicated.

OPUS Dedicated enables you to set up dedicated ETH validators, and directly restake your staked ETH with EigenLayer in a few clicks.

Note: At present, you can only deposit your staked ETH into EigenLayer; the option to delegate to Chorus One will be possible upon the EigenLayer Mainnet.

We will notify you once the delegation feature on EigenLayer becomes operational, indicating that it's time to delegate your restaked ETH. At that point, you will be able to delegate to Chorus One with just a few clicks.

Visit OPUS Dedicated

How to restake ETH with EigenLayer

  1. Liquid Restaking: Want to stake ETH, mint osETH, and restake liquid staking tokens to EigenLayer? Use OPUS Pool


OPUS Pool enables you to stake any amount of ETH, mint osETH, and restake a variety of LST’s including osETH, cbETH, stETH, and more directly with EigenLayer in a just a few clicks.


Note: Restaking LSTs with EigenLayer is currently on hold and will resume once the deposit cap is raised. In the meantime, you are welcome to use OPUS Pool to stake any amount of ETH and mint osETH.

Visit OPUS Pool

How to Stake ETH and mint osETH

Latest Ethereum Research & Insights by Chorus One
  1. On the risks of restaking with EigenLayer and how Chorus One maintains a security first approach to your assets.

Read it here.

  1. MEV-Withdrawal Bug

MEV-Boost targets the highest bid for Ethereum block space. However, a glitch arises when blocks include withdrawals, distorting the MEV valuation and making some bids appear more valuable than they really are, leading to losses for proposers.

Beyond individual losses, this issue has wider implications for the Ethereum ecosystem, inflating proposers' profits, cutting down overall transactions and gas usage, and consequently, decreasing ETH burning.

Our research team analysed the full impact of this bug, originally published on ETHResearch.

Quick summary

Full research

  1. Client Diversity

We explore how Ethereum's resilience is shaped by client diversity, offering an in-depth analysis of two of its most prominent Consensus Layer (CL) clients: Lighthouse and Teku.

Read it here.

Final word

If you’re interested in staking/restaking with Chorus One, or learning more, simply reach out to us at info@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!


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.

Networks
Aleo: Presenting the Privacy-Centric Future of Blockchain
An introduction to Aleo, a layer 1 blockchain leveraging ZK-proofs to ensure privacy to users
March 14, 2024
5 min read

Imagine a world where online interactions don't come at the cost of your privacy. Where you can participate, transact, and share data on your own terms, shrouded in a cloak of cryptography. This is the future envisioned by Aleo, a revolutionary blockchain project that throws open the doors to a privacy-centric internet. Let's delve into Aleo, exploring its technology, participants, and the diverse ecosystem it cultivates.

Decoding what Aleo actually is?

At its core, Aleo is a layer-1 blockchain that leverages zero-knowledge proofs (ZKPs) to unlock unprecedented possibilities for private applications. ZKPs allow users to prove the legitimacy of information without revealing the underlying data itself. This translates to applications where users can participate, interact, and share data confidently, with their privacy remaining more sacred.

Key Terminologies

Credit: A credit is the native asset of the network. It is used to pay for deployment and execution fees of zero-knowledge programs. Credits can also be staked on the network as a form of governance to protect the integrity and security of the protocol.

Microcredit: A microcredit is a subdivision of the native asset (credit). One credit can be further divided into smaller units, and a microcredit is one millionth of a credit.

Prover: A prover is a node on the network that computes zero-knowledge proofs. These proofs, which can be of two types (solutions and transactions), are crucial for validating and securing transactions and activities on the network.

Solutions: In the context of zero-knowledge proofs, a solution attests to the execution of a randomly-sampled Aleo program. When a prover successfully proves the execution, a reward is distributed to both the prover and the stakers on the network.

Transactions: Transactions attest to the execution of user-deployed Aleo programs. When a prover provides a valid transaction proof, a transaction fee is rewarded and distributed to the network.

Stakers: These individuals contribute to the network's security by locking up their Aleo credits (ALEO), earning rewards in return.

Validators: Similar to traditional blockchains, validators verify transactions and secure the network, ensuring its integrity and preventing fraud.

The Technology Behind:

The robust architecture of Aleo rests on three key pillars:

  • Leo (Programming Language): A user-friendly Rust-based DSL designed to simplify ZKP development, removing the barrier for programmers less familiar with complex cryptography.
  • snarkOS (Network Layer): A permissionless and scalable network specifically built for ZK-powered smart contracts, enabling secure and private on-chain execution.
  • snarkVM (Virtual Machine): A powerful virtual machine optimized for ZKPs, delivering efficient proof generation and unlimited runtime, catering to even the most intricate applications.

Dive deep into Aleo’s consensus mechanism - AleoBFT

AleoBFT is a DAG-based BFT protocol inspired by Narwhal and Bullshark. Validators propose batches of transmissions, await 2ƒ + 1 signatures, certify the batch, and advance rounds synchronously for an honest majority. In odd rounds, validators elect a leader for the previous even round, ensuring availability thresholds are met. This process ensures all validators advance together, assuming honesty.

Here’s how the Quorum for Block Production in Even Rounds is achieved:

  1. Leader Election with ƒ + 1 Proposals from Next (Odd) Round:
  • Leader has a batch certificate in the even round with at least 2ƒ + 1 batch certificates from the prior (odd) round.
  • Leader has a batch certificate for the even round included by at least ƒ + 1 batch certificates for the next (odd) round.
  1. Quorum 2ƒ + 1 Achieved without Leader in Even Round:
  • If waiting for the leader times out, and the even round has more than 2ƒ + 1 batch certificates without the leader, validators can proceed without the leader.

The Fueling Force - Aleo Credits (ALEO):

The native token of the Aleo ecosystem, Aleo credits (ALEO), serve multiple purposes:

  • Staking: As mentioned earlier, users can stake Aleo credits to contribute to network security and earn rewards.
  • Fees: Certain network operations incur fees paid in Aleo credits, incentivizing proper resource utilization and network sustainability.
  • Governance: In the future, Aleo credits are envisioned to play a crucial role in community governance, allowing holders to participate in shaping the network's evolution.

How Aleo Credits are distributed:

Design of AleoBFT

AleoBFT operates over a simple set of data structures - a committee, batch proposal, and block. Let’s understand these one-by-one:

Committee:

  • Committee Formation and Membership: Validators, staking a minimum of 1,000,000 credits, govern a round collectively, deciding the BFT protocol until the next committee. It encompasses the starting round, total stake, and committee members with their stake and openness to delegators.
  • Bonding and Unbonding: Validators and delegators can bond and unbond each round, enabling new members to join or existing ones to leave. New validators require 1,000,000 credits, and existing validators must maintain this amount.
  • Leader Election: A cryptographic hash function selects the leader for each even round, considering the round number, number of validators, and their stake.

Batch Proposal: In each round, every committee member suggests a batch to certify, using batch proposals to communicate and maintain agreement on the DAG's status. Each batch proposal contains a Batch ID, Batch Header and a Batch Certificate.

Block: A block is created when the commit rule is activated in AleoBFT. It includes a block header, a sequence of batch certificates, ratifications, solutions, transactions, and a list of aborted transmission IDs.

Aleo’s Flourishing Ecosystem:

The true mark of a successful blockchain lies in its ability to foster a vibrant community and diverse applications. Aleo boasts a rapidly growing ecosystem with projects already exploring its potential across various domains:

  • Decentralized Finance (DeFi): Several DeFi projects are building privacy-preserving lending, borrowing, and trading protocols on Aleo.
  • Data Sharing and Management: Platforms are emerging to enable secure and controlled data sharing between individuals and organizations.
  • Supply Chain Management: Aleo's technology holds promise for tracking goods and materials through complex supply chains while safeguarding sensitive information.
  • Healthcare and Personal Data: Projects are exploring the use of Aleo for storing and managing highly sensitive medical and personal data securely.

Talking about recent updates - Aleo is now considered as one of the top 5 fastest-growing ecosystems for overall developers. Also, Aleo has completed the security audits of snarkOS & snarkVM, which was performed by Trail of Bits.

Aleo worked hard to make the technical details of the project easier to understand. They've simplified and explained the main basics in a straightforward way. For example:

Aleo’s Future:
  • Sustainability: Aleo is committed to eco-friendliness, utilizing a unique consensus mechanism called Proof-of-Stake with zkSNARKs (PoS zk) that consumes significantly less energy than traditional proof-of-work blockchains.
  • Strong Partnerships: The project boasts collaborations with industry leaders like Chainlink and Parity Technologies, indicating its potential for future growth and adoption.
  • Development Roadmap: While still under development, with its mainnet launch anticipated in the near future, the development roadmap showcases continuous improvements and exciting features on the horizon.

As a validator and staking infrastructure provider, Chorus One is deeply impressed by Aleo's groundbreaking approach to privacy in the blockchain space. The potential to unlock entirely new use cases and empower individuals with greater control over their data resonates deeply with our mission to build a more inclusive and accessible crypto ecosystem.

We're particularly excited about the unique technology stack, including snarkOS and snarkVM, which pave the way for scalable and efficient privacy-preserving applications. We believe Aleo has the potential to significantly impact various industries, from DeFi and healthcare to supply chain management, and Chorus One is proud to be a part of this journey. We are looking forward to actively contributing to the network's security and growth through staking infrastructure and look forward to witnessing Aleo's continued development and the exciting applications it enables.

Resources

Website: https://aleo.org/

Twitter: https://twitter.com/AleoHQ

Youtube: https://www.youtube.com/@AleoLabs/featured

Github: https://github.com/AleoHQ

Discord: https://discord.gg/aleo

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.

Opinion
On the Risks for Restaking ETH with Chorus One through Eigenlayer
Understand the risks inherent to restaking in Eignelayer and how Chorus One maintains a security first approach to your assets.
March 11, 2024
5 min read
Summary
  • OPUS Pool allows you to stake any amount of ETH, mint osETH as a liquid token and deposit your osETH into Eigenlayer (when the deposit cap is lifted). You can also restake LSTs and be an early depositor in the protocol, to allow a seamless delegation to Chorus One as soon as the option is enabled.
  • Before choosing to click on “restake”, you might want to consider some of the inherent risks to restaking your tokens. These include general staking risks, and risks specific to the Eigenlayer protocol.
  • Chorus One has a historical record of strong security practices. We have obtained the ISO 27001:2022 certification, have robust infrastructure with 24/7 on-call, and have never suffered any slashing incidents in our 6-years of service. Beyond that, we dedicate time to research best security practices and due diligence for all our networks.

As Ethereum restaking gains momentum, we wanted to take a moment to enumerate some of the risks that you as a user might be exposed to when choosing to restake your tokens. While restaking’s innovative consent can offer benefits to Ethereum staking, like generating more value for your staked tokens, it is also important to think clearly and consider some of these potential risks:

Slashing

As with any staking activity on Ethereum, your pledged ETH is subjected to networks rules that can result in the partial or total loss of your tokens, in the case of proven malicious activity that targets the network. Although slashing is a relatively rare occurrence (and has never happened to any of Chorus One’s validators), it is still the biggest risk you might be subjected to. When users are able to delegate tokens,  they would be susceptible to slashing penalties from both Ethereum and Actively Validated Services (AVS's).

Smart contract risk

A more common source of risk is related to the smart contracts that govern the protocols and services on Ethereum, as they are susceptible to bugs on their code that can be exploited, as well as unexpected behavior under untested conditions. Projects built on Eigenlayer (like our OPUS 'Pool' restaking fuctions) ultimately secure their funds within the contracts of Eigenlayer. In the event of an attack on the Eigenlayer contract, the funds of associated projects may be jeopardized. This would be true as well of the code associated with different AVSs.

Eigenlayer has been audited twice in the past, a first audit done by Consensys Diligence, and a second audit done by Sigma Prime. You can read more about the auditing process here: https://docs.eigenlayer.xyz/eigenlayer/security/audits

Additional risks

Although the first two would be the most definitive scenarios that could have a direct effect on your restaked assets, there’s another suite of known (and possible unknown) risks that can be linked to this new technology:

  • Lack of liquidity of your staked assets that are locked in Eigenlayer, plus 7-day delay to withdraw any funds.
  • Potential risks associated with the concentration of assets within the Restaking protocol.
  • Liquid staking tokens may experience price fluctuations or other consequences if enough accumulation occurs in their EigenLayer contracts.
  • In the case of native restaking, you have some consensus risk, because you’re setting the withdrawal address to an EigenPod. This might introduce some new incentives in the protocol.

Chorus One puts a premium on the security of all its users, recognizing its paramount importance in fostering trust and peace of mind. Through our comprehensive security framework, we ensure that your investments are well-protected: both, in our OPUS Pool and OPUS Dedicated products, in our underlying infrastructure, and at every step when deciding to onboard a network or protocol.

ISO 27001:2022 Certification

Chorus One adheres to stringent regulatory requirements, safeguarding your assets in accordance with data protection and privacy laws. In October 2023, we attained the coveted ISO 27001:2022 certification ensuring world-class security for all our customers.

Resilient infrastructure

We guarantee our high-quality of service with minimal disruptions, due to a strategic combination of multiple availability zones for our infrastructure; and network security procedures such as stringent access control, encrypted connections, firewall fortifications and security configurations. Our team is trained and provided with security awareness workshops to ensure our best line of defense.

Careful research process

Our dedicated research team conducts in depth due diligence on all the networks and protocols we onboard, to understand any potential risks we can be exposed to when participating on the systems. We go above and beyond to build a more security-minded ecosystem and to promote professional standards in the industry.

Learn more about Chorus One’s commitment to security here: https://security.chorus.one/

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.

Core Research
MEV-Boost Withdrawal Bug
We describe a bug we've encountered in mev-boost, the standard software validators used to solicit blocks from sophisticated, specialized entitites called builders on Ethereum.
March 11, 2024
5 min read

The following article is a summary of a recent ETHResearch contribution by Chorus One Research, which describes a bug we've encountered in mev-boost, the standard software validators used to solicit blocks from sophisticated, specialized entitites called builders on Ethereum. This bug is not specific to Chorus One; it can affect all Ethereum validators running mev-boost.

To read the full paper, please visit: https://chorus.one/reports-research/mev-boost-withdrawal-bug

--

Chorus One runs a proprietary version of mev-boost, dubbed Adagio, which optimizes for mev capture by optimizing latency.  Our commitment to Adagio obligates us to have an in-depth understanding of mev-boost and Ethereum's PBS setup in general. As such, we decided to dive deeper, and to make our findings available to the Ethereum community.

In practice, mev-boost facilitates an auction, where the winning builder commits to paying a certain amount of ETH for the right to provide the block that the validator proposing the next slot ("proposer") will include. This amount then accrues to an address provided by the validator, referred to as the "fee recipient".

Proposers and builders do not communicate directly, but exchange standardized messages via a third party called a "relay". The relay can determine the amount paid for a block by comparing the balance of the fee recipient at certain fixed times in the auction.

We have observed that in instances where the block in question coincidentally includes reward withdrawals due to the fee recipient, the relay has been unable to separate these withdrawals from the amount paid by the builder. This leads to an inflated value for the auction payment. This inaccuracy can negatively reflect on the Ethereum network under its current economic model (EIP-1559). Specifically, it may decrease the amount of transactions processed and decrease the amount of ETH burned, thus manifesting a small but measurable negative net outcome for the network overall.

For a deep dive, please visit: https://chorus.one/reports-research/mev-boost-withdrawal-bug

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.

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