Restaked rollups: AltLayer's VITAL, MACH and SQUAD AVSes on EigenLayer
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Explains the services rollups depend on (sequencing, MEV policy, fast finality, watchers, DA) and how AltLayer bundles them as Restaked Rollups via three EigenLayer AVSes: VITAL for verification, MACH for fast finality and SQUAD for decentralized sequencing.
Key claims
SQUAD validators must stake a minimum of LSTs and can be slashed
MACH supports pessimistic, optimistic and validity proof modes
Restaked Rollups work with any rollup stack and DA layer
Eigenlayer will be one of the most significant protocol launches since Ethereum! 🚀
It will also be the biggest airdrop ever! 🪂
Today, I will show you the powers of @eigencloud x @alt_layer and introduce you to a novel type of rollup design!
Alpha-🧵
1/ @eigencloud season is upon us & it will be BIG! 🤯
To spot undervalued gems before everyone & make life-changing gains, you need to understand the killer use cases early!
Let me share a TLDR of hours of research on how @alt_layer will revolutionize rollups on EigenLayer! 🔍
2/ Ethereum proposed the rollup-centric roadmap in order to scale by executing transactions off-chain.
Execution correctness is ensured through validity or fault proofs.
Rollups have gained a lot of traction already with >30 rollups live on mainnet & $20 in TVL already! 📊
3/ Rollups are complex systems!
They need several auxiliary services to attain full functionality. Currently, many rollups still run on training wheels & make compromises on decentralization.
With @eigencloud, this changes!
Let's explore some of the key auxiliary services! 👇
4/ 🌐 Decentralized sequencers:
With decentralized sequencing, rollups obtain low-latency censorship resistance.
Decentralized sequencers come in different flavors. Some perform fully shared sequencing, and some are rollup or tech stack specific.
5/ 🤖 MEV management:
There are multiple MEV policies that can be used for sequencers:
▶️ MEV auctions
▶️ Threshold encryption
▶️ First-come, first-served
6/ ⚡️ Fast Finality Mechanisms:
Sequencers provide a type of soft finality (a promise for future block inclusion basically).
To improve on the robustness of these guarantees, rollups require economic safety guarantees.
7/ 👁 Watcher networks:
In the optimistic setting, watcher networks ncentivize nodes to watch sequencers submitting transaction bundles to L1 and raise fault-proof challenges.
8/ 💾 External DA Services:
Rollups need data availability (DA).
DA on Ethereum is very secure, but also very expensive.
Modular alt-DA layers such as EigenDA can help achieve different points on the security-cost tradeoff curve.
9/ 🚀 Fast Composability & Bridging Services:
Eigenlayer can empower fast bridging across different rollups secured by an economic stake.
Some fast bridging designs require a new hub, whereas others are direct peer-to-peer.
Both need economic security mechanisms.
10/ @eigencloud is a general-purpose system for programmable trust.
It can be utilized to build out generalizable middleware services to fulfill several of these functionalities.
11/ EigenLayer provides the following features:
▶️ Pooled Economic Security (more secure)
▶️ Attributable Economic Security (pay on demand)
▶️ Decentralized Operator Sets (decentralization as a service)
12/ So what are Restaked Rollups (RR)?
RR are a new category of EigenLayer AVS.
They combine several of the services into a single bundle so that rollup users can benefit from a single-point integration while benefiting from several features.
13/ With @alt_layer, @eigencloud is bringing together these features into a RR framework.
The framework combines the restaking mechanism with AltLayer’s end-to-end infrastructure bundle.
It includes decentralized sequencing, verification, & fast finality on @eigencloud!
14/ Restaked Rollups are built on key principles:
▶️ Modularity so it can work with any rollup stack & modular component
▶️ Crypto-economic security
▶️ Support both ZK as well as optimistic rollups
▶️ Generic enough to support different proof systems and VMs
15/ Let's have a brief look at the @eigencloud based components in this system! 👇
16/ ✅ VITAL
Acts as an enshrined verification layer for rollups.
It consists of a network of AVS-registered operators that verify new states proposed across by SQUAD operators.
It operators detect invalid state roots & can challenge SQUAD operators in a bisection protocol.
17/ ⚡️ MACH
To address the slow finality of rollups, enter MACH, a fast finality layer for Ethereum rollups!
To guarantee finality, MACH as a network needs to verify the validity of a rollup state.
This ensures that operators followed the state transition function correctly.
18/ MACH supports three state validity modes.
▶️ Pessimistic Mode
▶️ Optimistic Mode
▶️ Validity Proof Mode
19/ 🌐 SQUAD
SQUAD is a rollup-dedicated decentralized sequencer network.
Simply put, SQUAD is a network of nodes open for anyone to join after the registration at the AVS.
20/ To become a validator for the SQUAD, a node has to stake a certain minimum number of LSTs.
This provides the economic guarantee for the security of the rollup and can be potentially slashed.
21/ Operators can bring in the minimum required LST stake themselves or implement a delegated staking mechanism allowing LST holders to stake with the operator.
Staking on the SQUAD is implemented natively at AVS contract.
22/ 🔍 Conclusion
RR are new rollup design that provides decentralized sequencing, verification & fast finality via three vertically integrated AVSes.
These AVSes can work with any rollup stack, any DA layer of choice & can be useful to build trust in the long-tail of rollups.
23/ I will watch any project launching on this closely.
Don't fade the frontier of rollup innovation, it's where you find the gems that can change your life!
Also, @eigencloud won't be the only big airdrop... Are you positioned for a potential @alt_layer airdrop anon? 🪂 👀
Tagging some chads you should definitely follow! 🫡 👇
@ShivanshuMadan
@0xDinoEggs
@modularmedia_
@therollupco
@alice_und_bob
@Louround_
@0xSalazar
@andyyy
@0xDinoEggs
@WinterSoldierxz
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@thesaint_
@0xSalazar
And some more! 🫡👇
@CJCJCJCJ_
@francescoweb3
@Hercules_Defi
@0xJermo
@andrewmoh
@splinter0n
@wacy_time1
@DefiIgnas
@2lambro
@CryptoMaestro
I hope you've found this thread helpful! 🫡
Follow me @zerokn0wledge_, @eigencloud and @alt_layer to stay up to date! 👀
Like/Repost of the below post is also highly appreciated! 🙏👇
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