CORE-LAYER: A Restaking Primitive for CoreDelta

General Discussion
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CORE-LAYER: Revolutionizing Restaking in the Core Delta Ecosystem

CORE-LAYER marks a revolutionary stride, introducing a restaking protocol that reshapes the dynamics of asset utilization, security, and yield optimization.

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EDIT: TL:DR

  • CORE-LAYER is a restaking primitive for CORE Delta using Eigenlayer as an inspiration but with locked liquidity as an additional layer of security.

  • Key Features include locked liquidity, hyper-deflationary measures, vested strategies, MEV integration, and native asset redemption.

  • Native LST are CoreETH, for locked ETH and DeltaETH for vested ETH. The redemption mechanism involves burning Core for ETH and DELTA for native ETH, ensuring a secure flow within the Core Delta Ecosystem Layer.

  • cVault Finance can ZAP any LST or LPs containing LSTs into coreETH and deltaETH respectively.

CORE-LAYER introduces a groundbreaking restaking protocol within the Core Delta ecosystem, departing from EigenLayer to build a more robust StakingLayer. Seamlessly integrating EigenLayer’s principles, it optimizes asset utilization, mitigates risks, and fosters a decentralized environment. Key features include locked liquidity, hyper-deflationary measures, vested strategies, MEV integration, native asset redemption, and on-chain exit positions. The introduction of CoreETH and DeltaETH as distinct liquidity restaking tokens adds flexibility, and integrations span advanced economic incentives, liquid derivatives, simplified staking, non-custodial transformations, strategic restaking, locked liquidity, incentive aggregation, and innovative derivatives. The redemption mechanism involves burning Core for ETH and DELTA for native ETH, ensuring a secure flow within the Core Delta Ecosystem Layer.

Foundational Principles of CORE-LAYER:

CORE-LAYER doesn’t build on EigenLayer; it forges a more robust StakingLayer within the Core Delta ecosystem. Core Delta participants gain access to a restaking mechanism that optimizes asset utilization, mitigates risks, and fosters a decentralized, participatory, and risk-aware environment.

Distinctive Features of CORE-LAYER:

Locked Liquidity and Hyper-Deflationary Measures:

  • CORE-LAYER integrates locked liquidity for heightened security. The protocol further boosts token scarcity and value over time through hyper-deflationary measures.

Vested Strategies and MEV Integration:

  • CORE-LAYER introduces vested strategies and MEV (Miner Extractable Value) capabilities. This encourages prolonged engagement and introduces advanced arbitrage modules for superior asset management, yield optimization, and risk mitigation within the Core Delta ecosystem.

Native Asset Redemption and On-Chain Vested Exit Positions:

  • CORE-LAYER pioneers the concept of burning CORE or DELTA for redeeming native ETH. Additionally, the protocol introduces on-chain vested exit positions, enabling secure and programmable exit strategies directly on the blockchain.

Floor Price Compounding and Liquidity Shield:

  • CORE-LAYER facilitates floor price compounding. Coupled with locked liquidity, staking rewards and hyper-deflationary measures, this establishes a robust liquidity shield against external attacks and market fluctuations, ensuring a resilient Core Delta ecosystem.

Superior Yield, Risk Mitigation, and Modular Liquid Staking:

  • CORE-LAYER optimizes returns, minimizes risk, and introduces modular liquid staking via locked liquidity mechanisms.

Inception of Liquid Derivatives:

  • CORE-LAYER introduces liquid derivatives. Participants can repurpose staked assets (stETH example), enhancing security and unlocking additional rewards.

Core Delta Ecosystem Layer:

In the ongoing evolution of the Core Delta ecosystem, CORE-LAYER introduces two distinct liquidity restaking tokens: CoreETH and DeltaETH. These tokens represent locked ETH managed by Core and vested ETH managed by Delta, respectively, adding a new layer of flexibility and value creation to the ecosystem.

Key Integrations within the Core Delta Ecosystem Layer:

Advanced Economic Incentives:

  • The Core Delta Layer fortifies Ethereum’s security through advanced economic incentives, rewarding participants for maintaining network integrity.

Liquid Derivatives for Asset Utilization:

  • Core Delta explores the introduction of coreETH, a liquid staking derivative, empowering users to maximize asset utilization while participating in staking.

Simplified Liquid Staking Solutions:

  • Core Delta introduces streamlined liquid staking solutions, addressing liquidity challenges and providing benefits for participants, validators, and node operators, all under the umbrella of CoreETH and DeltaETH.

Non-Custodial Staking with Token Transformation:

  • Core Delta adopts a non-custodial approach, allowing users to seamlessly transform staked assets into two versatile tokens - CoreETH and DeltaETH - representing distinct management structures.

Strategic Restaking Management:

  • Core Delta introduces a user-friendly interface for strategic restaking, focusing on securing validated services and optimizing yields with CoreETH and DeltaETH as the primary tokens.

Pioneering Locked Liquidity and Modular Liquid Staking:

  • Core Delta pioneers the integration of locked liquidity, enhancing security while allowing users to earn staking rewards and native ecosystem rewards using CoreETH and DeltaETH as the core tokens.

Cryptoeconomic Security Primitive:

  • Core Delta incorporates cryptoeconomic principles to repurpose staked assets securely, enhancing the overall security of the ecosystem with CoreETH and DeltaETH as foundational tokens.

Incentive Aggregation from Other Products:

  • Incentives from staking, options, DEX, LP futures, and more can be seamlessly aggregated into CORE-LAYER, creating a holistic and rewarding experience for participants.

Innovative Liquid Derivatives for DeFi:

  • Core Delta explores the introduction of innovative liquid derivatives, offering tradeability and usability in DeFi while mitigating risks associated with basket-based tokens, all tied to CoreETH and DeltaETH.

Decentralized Restaking for Network Security:

  • Core Delta integrates decentralized restaking mechanisms, encouraging users to actively participate in the validation of services and earn rewards, leveraging CoreETH and DeltaETH for enhanced network security.

The redemption mechanism involves converting CoreETH into DeltaETH by burning Core and converting DeltaETH into native ETH by burning DELTA, creating a seamless and secure flow within the Core Delta Ecosystem Layer. This dual liquidity restaking token system enhances user flexibility, security, and overall value creation.

Brief explanation of the protocols used to build this idea:

Eigenlayer

EigenLayer fortifies Ethereum’s security through economic incentives and cryptographic methods like hashing and digital signatures. It ensures the integrity of critical services, introduces liquid staking for flexible asset utilization, and enables delegation through Ethereum smart contracts.

Claystack

ClayStack’s Ethereum liquid staking protocol revolutionizes staking by introducing csETH, a liquid staking derivative, and employs innovative technologies like Decentralized Validation Technology (DVT) and the Validator Funding Provider (VFP) protocol.

Vector
Vector Reserve is a crypto investment platform leveraging vETH, VEC tokens, and innovative financial tools to optimize returns and minimize risk. Key components include vETH, a stable yield-generating asset, and VEC tokens, the backbone of the platform, incentivizing liquidity provision.

KelpDAO
Kelp DAO specializes in Liquid Restaking Solutions, introducing rsETH as a Liquid Restaked Token on EigenLayer for Ethereum. rsETH addresses liquidity challenges in restaking platforms, offering benefits for restakers, AVSs (Application-Specific Validators), and Node Operators.

Etherfi

Ether.fi is a decentralized finance (DeFi) protocol operating on Ethereum, specializing in non-custodial staking. It transforms staked Ethereum (ETH) into eETH tokens, enabling users to participate in liquid staking, earn rewards, and engage in the broader DeFi ecosyste

Renzo
Renzo is a Liquid Restaking Token (LRT) and Strategy Manager designed for EigenLayer, providing a user-friendly interface to the EigenLayer ecosystem. It focuses on securing Actively Validated Services (AVSs) and offers higher yields compared to traditional ETH staking.

Swell
Swell Protocol is a non-custodial liquid staking platform designed to simplify access to decentralized finance (DeFi) for Ethereum (ETH) holders. It aims to provide a secure, decentralized, and transparent financial future for users, especially in the context of Ethereum’s transition to proof-of-stake.

Restake Finance
Restake Finance is a pioneering protocol on Ethereum that introduces modular liquid staking through EigenLayer. It facilitates restaking of Ethereum, enabling users to earn staking rewards and EigenLayer native rewards without locking their assets.

GenesisLRT
GenesisLRT, operating on EigenLayer, introduces restaking as a cryptoeconomic security primitive. Users can repurpose staked ETH via EigenLayer’s smart contracts, enhancing security and earning additional rewards.

Rest Finance

Rest Finance introduces restETH, a liquid derivative of EigenLayer-restaked ETH. Built on Ethereum, RestETH enhances Ethereum staking by enabling users to earn restaking rewards without managing infrastructure or facing asset lock-up. The protocol is supported by the REST governance and utility token, emphasizing security through EigenLayer’s smart contracts.

InceptionLRT

InceptionLRT is a Liquid Restaking protocol, primarily focusing on stETH and rETH, powered by the Inception Protocol. It introduces Isolated Liquid Restaking Tokens (iLRTs) for each restaked Liquid Staking Token (LST), offering tradeability and usability in DeFi while mitigating risks associated with basket-based LRTs.

Astrid Liquid Restaking

EigenLayer, the underlying protocol, introduces restaking on Ethereum. Users, holding ETH or Liquid Staking Tokens (LSTs), engage with EigenLayer to restake their assets, participating in the validation of Actively Validated Services (AVSs) to enhance network security and earn rewards.

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FAQ -
Also want to remind everyone that this is the START of a great idea and not the end or final product. This idea is something that CORE could do way better than its competitors given the whole core ecosystem :slight_smile:

  • Why is this different from BLAST?
    Blast is an L2 that uses a LST as a gas currency. EigenLayer uses an app layer on Ethereum to lock LSTs and point Automated Validator Services to it. You could have both as a hybrid since the two are not exclusive.

  • What are the systemic risks involved?
    Smart Contract risk is the biggest concern. However if you make a total lock down of the tokens and make it impossible to unlock you reduce much of the risk. Other risks involve staking nodes misbehaving and slashing.

  • Why not just use LIDO and Eigenlayer? What are the benefits of CORE making such a system?
    As ive said in previous topics / discussions you can unlock stETH from Eigenlayer and you can withdraw stETH from LIDO for native ETH. You could potentially withdraw all the ETH from the LIDOs staking nodes, unlikely but potentially you can. The benefit of CORE making it is that coreETH represents ETH completely LOCKED and since people want to redeem ETH regardless then you have the deltaETH which is like stETH and you can withdraw in a vested schedule. Staking Nodes with LOCKED ETH have the potential to be more secure and robust that staking nodes in which you could withdraw ETH at any time.

  • Can incentives from other products be integrated into CORE-LAYER?
    Yes, incentives from staking, options, DEX, LP futures, and more can be seamlessly aggregated into CORE-LAYER, creating a holistic and rewarding experience for participants.

  • What is the role of CoreETH and DeltaETH in the ecosystem?
    CoreETH represents locked ETH managed by Core, while DeltaETH represents vested ETH managed by Delta. These Liquidity Staking Tokens (LSTs) add a layer of flexibility and value creation within the Core Delta ecosystem, catering to different user preferences and needs.

  • How does the redemption mechanism work, and why is it secure in CORE-LAYER?
    The redemption mechanism involves burning Core for ETH and DELTA for native ETH. This process ensures a secure and seamless flow within the Core Delta Ecosystem Layer, enhancing user flexibility, security, and overall value creation.

  • How does CORE-LAYER contribute to the broader Core Delta ecosystem’s growth and competitiveness?
    CORE-LAYER, as a pioneering restaking protocol, aligns with the comprehensive capabilities of the Core Delta ecosystem. The integration of advanced economic incentives, liquid derivatives, and seamless incentive aggregation positions CORE as a leader in reshaping the dynamics of asset utilization, security, and yield optimization within the DeFi landscape.