At Chorus One, we have a strong conviction in the potential of a multichain future. We believe that specialized blockchains play a crucial role in discovering and nurturing new use cases, and ultimately driving mainstream adoption. Since joining Chorus One about two years ago, I've been pushing for us to do the same in the Avalanche ecosystem as these two ecosystems have similar visions of what the multichain future can, should, and will look like.
Last year, we entered the Avalanche ecosystem. Our work will only intensify in the coming years with Chorus Ventures, our ventures arm, investing in native Avalanche projects. We also use our expertise in tokenomics and infrastructure to help projects launch their permissionless subnets. We will be presenting this topic both at the online Subnet Summit mid April and the Avalanche Summit II beginning of May.
In my view gaming is key to onboarding the next wave of users and a fundamental step in the road to mass adoption. This article aims to present the exciting future of blockchain gaming and demonstrate how the Avalanche architecture, particularly the multichain subnet architecture, is the ideal substrate for this vision. Through a two-part series, I will illustrate how one can develop an unstoppable game. By unstoppable, I mean a game that not even its creators can censor or stop if one day they move on to other projects. A game in control of its users.
So let's get to it.
To make this exercise as clear as possible I will look at a game I have plenty of experience with having played around 2000h. The game in question is Path of Exile, in my personal opinion the Diablo killer. This game needs no introductions but:
A short video:
Take a look here for some more gameplay videos.
I cannot emphasize enough how deep the economics goes in this game. The reason being that its economics are fundamentally tied to the crafting system for equipment and to the simple fact that you need to craft gear yourself or buy it from someone if you want to reach the endgame. Purely random drops cannot take you there.
Every season a "league patch" is released with new contents and the economy is reset. Characters and loot from previous seasons are still available to play in the "standard" league and the standard league economics are interesting in their own right but as a driver for innovation and to give new players the ability to compete in a more level playing field, these resets are very important.
The goal is thus to envision a version of PoE that is unstoppable and in the hands of gamers. You might ask: why would developers make such a game? To which I answer: the first one to do this becomes a first mover in a technology that soon will be expected from all games. And why will this be expected? Why do gamers want this? Well, this is a game you can continue playing and you can really own it. Like how it was in the dawn of console gaming. Be it real or game money, you can trade assets and no one can censor you. If you recall the anecdote, this was the reason Vitalik started his work in crypto.
In the centralized world, an ARPG like Path of Exile consists of a client/server platform where the server infrastructure is run by the game developer, and where the client freely available or purchased in a marketplace. Next, we will look at the features and responsibilities of the server side as this will be where our decentralization efforts will mostly focus.
The ability of client-side tampering with binary can cause all types of attacks/cheating. This is an arms race but currently, it is tackled via lock-step state validation. More on this later.
Most games need randomness. For anti-cheat reasons, this is taken care of at the server level. In the case of PoE (and ARPG more broadly) this is even more important as loot, damage, map layout, and even AI are parameterized by random inputs.
Of fundamental importance for a healthy in-game economy is that the more powerful items are, the rarer they should be. That is, their drop rate should be lower. This is accomplished by drop-rate lookup tables that are set and maintained by the server. Again due to anti-cheat measures, it is the server that, when appropriate, generates a random drop.
Even in PoE which tends to be dominated by PvE (player versus environment), there are situations where players interact: regions where PvP (player versus player) are allowed and sanctuary environments also called player hubs. These interactions need to be facilitated by the game server.
Special trading windows and functionalities are implemented so that players can exchange goods in a safe way.
Looking at the above set of functionalities that the server must provide, we can identify three different types of backends that the server infrastructure needs to maintain. These are the components we will need to "permissionlessly" decentralize. The following figure gives an idea of how the server-side interacts with these backends and the client (overlap indicates communication).
There is a need for queryable databases, with loot tables clearly being one such need. But many more are present: leaderboards, player info, skill table, effect mechanics, and many more.
A key-value store that can deliver monolithic "chunks of bytes" is also a necessary backend. The game needs to ship itself and its updates with a big proportion being graphical assets. For this dedicated content-delivery networks are employed.
As mentioned before the server infrastructure needs to be able to keep clients in sync across PvE and PvP both for anti-cheat purposes and for facilitation of user interactions.
So why is Avalanche especially suited for this exercise? How will the architecture of such a game change and what technologies do we need to leverage to accomplish our goal of a decentralized, unstoppable ARPG game?
Avalanche has two genius breakthroughs in its design: its consensus being the first and the subnet architecture being the second. The latter is highly dependent on the former. Let's see why.
Avalanche consensus is without a doubt the most advanced consensus out there and is correctly categorized as a third type of byzantine fault tolerant consensus following the discovery of signature accrual and Nakamoto consensus. It is the first meta-stable type of consensus algorithm. This consensus enjoys enviable properties: it scales easily with the number of validators, it is leaderless, and single-slot final. I won't go into much detail but suffices to say it accomplishes all of these by being a consensus algorithm based on a statement about an emergent property of the system. Let me explain what I mean. You can think of the network as having the property of being consistent (all validators agree on the current state). In Avalanche this property is emergent. Like the temperature of a gas, it exists as a property derived by the local interactions of its constituents “particles”. In the case of the gas, particles bouncing of each other exchanging kinetic energy in their small neighborhood gives rise to the macroscopic property of temperature. In Avalanche, validators are the particles and contrary to other consensus mechanisms they interact only “locally”, that is, with a small number of validators that are randomly selected in each round. Somehow - and here there is a strong mathematical theorem behind it - this is enough for the network to have a well-defined sense of state history. Even in the presence of attackers.
It is the property of essentially limitless scaling in the number of validators that allows for the second genius move. You see, Cosmos is the originator of the concept of an app-chain. In this design, it is absolutely necessary that chains can "talk" to each other to really cover all the use cases one is interested in. For this reason, they developed the IBC framework. This is an elegant framework for trustless communication but it incurs a significant requirement to a prospective chain: as a destination chain you need to keep consensus information of any given source chain you want to communicate with in the form of a light client. Wouldn't it be ideal if this information would be globally available to all chains from all chains? This is impossible with a limited set of validators.
So to have an unlimited set of app chains that can trustlessly communicate without having to keep light clients of every other chain they communicate with you need an unbounded set of validators in a global chain that keeps all this information. I hope you see where this is going: this is exactly the subnet design.
In Avalanche the main network that every validator must secure contains three chains. The P-chain (Platform chain), the X-chain (eXchange-chain) and the C-chain (Contract chain). The X-chain - which us currently a DAG but will become a linear chain in the near future - is a chain made for throughput exchanges of assets much like a blazing fast Bitcoin network. The C-chain is what most users are more familiar with and is an EVM based chain. It works just like Ethereum but faster and with instant finality. Great. But the real genius comes from the P-chain. This chain tracks all validation related transactions of the mainnet and all subnets. This is what will enable the unbounded, composable network of app chains. Since all validators have the P-chain at hand, any two subnets can communicate directly provided they want to. In IBC, on the other hand, with its hub-and-spoke design you have the unaddressed issue of path dependence.[^1]
So, we will leverage an Avalanche subnet for our game. Main reasons are the excellent scaling properties of its consensus and the application-specific, isolated nature of the subnet approach. On top of that it supports cross-subnet transactions allowing for valuable assets to move around freely in the ecosystem. Finally but not least, there is also VM2VM message passing that allows the validators in a subnet to easily check the state in other connected VMs be that within the same subnet, in the mainnet, or another subnet running in the same validator (the latter has not even been explored yet).
An Avalanche subnet is essentially the following:
The set of validators is dynamic but can be either permissionless or permissioned. The specification of a blockchain is comprised of a specification of a subnet this blockchain pertains to and the specification of a VM (i.e. virtual machine) that characterizes the valid state transitions in that blockchain.
Ava Labs recently announced HyperSDK a toolkit not much unlinke the CosmosSDK to help developers easily build VMs to power their subnet. From now on, they can focus on the logic of the application and worry much less about synchronization, consensus, state storage and availability and other blockchain-heavy topics. On the other hand, if you want to, you can customize these aspects as the SDK was build with modularity in mind.
See Avalanche platform and Subnets sections in the Avalanche documentation for more information on subnets and visit the HyperSDK repository which is open for contributions.
As mentioned before, our intent is to decentralize the game. For this, we will need to decentralize the server infrastructure, mainly the three points named above: databases, content delivery, and anti-cheat logic. This will be done by defining specialized VMs and the corresponding blockchains for each of those game infrastructures. All of this is packaged in the game server binaries which will be run by the validators in the subnet.
A game client will essentially be submitting transactions to the server network. Clearly, the game client is responsible for client-side rendering which is something we do not need to bother with on the server side. In terms of execution hardware, the game server is much lighter than the client and we will exploit this.
Keep in mind that being a player does not mean you can’t be a validator as well or a delegator to a Chorus One validator ;). This is obvious but worth mentioning as this means that for the first time ever a game can actually be in the hands of the players. With governance, even the game features and roadmap can be decided, paid for, and rolled out completely in a decentralized fashion.
So the big question: what are the blockchains, VMs and technologies used for this purpose? We dive in.
The BlobVM already exists in an advanced prototype stage. It was developed by Ava Labs and is available in open-source. What it does is provide a dedicated, seamlessly integrated (at the subnet level) content addressable storage with customizable parameters regarding permissions for read/write and persistence.
We use BlobVM for storing all art, texture, and models, i.e., all game assets. Even the game client binary can be updated via this method. In a fresh install, an externally downloaded game client connects, and sends a transaction to download all necessary assets. Note that this transaction could be a way to monetize the game but this is optional of course. In other words, this transaction would give you a game license NFT.
Now as mentioned before we want to give power and value to the gamers. Path of Exile is famous for its rich economy and is a formidable laboratory for NFT tokenomics. By giving the gamers the option to mint any found loot item we give this economy real value. There is plenty of opportunity and pitfalls here to fill in another article but it is important to mention that PoE works by having multiple “leagues” which give an opportunity to always “reset” the economy and give chance for new players to “make it”. We think this is an important aspect to keep in the decentralized version of this game. As an example of how we could explore this, we can configure it so that minted NFT only work on the current and previous leagues.
For tracking a gamer’s collection we use AVM, the Avalanche VM, which is a DAG (directed acyclic graph) based on the UTXO model capable of massive throughput. In fact, this is the underlying VM of the mainet’s X-chain. Note that since the announcement of Cortina (the next dot release of the Avalanche validator client) the X-chain will move from being a DAG into a linear chain. Here we have the option of launching out own AVM chain for assets transfer or, use the X-chain directly which would make all of the game’s NFT directly available to the wider Avalanche community (NFT reuse in games is an under-explored area). The AVM supports ANTs or Avalanche Native Tokens that can easily be imported/exported across the majority of supported VMs as it defines a unified API for cross-chain atomic swaps.
PoE is a free-to-play game that monetizes itself via cosmetic-only user-purchasable content. This can be easily supported via the AVM chain as well. Simply: an NFT in the user wallet ”unlocks” these assets to be delivered via the content delivery mechanism. This is essentially a VM2VM communication as is desirable and quite probable that the X-chain will support account lookups via this mechanism.
As mentioned before, as with any modern application, the game needs to store global relational data. For example, loot tables, league-specific information, game metrics, user metrics, NFT market data, etc. The list goes on and on. For this specific use case currently, many web3 projects use The Graph: a sophisticated but complex decentralized solution. A few issues arise with this approach:
Because of these, we propose a new type of VM we dub SQLVM and this will be the topic of our next article. But in a nutshell, you should think of it as a hybrid between a app-specific indexer and a persistent relational data store.
It allows for specific types of transactions that query/write to a globally replicated ACID relational database. Here we automatically benefit from the fact that blockchain transactions are atomic at the consensus level which makes designing the underlying database much simpler. For example, a suitable design can be done for a VM where the runtime state is an instance of any query engine: row-oriented like Postgres, column-oriented like BigTable, or document-based like MongoDB. Keep in mind that even this is overkill as we don't need their replication features. What we need is their query engine and storage solution. Most of these databases have sophisticated query planners than can take the place of fee estimators. The beauty here is that Avalanche will take care of maintaining this database eventually consistent which suffices for our use case. More sophisticated designs are certainly possible. The job of the VM here is to essentially declare the types of transactions (write/reads), the fees and verify the blocks by applying the transactions in the database and updating certain database hashes (will be needed for anti-cheat below). For our game - or any other app chain using this backend - other VMs in the subnet should be able to read the database at will which can easily be done with VM2VM.
Similar to how a non-validating Avalanche node have access to the mainnet state, a game client could be a node of this chain running in non-validation mode so as to keep this database state at all times for easy synchronicity.
Now to the technologically most innovative piece of the puzzle: to run anti-cheat as a ZK verifier. This is such a breakthrough technology that it would be an improvement over existing anti-cheat technology on centralized games.
Anti-cheat works, as mentioned before, as lock-step game simulation. What this means is that the game client is essentially an input system and a rendering engine of a game that is actually run remotely on servers. This Introduces latency which is the reason why game server farms have to be deployed across internet “regions”. ZK changes the game as it allows one to codify all game state transitions in a prover which we can run on the game client (remember the gamers tend to play with machines that are quite powerful) while the server is just a verifier! This has the added benefit that it even liberates the server from having to run in lock-step, to begin with! Essentially we can use eventual consistencyto catch the cheaters. Put differently, we don’t care to verify every little state transition that happened but batches (or recursions) encoding all transitions that happened in a configurable time window: 1 second, 10 seconds, a minute, an hour…
It is obvious what a powerful idea this is: no need to simulate full-blown games on the server. For example, we now can use more sophisticated AIs in the client. The fact that you have to run the game on the server is one of the reasons no modern AI is in use in games. Why not use GPT-4 for creating procedural quests??
We will have more to say about a ZKVM in a future article but I would like to state a few things. Firstly, note that we are not even using the zero-knowledge aspect of this VM and this gives more freedom in the exact construction of the protocol. In precise terms we are interested in SNARKS not necessarily ZK-SNARKS. Nonetheless, we expect that applications that use this zero-knowledge aspect will also exist.
Secondly, we might not be at the stage yet where fast enough provers exist to prove the state transition for a game like PoE. I'm not an expert, but I expect that schemes leveraging the GPUs in the gamer's clients will be just a matter of time.
And finally, we are talking about a very specific VM - that of the game - and not a generic programmable one like the EVM. We need a prover for those exact transitions that happen in game. This is potentially another route for optimization.
We hope to have convinced you that the future of decentralized gaming and player-owned gaming is bright. When Vitalik joined the crypto movement I don't think he thought his dream would come true on another chain, but I think he will be satisfied nonetheless.
But more importantly, we hope the reader is also convinced that this is only possible in a clean, elegant, and reusable way via the subnet architecture. Sophisticated applications like this will only flourish when good reusable VMs are available much like reusable contracts are right now. Multiple VMs demands multiple chains in a subnet architecture. Although technically possible to cram all of these backends into a single block to be serialized/deserialized and verified using a single chain, this would not only hurt code reuse but is also impractical since it is clear that these backends might need different blocktimes.
Of course, there are a lot of unknowns to this as I am not a game developer. I just want this to jump-start the imagination of developers in general (not only game developers) to the reality that the future is app-specific multi-chain subnets. And so that someone develops an unstoppable ARPG like Path of Exile!!
Tune in for some follow-up articles on where we attempt to detail somewhat the SQLVM and ZKVM and come talk to us in the summit. See you there!
Chorus One is one of the biggest institutional staking providers globally, running infrastructure and validating over 40 blockchain networks. Since 2018, we have been at the forefront of the PoS industry and now offer enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge projects through Chorus Ventures. We also invest in subnets on Avalanche so if you’re building something interesting, reach out to us at ventures@chorus.one.
We’re very excited to announce that Chorus One is live on the Onomy Network!
Onomy Protocol is pioneering a harmonious connection between traditional financial markets and the DeFi landscape - two worlds that have remained largely disjointed - by creating a vertically-integrated ecosystem that emulates the familiarity of centralised exchanges but retains the decentralised ethos of Web3, Onomy will be presented to end-users in a digestible, retail-friendly ‘fintech shell’ whose backroom engine smoothens the transition from CeFi to DeFi for retail and institutions alike.
Leveraging a Cosmos-based layer-1, a hybrid DEX, bridge hub, stablecoin issuance protocol, and additional contributions built on the ecosystem, Onomy is creating the perfect conditions for Forex markets to thrive on-chain.
The Onomy Network is a Proof-of-Stake blockchain constructed using the Cosmos SDK framework, which enables it to achieve scalability by leveraging the infrastructure supported by a network of institutional validators, like Chorus One.
With a block time of just five seconds, and its high throughput, low latency, and low fees features, the Onomy network is made to be ideal for financial transactions.
Onomy Exchange (ONEX)
Supporting various order types, including limit, market, conditional, and stop-loss orders, the Onomy Exchange (ONEX) stands out as a unique hybrid, multi-chain decentralised exchange (DEX) on which traders can buy and sell cross-chain through an order book with no trading fees incurred, whilst liquidity providers can get involved and earn rewards from the AMM running in the back-end.
This empowers users to trade both crypto and Forex pairs effortlessly while also offering cross-chain trading, advanced charting, and more.
“The Hybrid DEX combines the importance and familiarity of order books while retaining the flexibility and security of AMMs.” - Lalo Bazzi, Co-founder, Onomy Protocol
Essentially, ONEX aims to provide a high-volume trading experience similar to that of traditional centralised exchanges (CEX), but in a decentralised and non-custodial manner on the blockchain.
The Network powers the Onomy Arc Bridge Hub, a cross-chain transfer solution that integrates inter-blockchain communication (IBC) and allows users to easily traverse between prominent blockchains both within and beyond the Cosmos ecosystem, such as Near, Avalanche, Polygon, Ethereum, Neon, etc. Additionally, the Arc Bridge solves the issue of approving multiple cross-bridge transactions by reducing it to a single approval, making the user experience significantly simpler.
Onomy Reserve (ORES) is the linchpin of the ecosystem and the fundamental driver behind Onomy’s core long term mission. A decentralised reserve bank, the ORES will provide on-chain minting of stablecoins, or denominations (Denoms) of fiat currencies.
The goal is to create a trusted, decentralised system through which national currencies can be exchanged at speed on-chain and with broader integration with the wider DeFi ecosystem and the advantages composable finance brings and the efficiencies it entails for this titanic, $7 trillion per day market. The ORES will function as a gateway for liquidity across all integrated blockchains and will support multiple national currencies, with the native $NOM coin playing a key role.
$NOM is Onomy’s native network and governance token. It’s used by validators (like Chorus One) and their delegators to secure the proof-of-stake blockchain, but also to cover transaction fees, and vote on governance proposals in the Onomy DAO which manages the on-chain treasury with no centralised control. $NOM will have a key role to play in the Onomy Reserve as highlighted in the Onomy Improvement Proposals, with additional utility to be voted on by the DAO.
For crypto’s next great wave of adoption to occur, access to crypto needs to be easier, faster, and more intuitive - while also continuing to lay the scaffolding for a decentralised financial system that works entirely on-chain. Onomy is that convergence point.
Powered by a strong team of crypto natives and backed by prominent crypto investors among the likes of Chorus One, Bitfinex, UDHC, GSR, DWF Labs, CMS Holdings LLC, and more. Onomy offers new possibilities for on-chain FX markets and broadens access to DeFi for the individual and institutional investor.
$NOM is already live for trading on Kucoin, Bitfinex, Gate.io and MEXC.
Onomy will unlock DeFi for the masses, and Chorus One is thrilled to be part of the journey.
Current Inflation Rate: approximately 90%
Current Staking APR: approximately 114%
Staking $NOM with Chorus is straightforward. Simply hold native $NOM on Cosmostation, Keplr or Leap, connect your wallet to the Onomy SuperApp, and stake $NOM with Chorus One.
For any other questions, reach out to staking@chorus.one.
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 40+ 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. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
Akash is a decentralized marketplace, where cloud providers (providers) can lease their computing power to users (tenants). The Akash marketplace functions by conducting reverse auctions whereby the tenant creates orders for computing power, and providers bid on these orders. When the tenant chooses a provider, they create a lease. After this, the user deploys a Docker container on the Akash Container Platform where users are able to then run any cloud-native application and access a range of cloud management services like Kubernetes.
Please note that the unstake period is 21 days. This means that you can only unstake and withdraw coins to your wallet after this time has passed. We wish you profitable staking!
In case you don't have the keplr extension installed in your browser visit https://www.keplr.app/ and click on Install extension.
Click on Install Keplr for Chrome if you are using a Chrome browser or Brave if you are using the Brave browser and follow the installation instructions.
Click on the extension in the Chrome/Brave toolbar and the following page will open up.
In case you do not have an existing Keplr account you can create a new account
You will be shown 12 words as your mnemonic seed. Select24 words option for a more secure mnemonic. Back it up securely (read the warning below)
Back up your mnemonic seed securely.
Enter an account name and a passphrase to unlock your wallet. You will be asked for the mnemonic again. Enter the 24 words in order. This is to make sure you remember the mnemonic.
Finally, click on Next to create your account
Regardless of whether you already have an account or if you created it just now you may now click on the extension to view your address or visit https://wallet.keplr.app/#/akashnet/stake to see the full dashboard.
If you don't already have AKT in your account fund it with some tokens. You may use an exchange to transfer the AKT tokens to your address or get it from someone who already holds those.
To stake click on the Akash network in the left panel and click on Stake
You will be shown a list of validators with whom to stake on the right side. Scroll to Chorus One and click on Manage.
A modal with Chorus One's description will pop up. Click once on Delegate to enter the amount of tokens you want to stake.
Clicking on Delegate again will take you to Keplr wallet for approval. Approve the transaction and you will be able to see your stake.
There is a 21-day unbonding process for staked AKTs during which delegator AKTs do not earn rewards and cannot be transferred, exchanged, or spent. AKTs can, however, be slashed during the unbonding period.
After some time you will see rewards getting accumulated in your account. You can simply go to the Keplr extension to claim them.
MEV has become a much-discussed topic in recent years, progressing from a niche area of research to a full-fledged ecosystem and a lucrative source of validator revenue. In the article below, we’ll explore how we leverage MEV to boost staking rewards in Ethereum, what are its implications for stakers, and even understand what exactly is MEV.
First things first, MEV generally stands for “maximum extractable value” and refers to the total amount of economic value that can be gained as a function of the ordering of transactions in a block.
For example, a user may swap a large amount of token A for token B on a decentralized exchange (DEX), affecting the exchange rate between these two assets.
If this rate is then inconsistent with the pricing in the wider market, traders (“searchers”) can take advantage of the imbalance through arbitrage. Intuitively, a trader would be rewarded for committing capital to re-establish efficient pricing.
It is easy to intuit that there are desirable and less desirable forms of MEV.
For example, arbitrages and loan liquidations serve to increase and preserve the integrity of on-chain capital markets. These types of transactions take place after an opportunity has been created, i.e. these are often referred to as “back-running”.
On the flip side, there is a class of transactions characterized as “front-running”. These strategies involve creating or compounding a profit opportunity by submitting a trade before a user transaction hits the chain.
While there are some counter-arguments, most people agree that front-running increases transaction costs for ordinary users, and it is, therefore, less desirable than back-running, which can in theory decrease user transaction costs (e.g. through efficient pricing).
The upshot is that the feasibility of any MEV-type trade is dependent on the ordering of transactions in the block.
Ideally, a searcher would like to trade directly after the opportunity has been created. There are some exceptions to this (i.e. where the opportunity will compound with other transactions), but in any case, there is always an ideal timing for a trade when there’s money on the table. And there are sophisticated actors waiting to exploit these opportunities.
Validators ultimately control the ordering of transactions in a block. As there is always an ideal timing to trade (or the best estimate thereof), searchers are incentivized to bargain with validators to ensure their transactions are placed well.
On Ethereum, this process has been automated via an auction system, spearheaded by the Flashbots team. In this post-Merge, Proof-of-Stake Ethereum world, the main tool to perform these auctions is called “mev-boost”. This is a private communication channel between searchers and validators, which allows the efficient pricing of a block. As a result of this, validators receive “tips” for proposing the most price-efficient block, on a secure commit-reveal scheme.
We have created some tools to decode MEV and ‘mev-boost’ transactions under Proof-of-Stake Ethereum, check our Dune Analytics dashboard.
The higher the network penetration score of an individual validator or group of validators (known or unknown), the more chances it will get to propose blocks, and consequently benefit from a block price auction, which is often a matter of luck. Validators under these conditions are also more likely to be present when particularly lucrative opportunities occur, and so luck turns into opportunity.
This means that a large validator set working together is more likely to generate smooth staking returns, versus a small validator with more irregular windfalls.
For stakers, this process results in additional rewards that are immediately accessible on the Execution Layer of the network — responsible validators share a portion of MEV rewards with stakers.
Volatile markets generate more MEV opportunities through collective price discovery, and various inefficiencies which reveal themselves in unusual conditions. For example, more liquidations if the ETH price drops significantly below what market participants expect.
Therefore, you can expect your staking rewards to go up in conditions of uncertainty.
Profits from on-chain trading can be enormous. For example, the all-time largest MEV arbitrage on Ethereum in June 2022 yielded a gross profit of 2518.5 ETH; of this sum, 74.52 ETH went to the block proposer.
A well-thought-out MEV strategy can boost your staking returns significantly. For example, in March 2023, up to 15% of validator revenues have been derived from MEV so far. At Chorus One, we have experimented with different mev-boost setups and relayers, always working on tweaking our strategy to reach higher levels of efficiency. Moreover, we only charge a small staking commission on all returns, allowing you to keep the vast majority of MEV rewards your validator generates. We wrote about how we view MEV and our policies here: Chorus One’s MEV Policy: Transparency, Sustainability, Reward Optimization.
Optimization of MEV rewards coupled with our performant infrastructure and round-the-clock supervision allows us to deliver highly competitive returns to our delegators, sometimes exceeding other validators by up to 30%. Don’t take our word for it, real-time statistics can be accessed via Rated.
Chorus One is a leading advocate for MEV transparency and efficiency. Our team has been at the forefront of MEV research, actively developing solutions to support the nascent yet rapidly evolving MEV landscape. We have executed MEV-type transactions on both Solana and Cosmos, and our recent release of an open-source MEV-client on Solana demonstrates our commitment to advancing the space. Additionally, our expertise in the MEV domain has been recognized with a grant from dYdX to produce a comprehensive report on MEV for their v4 platform.
Reach out to us at sales@chorus.one to understand more about how our MEV-enabled infrastructure can help you earn superior returns.
About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 35+ 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. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
For more information, please visit chorus.one
