LayerZero And Eigen Labs Introduce New CryptoEconomic DVN Framework
In Brief
LayerZero Labs partnered with Eigen Labs to create a framework for CryptoEconomic DVNs, bolstering security through cryptoeconomic guarantees.
Blockchain messaging protocol developer LayerZero Labs partnered with Eigen Labs, a research organization, to co-create a framework for CryptoEconomic Decentralized Verifier Networks (DVNs). This collaboration aims to bolster security through cryptoeconomic guarantees.
The CryptoEconomic DVN Framework introduces a level of cryptoeconomic security to omnichain messaging, ensuring that verifiers are both technically competent and financially motivated to act with integrity. This framework enables projects to establish a DVN on EigenLayer, utilizing any tokens, operators, and slashing rules.
This framework is designed for any third-party DVN to adopt, enhancing security by integrating CryptoEconomic principles through the use of various tokens. It incorporates four fundamental mechanisms to secure LayerZero’s omnichain messaging: stake, verify, veto, and slash.
In this system, stakers lock assets, such as ZRO, EIGEN, or ETH, into a DVN’s AVS. These assets act as a financial safeguard, ensuring that the DVN operates in the best interest of the applications it supports. Additionally, users or applications can initiate a permissionless round-trip message that travels from Ethereum to the Source Chain, then to the Destination Chain, and back to Ethereum. This process verifies that the packet hash sent and confirmed by the DVN matches the packet hash recorded on-chain. If the hashes align, the veto process is bypassed.
However, if a mismatch occurs during message verification, a separate veto contract is activated on Ethereum, allowing token holders to vote on whether the offending DVN’s stake should be slashed. If the veto concludes that no malicious activity was committed by the DVN, the staked assets remain untouched. Conversely, if the veto confirms a packet mismatch, the assets staked in the DVN’s AVS will be slashed.
LayerZero DVNs And EigenLayer’s CryptoEconomic Security
The LayerZero Labs DVN is the first to implement this framework, a collaborative effort between LayerZero Labs and Eigen Labs. Users have the option to stake ZRO, EIGEN, and ETH into the LayerZero Labs DVN AVS staking contract.
In the event of a detected packet discrepancy, ZRO holders have the authority to vote on whether the staked assets should face penalties through slashing. This arrangement enhances the security for applications that rely on this DVN to authenticate LayerZero messages.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
