Mangata security: escape hatches and the master rollup design
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Explains rollup escape hatches and safety versus liveness, then how Mangata's master rollup sequences for several L1s with EigenLayer settlement so deposits stay withdrawable even if connected chains are down. ZK validation uses StarkWare tech.
Key claims
Every deposit is withdrawable through escape hatches to connected chains
ZK state validation uses StarkWare technology
Rollup liveness needs prover, contract and sequencer all online
The bull cycle is upon us and @eigencloud season is about to hit us in full force.
It's time to position yourself on the major ecosystem plays!
My high-conviction bet is a highly secure ZK rollup-based omni-chain liquidity protocol built on EigenLayer.
Alpha-🧵
1/ I've been researching @eigencloud and its ecosystem since I first read about it back in 2022.
Along the way I found many interesting projects but the one that probably resonated most with me is this cross-chain AMM DEX.
Are you ready for alpha, anon?
2/ This protocol's ground-breaking, @eigencloud-based architecture enables functionality that goes far beyond traditional AMM protocols.
In a deep-dive thread series starting today, I will showcase my research findings and introduce you its USPs.
Today we talk tech & security!
3/ But before we dive into the tech, let me give you my thesis on why a @Thorchain-style, omni-chain AMM built on @eigencloud to enable secure & scalable trading matters.
We're entering a bull market. Trading volumes and especially DEX volumes will skyrocket to new dimensions.
4/ Protocols that can successfully capture these volumes, will be among the biggest opportunities of the cycle.
This requires top-notch UX, security and execution.
The project I'm covering today can definitely cater to that.
5/ We're heading into a multi-chain future defined by a fragmentation of liquidity and users across an increasing number of (modular) execution layers.
Demand for secure cross-chain asset swaps will skyrocket.
The project I'm covering today can definitely cater to that.
6/ You get where I'm going with this, anon?
@MangataFinance will take DEX-trading to the next level.
This combination of addressing a key bullrun demand (trading) and being a first mover on @eigencloud makes this one of my main bets of the cycle.
7/ So, let's dive into the tech.
The focus today is the high-level network architecture and the role that rollup escape hatches play in ensuring a secure, fully non-custodial cross-chain trading experience on @MangataFinance
8/ Wait, what is a rollup escape hatch?
Let's take one step back. As you probably know, rollups are an increasingly popular type of L2 scaling solution for slow but secure blockchains like Ethereum.
9/ A rollup performs computation of blockchain state updates off-chain but posts the inputs and the data to the underlying L1, in order to benefit from its security.
10/ However, if rollup operators go offline, state updates are no longer possible via the rollup.
Instead, state updates to the L2 state must be forced on the underlying L1.
This mechanism is the "escape hatch". It allows state and assets to escape from an inoperative rollup.
11/ This feature is critical for the security of any rollup in case something goes wrong.
Naturally, we hope they don’t, but preparing for the worst case scenario is just good security practice.
12/ But what does security actually mean in the context of rollups?
Often, it is broken down into two main properties 👇
13/ 🔒 Safety
Ensures that everyone agrees on the state of the blockchain, e.g. which transactions have been confirmed.
This is generally achieved through state validation on L1 like validity proof schemes or optimistic fraud proving mechanisms.
14/ 📊 Liveness
Ensures that the system actually processes transactions, i.e. is online. Loss of liveness is not only a nuisance but can also pose security issues.
The liveness of any system hangs on its weakest link.
15/ For a rollup system to be live, the rollup prover, the smart contract, and the sequencer all have to be live and functioning.
If even one of them goes offline, the entire system goes offline.
16/ Okay I get it, but why does this matter in the @MangataFinance case?
Well, Mangata is pioneering an entirely novel rollup architecture that it refers to as the Master-Rollup.
A rollup that’s simultaneously connected to multiple L1s/L2s and using @eigencloud for settlement.
17/ @MangataFinance's master ZK rollup is a L2 solution (with a decentralized set of validators/proposers), that is simultaneously sequencing for multiple L1s in parallel.
Ethereum sees it as its own rollup, other EVM network sees it as it’s own rollup too, and so on.
18/ This allows @MangataFinance to coordinate communication between respective L1s/L2s seamlessly.
Speed and cost efficiency are ensured through the off-chain computation inherent to rollups.
19/ Security is ensured through a robust rollup architecture (which we will explore another day), and (I'm sure you guessed it) escape hatches.
Post-FTX we probably all feel slightly anxious when depositing assets to a CEX.
20/ Why? Because at the end of the day, we have to trust the CEX operators not to spend our funds on beach houses in the Bahamas.
The same holds true for many rollups & app-chains out there, that lack safeguards for the case something goes wrong (or the team turns malicious).
21/ @MangataFinance fixes this.
Every deposit on Mangata and in liquidity is always 100% withdrawable from the Master Rollup through escape hatches to all connected chains.
The custody is always in the hands of a user.
22/ Currently, there is not a stronger security proposition on the market for cross-chain value exchange.
Especially considering the chain-agnostic nature of @MangataFinance, you can literally even withdraw if one or multiple of the underlying L1s are down.
23/ But that's not all:
▶️ All x-chain asset transfers happen through native L1<>L2 & L2<>L3 communication
▶️ ZK proof based state validation (with @StarkWareLtd's battle-tested ZK tech) ensures execution correctness
▶️ Decentralized validator/proposer set to bolster liveness
24/ Security is often neglected in crypto.
The problem is it doesn't matter until it really does.
However, robust security is key for any protocol's long-term sustainability.
Especially if you're a cross-chain AMM DEX that aims to take the cake from CEXes like @MangataFinance.
25/ During my research, I looked into many cross-chain trading protocols.
None of them offer a comparable level of security.
It's one of many reasons I'm hyper-bullish on @MangataFinance.
More info soon. Don't fade this one, anon.
26/ If you want to learn more, make sure to also check out my intro post on @MangataFinance from back in December! 👇
x.com/zerokn0wledge_/status/1737443087339675978
I hope you've found this thread helpful! 🫡
Stay tuned to learn about gas-free & MEV-minimized trading on @MangataFinance next week and follow me @zerokn0wledge_ to stay up to date on all things @eigencloud! 👀 ✨
Like/Repost of the below post highly appreciated! 🙏👇
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