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Network 101: A concise guide to Chainflip, and how it simplifies cross-chain swaps
Your guide to Chainflip, the decentralized exchange built to simplify cross-chain swaps
November 23, 2023
5 min read
  • Chainflip is a cross-chain decentralized exchange that leverages Just-In-Time (JIT) liquidity to provide better capital efficiency for LPs and less slippage for traders.
  • Contrary to traditional AMMs like Uniswap, where liquidity is maintained through smart contract-stored pools, Chainflip operates with up to 150 validators constructing multisig 'vaults' on all supported blockchains simultaneously which are secured using Chainflip’s native token, FLIP.
  • The user simply needs to select the coins they want to buy/sell and submit the transaction. No wrapped tokens, synthetic assets, KYC, or any complex set up is needed.
  • Although users can't delegate FLIP to public nodes, our institutional customers can engage through Chorus One's whitelabel solution for Chainflip.

In March 2020, Vitalik Buterin expressed frustration over the lack of a trustless solution for swapping between BTC and ETH. Fast forward to November 2023, and Chainflip has finally arrived, transforming swaps with a straightforward and seamless process for exchanging digital assets. Chorus One is proud to support the network as one of the genesis validators!

What is Chainflip?

Chainflip is a cross-chain decentralized exchange based on a proof-of-stake validator network that offers users the simplest way to swap assets across different chains. Fully permissionless, it simplifies trading for users who can select the coins they want to trade and submit the transaction. No wrapped tokens, synthetic assets, KYC, P2P counterparties, or any other time-consuming complexities are requisite. Chainflip is designed to minimize slippage and offer great pricing for high-liquidity trading pairs.

How does Chainflip work?

Contrary to traditional AMMs like Uniswap, where liquidity is maintained through smart contract-stored pools, Chainflip operates with up to 150 validators constructing multisig 'vaults' on all supported blockchains simultaneously, collateralised by Chainflip's token, FLIP. The assets used for trading are held in these Vaults on chains such as Ethereum, Bitcoin, and so on, creating a decentralized ‘settlement layer’. This is paired with the ‘accounting layer’, the Chainflip State Chain, which is a substrate-based application specific Blockchain. Instead of traditional on-chain pools, Chainflip virtually trades assets on the ‘State Chain’, balancing accounts and settling with the real assets stored securely in Vaults. The State Chain oversees all activities in the Chainflip protocol, including but not limited to recording, executing, or triggering protocol events. Think of it like a unified wallet system in centralized exchanges, simplifying the tracking of user balances.

Trading and tracking assets virtually on the State Chain simplifies the work needed to support individual chains, as rather than needing to write swapping logic in a range of smart contract and scripting languages on external blockchains, it is entirely contained within the Chainflip State Chain environment.

Validators achieve consensus on every transaction within the Chainflip State Chain. FLIP is automatically purchased and burned with each swap, funding emissions for validators and offering liquidity incentives.

Additionally, all of the swapping and trading logic happens on the State Chain, meaning it’s fast, cheap, and dedicated for this purpose. The user experience is incredibly simple, requiring only a destination address for a swap, without any setup: The user selects the coins they want to buy/sell and submit the transaction. No wrapped tokens, synthetic assets, KYC, P2P counterparties, or anything else complex and time consuming is needed.

The above animation by Chainflip demonstrates the path of a typical swap, where a hypothetical user swaps USDC (ERC20) for BTC (native), and Market Makers A & B compete to win the liquidity fee from the trade. Source: https://docs.chainflip.io

  1. User deposits 10,000 USDC on Ethereum.
  2. Market Makers notice this and prepare for the trade, adjusting their prices.
  3. The swap happens on Chainflip after some Ethereum blocks, around 90 seconds.
  4. Using strategies like risk model calculations to determine their best possible price for the trade, Market Makers aim to profit by selling and rebuying BTC during the process.
  5. The Chainflip network sends the swapped BTC to the user’s BTC wallet.
  6. Market Makers adjust their portfolios for future opportunities.

For a more detailed explanation of each step, visit https://docs.chainflip.io/concepts/swaps-amm/just-in-time-amm-protocol

Staking Mechanisms

Chainflip, a Proof of Stake network without support for native delegation, allows up to 150 validators in the protocol's authority set. Validators secure the network using collateralized FLIP as part of the active set. All Validators with sufficient $FLIP to outbid others in Auctions become part of the active set and similar to Ethereum, each authority member earns equal rewards per epoch. A fixed reward (much less than the Authority Set reward) is split between Backup Validators each Epoch. To be a Backup Validator, Validators must be Qualified and have one of the top 50 bids of non-Authorities.

Chorus One’s Contributions to Chainflip

We've collaborated closely with Chainflip since its inception, actively participating in the testnet.

How Can Institutions and Investors Get Involved?

While users can't delegate FLIP to public nodes, our institutional customers can get involved through Chorus One's whitelabel solution for Chainflip. We set up and maintain validator nodes on your behalf, allowing you to brand the node while we handle all the technicalities. To learn more about our whitelabel solution for FLIP, please reach out to us at staking@chorus.one.

Resources

An introduction to Chainflip

Conversation with Simon Harman, founder of Chainflip on Epicenter Podcast -

Chainflip Docs

Website

Twitter

About Chorus One

Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 45+ 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.

Networks
Opinion
Network 101: A comprehensive guide to dYdX v4
dYdX v4 has arrived - Here's Your Complete Guide to the Chain
October 25, 2023
5 min read

After rigorous testing and numerous iterations, dYdX is soon making its transformational shift to the Cosmos ecosystem, unveiling its fourth and latest version as a standalone blockchain known as dYdX Chain, built using the Cosmos SDK. We’re proud to be joining the network as a genesis validator, enabling staking for dYdX's token, DYDX.

Since its inception, dYdX has been instrumental in facilitating over $1 billion in daily trading volume, achieving a remarkable milestone by surpassing $1 trillion in total trading volume through smart contracts on the Ethereum blockchain. Looking ahead, the exchange will implement a unique off-chain, in-memory order book trading system that will be overseen by a network of validators.

This article delves deeper into what this entails for stakers and offers insights into the workings of dYdX v4.

Part 1: The dYdX Chain
The evolution of dYdX

dYdX stands out as the leading decentralized exchange (DEX), specializing in the trading of derivative products known as "perpetuals." Perpetuals allow users to take leveraged long or short positions on crypto assets. In contrast to Uniswap and other DEXs, dYdX distinguishes itself by not relying on an automated market maker (AMM) to facilitate trading. Instead, it employs a traditional orderbook and matching model to cater to the needs and expectations of sophisticated traders and institutions. We've explored the key distinctions between AMMs and order book trading here.

In its initial launch in 2017, dYdX was introduced as an Ethereum Layer 1 application. However, the chain's limited scalability became evident, with users facing exorbitant gas fees for even simple trades.

To enhance scalability, dYdX transitioned to an Ethereum-based Layer 2 solution employing StarkX/StarkNet technology. This shift significantly reduced gas fees, vastly improving the user experience. Yet, it led to a higher degree of centralization within dYdX.

To address this centralization concern and advance decentralization, dYdX made the strategic choice to transition to its blockchain, built using the Cosmos SDK. This imminent transition, on the verge of completion and soon to go live, represents the DEX’s fourth and latest version, known as the dYdX Chain and will feature a decentralized, off-chain order book capable of seamlessly scaling with the platform’s growth.

As part of the Cosmos ecosystem, dYdX stands to gain the full advantage of decentralization, along with an array of unique features such as extensive customizability and scalability. We’ve delved into the specific reasons behind dYdX’s choice of Cosmos in the following section.

Why did dYdX choose Cosmos?

dYdX's decision to migrate from Ethereum to Cosmos stems from a strategic choice to utilize the unique capabilities of Cosmos technology, which offers a distinct advantage in building new layer-1 blockchains. Cosmos' Tendermint proof-of-stake consensus engine provides the foundation to develop a standalone, application specific blockchain with cross-chain capabilities, and makes it possible to fully customize how the chain functions.

Unlike Ethereum, where network congestion can be a concern, Cosmos’ app-specific chains function independently, and each Cosmos chain operates with its network of validators and token. This move permits blockchains to have faster transaction processing while maintaining decentralization, thus positioning Cosmos as the ideal choice for dYdX’s requirements, which demand high throughput - roughly, 10 operations per second and 1,000 orders/cancellations per second. Currently, Cosmos can process up to 10,000 transactions per second, or TPS, compared to Ethereum's 15-25 TPS.

A recent twitter thread by dYdX succinctly described the key separators between Layer 2s/Roll ups and standalone app-chains, and reiterated their decision to choose the latter. Read it here.

How will dYdX work on Cosmos?

While on-chain orderbook DEXs offers a high level of transparency and decentralization, it comes at the cost of potentially higher transaction fees and slower transaction speeds. With each transaction requiring on-chain validation, the underlying network’s throughput can become a bottleneck, thus affecting the overall network efficiency.

In contrast, on dYdX v4, each validator will maintain an off-chain in-memory order book. When a new order is placed, it is initially routed to a validator that is randomly chosen. Subsequently, this validator disseminates the transaction to other validators to ensure the order book remains up to date. This alleviates the pressure on the network, allowing the chain to achieve significantly higher throughput for the order book while retaining decentralization.

The transaction flow roughly looks this -

Source: dYdX

Key Features of dYdX v4:
  1. Off-Chain, Decentralized Order Book Trading: As mentioned previously, dYdX v4 introduces an off-chain in-memory order book, mitigating potential throughput bottlenecks common in on-chain order book DEXs. This design significantly enhances order book throughput while preserving decentralization.
  2. Unparalleled Transaction Speed: dYdX v4 leverages Cosmos’ 10,000 TPS capacity to process a significantly larger volume of transactions.
  3. No Gas Fees: The chain's customizability means traders will no longer incur gas fees for trading; instead, they will pay fees based on executed trades, similar to dYdX v3 or other centralized exchanges. These fees are accrued to validators and their stakers.
  4. The Token DYDX: dYdX v4 will be powered by its token, DYDX. This token serves multiple purposes, including staking and governance of the chain.
  5. Open-Source: All dYdX v4 code is open source, running on permissionless networks, and no services will be operated by dYdX Trading Inc., which empowers the dYdX community to maintain a vertically integrated approach, with protocol token holders exercising full control over the system.
  6. Highly Secure: In order to ensure the highest level of security for the dYdX Chain, it has undergone extensive testing and code auditing by Informal Systems to guarantee that user funds always remain safe.

dYdX Tokenomics
Source: dYdX

Total supply: 1,000,000,000 DYDX tokens

50% of tokens go to the dYdX community which will comprise liquidity providers, traders, stakeholders, and users who complete trading milestones. A portion of this share goes to the community treasury.

27.73% of the tokens go to investors.

15.27% of tokens are allocated to the official team members of dYdX including founders, advisors, employees, and others.

7% of the tokens are reserved for consultants and employees who will join the platform in the future.

Chorus One’s extensive involvement with dYdX

We’ve had extensive involvement with dydX v4 since inception as well as the Cosmos ecosystem in general. We received a grant from dYdX to write an in-depth research report (available here) that examines the implications of Maximum Extractable Value (MEV) within the context of dYdX v4 from a validator's perspective. Additionally, we were on all three testnets and actively contributed through debugging and sharing validator best practices.

dYdX occupies a unique position as a decentralized solution that directly competes with centralized exchanges in terms of its order book model, trading volume, and user experience aligns with our vision for the future of decentralized finance. Furthermore, we share dYdX's philosophy of prioritizing the creation of the best possible product, making our support for their forward-looking vision a natural choice.

Part 2: Why should you stake DYDX with Chorus One

  1. No one understands the Cosmos ecosystem like we do

Chorus One has been more than just a player in the Cosmos space. With our $30M venture arm, Chorus Ventures, we have actively invested in promising projects such as Celestia, Osmosis, Agoric and more, which keeps us well-connected to the ecosystem. We're also deeply engaged with the community, publish research reports, and extensively cover Cosmos in our blog.

  1. No one understands MEV like we do

Chorus One is the only node operator with a dedicated in-house quant team focussing on MEV. MEV refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block.

Because of our MEV expertise, we were provided a grant by dYdX to work on a research paper that goes into the territories of cross-chain arbitrage and also explores the subject of negating MEV externalities in a fully decentralized, validator-driven order book.

The report entails comprehensive insights on MEV’s impact on the new chain and trading, cross-chain MEV opportunities, user welfare, and centralization risks, ultimately providing practical solutions for mitigating validator-driven MEV risks. Read the report here.

  1. The most active Node Operator when it comes to Governance

Chorus One is the most active node operator on Cosmos where on-chain governance is enabled.

We have published a detailed research report last year on Cosmos’ governance, which elaborates on Cosmos’ validator participation, voting trends, controversial proposals, and why Chorus One is one of the most active node operators in the Cosmos ecosystem.

In the report, we conducted a governance performance comparison against the top 5 validators by stake on 13 chains from April 2022 to November 2022, which includes Akash, Axelar, Cosmos Hub, Evmos, injective, Juno, Kava, Osmosis, Persistence, Regen, Secret, Sommelier, Stargaze.

As illustrated in the chart below, our voting activity exceeded that of the average top 5 validators by 30%. However, it's crucial to note that the top 5 validators can vary significantly on each chain.

Out of the 13 networks studied, we achieved a 100% voting record in two networks, and in one network, Kava, we surpassed the average by approximately 90%, as demonstrated in the graph below.  We consistently exceeded the average participation rates of the Top 5 validators on 11 out of 13 networks

Staking DYDX with Chorus One: Key Information

*Since DYDX inflation goes to traders, dYdX stakers, in contrast, will receive 100% of the trading fees that are paid out in USDC.

To learn more about staking DYDX with Chorus One, don’t hesitate to reach out to us at staking@chorus.one. For any support queries, visit here.


About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 45+ 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.

Networks
Opinion
Core Research
A Deep-Dive into Saga
We take an in-depth look at Saga, a protocol that lets you create your own dedicated blockspace in minutes
September 5, 2023
5 min read
Introduction

Web3 founders face a crucial decision when deciding to launch their product. If they want to avoid the layer 2 option due to concerns surrounding centralized sequencers and multisig bridges, they must choose between two main paths: developing their product as a smart contract and deploying it on an existing Layer 1 blockchain, or taking the ambitious route of creating their own blockchain from scratch. The former option comes with different advantages, notably removing the complexities of infrastructure management, ensuring a decentralized foundation, and leveraging the network effect inherent in the underlying blockchain.

Yet, opting for a smart contract deployment is not without tradeoffs. It leads to a competition for block space, resulting in a worse user experience characterized by inflated gas costs and transaction fees, coupled with an impact on transaction executions. The immutability of smart contracts can also be restrictive, offering little flexibility for the protocol in the case of critical bugs or hacks. The smart contract approach also lacks sovereignty, as the protocol will be subject to the rules of the hosting blockchain.

One solution that has gained popularity in the last two years to address the challenges of the smart contract approach is the appchain thesis, which was pioneered by Cosmos and followed by Polkadot. The idea behind this model is to build a dedicated blockchain for one application. Compared to the smart-contract solution, this model offers sovereignty and full customizability from the blockchain to the application. It also enhances performance and scalability since the application has its own blockspace. This leads to increased opportunities for the token to capture value, such as MEV, as Osmosis does, in addition to capturing other network fees.

Certainly, this solution involves several important factors to consider. It requires the management of the chain's infrastructure, ensuring its own security, attracting validators, and designing a tokenomics model that aligns the interests of validators, stakers, and app users.

What if we could easily launch an application, similar to deploying a smart contract, and gain the benefits of an appchain, all without any initial investment or extensive effort? This is exactly what Saga's value proposition is about.

Saga’s value proposition and architecture

The Saga protocol functions like application-specific blockchains as a service. In other words, Saga is a blockchain used to easily launch other blockchains, called “Chainlets” in the Saga ecosystem. Chainlets are secured by the Saga blockchain and its validators through a mechanism called Interchain Security, a well-known shared-security system in Cosmos.

Interchain security means that one blockchain, in this case Saga, acts as a provider of security for other blockchains, in this case the Chainlets. As a result, the Chainlets inherit the benefits of running a Cosmos SDK appchain but outsource their block validation and validator set to Saga.

Therefore, a Chainlet is a sovereign blockchain that has the same level of security and decentralization as Saga.

Saga introduces an easy, decentralized, and secure approach to deploying application-specific blockchains. This solution also grants developers the autonomy to choose their preferred Virtual Machine (VM), with initial support for the Ethereum Virtual Machine (EVM).

In the long run, Chainlets aims to be VM agnostic, which means that developers would have the flexibility to choose from a variety of virtual machines, including the EVM, CosmWasm, or the Javascript VM for example.

Different examples of Chainlets

How to launch its own Chainlet?

The way Chainlets are created differs slightly from what we can observe on the Cosmos Hub when launching consumer chains with Replicated Security. In contrast to the Cosmos Hub, the launch of a Chainlet with Saga is entirely permissionless.

Developers only need to have SAGA tokens to pay for setting up and maintaining their Chainlet. This is similar to services offered by Amazon Web Services and other SaaS platforms, except that here the subscription fee is paid in SAGA tokens to create and maintain a Chainlet.

This means that once the fee is paid, the role of Saga validators is to set up and run the infrastructure for a Chainlet, similar to how Cosmos Hub validators also operate the infrastructure of the consumer chains.

To launch a Chainlet, a developer is required to allocate funds to an escrow account using SAGA tokens. This escrow account can be pre-funded to any desired amount and works like a prepaid service to cover the costs associated with the Chainlet. If the deposited fee is depleted, the Chainlet goes offline until the developer deposits more SAGA in the account. The fee is determined per epoch, where one epoch lasts approximately one day.

Diverse methods could be used for funding the escrow account with SAGA tokens:

  1. Directly fund the account with SAGA tokens
  2. Stake SAGA with the escrow account to cover the fee through staking rewards
  3. Allow sponsors, communities and DAOs to pay the fee
  4. Implement an IBC mechanism to seamlessly convert any crypto into SAGA and pay for the fee

This subscription fee is determined by the Saga validator set. Before the start of a new epoch, each Saga validator submits the fee they would like to receive for running a Chainlet. These bids are then locked before the start of the next epoch, and a Musical Chair Auction begins.

The Musical Chair Auction is a process that aims to establish a universal price for running a Chainlet. In this context, each validator presents their bid, and only the w validators with the lowest prices are included in the 'Winning Set'. The remaining validators with higher bids constitute the 'Losing Set'.

The final cost of running a Chainlet is determined by the highest bid within the Winning Set. This implies that the validator with the highest bid in the Winning Set gets its desired price, while other validators within the Winning Set not only secure their desired price but also receive an additional margin on their bid.

The price that developers will have to pay for Saga validators to run a Chainlet is:

Pricerun chainlet = max(BidWinning Set )Number ValidatorsSaga  

To prevent collusion or Sybil attacks related to the Winning and Losing Set, the count of validators within this set must be large enough to make controlling the Winning Set challenging. According to the Saga team, this number should range between 75% and 85% of the participants in the Musical Chair Auction.

However, the Musical Chair Auction is not riskless for a validator. In fact, the mechanism is designed to incentivize validators to submit bids as low as possible, rewarding validators within the Winning Set, while penalizing those in the Losing Set.

A possible way for the team to handle punishment is to treat it like validator downtime: validators who are down for a certain period get a minor slash and are jailed (removed from the active set). Validators who lose the auction too often in a given period could also be minorly slashed and jailed.

Hence, the SAGA token has multiple use cases: it is used as a subscription fee to keep the Chainlet alive and to reward the validators for running the infrastructure. In this case, there is a 1:1 relationship between costs and revenues with the auction system. We can also think about having pools of validators that share the cost, with validators only running some Chainlets and not others, to improve scalability.

Saga and its Chainlets introduce an interesting token structure, as gas fees are not explicitly collected from end users. Within a Chainlet, gas fees can be paid using Saga, the developer’s own Chainlet token, no tokens at all (gasless transactions), or even other tokens such as ETH or USDC.

It's worth noting that gas fees generated within a specific Chainlet are directed to a wallet managed by the developer. This confers a high degree of flexibility to the Chainlet and its team in determining their preferred monetization approach.

Consequently, with Chainlets, developers benefit from predictable and low costs, an easy process for deploying their blockchains, and the capacity to horizontally scale applications. While Chainlets inherit security from Saga, there exists a method for a Chainlet to also leverage and inherit Ethereum's security using the Saga stack. Let’s delve into this aspect in the following section.

Zoom on a specific type of Chainlets: Ethlets

Saga Ethlet is a new Ethereum scaling solution that combines the best attributes from appchains, rollups, and validiums into a single product. Launching an Ethlet will be as easy as launching a Chainlet: with one click, an Ethlet can be created and inherit Ethereum's security.

How does this mechanism work? Ethlets work with three essential components: Data Availability, State Hash Commitment, and Fraud Proof.

At the end of each epoch (~ 1 day), blocks produced during that time frame are batched, forming the 'batched epoch'. A new epoch referred to as the 'challenge period' then begins. During this challenge period, Saga’s validators can use a fraud-proof mechanism (optimistic ZK or interactive) that enables the identification of any fraudulent transactions or state transitions that might occur within the blocks from the batched epoch. If, by the end of the challenge period, no fraud-proof has been presented, the state hash of the previous batched epoch is committed to Ethereum, and therefore, this committed state inherits the security of Ethereum.

This implies that there is a one-epoch delay for a state hash to be committed to Ethereum and inherit its security. However, it's important to note that blocks inherit Saga’s security even before being committed to Ethereum.

Finally, Saga will be used as a Data Availability layer, similar to a validium, to avoid the high Data Availability costs of Ethereum. An Ethlet thus achieves fast finality through Tendermint, facilitates rapid bridging, and leverages the advantages of IBC. This approach ensures cost-effectiveness while also inheriting Ethereum's security.

Conclusion

Saga offers any developer the ability to easily launch their application as a Chainlet and inherit Saga’s mainnet level of security and decentralization from the start. By choosing this option, the application will benefit from its dedicated blockspace, and the team will gain more control over the blockchain and the application layers compared to launching as a smart contract. If the developer choses, they can upgrade a Chainlet into an Ethlet and gain the benefits of Ethereum Security.

Saga is initially focused on gaming and entertainment chains, as we can notice from their partnerships. Gaming applications are one of the fastest-growing sectors in web3, and a gaming project, such as a video game, needs its own dedicated scalable blockchain capable of supporting high transaction volumes – exactly what Saga is offering and what Chainlets based on the Cosmos SDK can provide. As web3 gaming and entertainment continue to grow and the demand for scalable architecture for users increases, Saga presents itself as the solution to provide the necessary architecture and is confident in onboarding the next 1000 chains in the Multiverse.

About 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.

Networks
Network 101: Sei Network
Exploring the exchange trilemma, and how Sei Network claims to solve it
August 15, 2023
5 min read

In an eagerly anticipated milestone, Sei Network has successfully launched its mainnet, and Chorus One is honored to be a part of this journey as one of the network's genesis validators. As we step into this new phase, we're excited to explore the novel attributes that set Sei apart—specifically, its approach to solving one of the most intricate challenges in the blockchain landscape: the exchange trilemma.

Understanding the Exchange Trilemma

The exchange trilemma is a puzzle that has long perplexed the blockchain community. It represents a delicate equilibrium where decentralization, scalability, and capital efficiency often seem to be at odds with each other. Achieving progress in one dimension often comes at the expense of the others, creating a complex balance that many blockchain platforms grapple with—especially when it comes to exchange platforms.

Sei Network: A Solution to the Exchange Trilemma

The history of blockchain has been marked by attempts to reconcile these seemingly conflicting goals. Striving to optimize one aspect can inadvertently hinder the advancement of others. This intricate interplay of decentralization, scalability, and capital efficiency has posed a formidable challenge, particularly in the context of building platforms for digital asset exchange.

This is where Sei Network enters the scene as a transformative contender poised to tackle the complexities of the exchange trilemma head-on. Through a strategic blend of innovation and architectural ingenuity, Sei aims to harmonize these seemingly divergent objectives.

Key Innovations Shaping Sei's Solution

Sei Network introduces a series of pioneering innovations that collectively challenge the trilemma:

  1. Swift Finality: With a mere 300ms for transaction finality, Sei sets new standards for speed and efficiency, ensuring swift processing and an improved user experience.
  2. Twin-Turbo Consensus: The Twin-Turbo Consensus mechanism pioneered by Sei redefines industry performance norms. This pioneering consensus model enhances scalability and throughput while adeptly handling high transaction volumes.
  3. Market-Based Parallelization: Sei's market-based parallelization empowers simultaneous transaction processing, a critical component that amplifies scalability and network efficiency.
  4. Native Order Matching Engine: By incorporating a native order matching engine, Sei optimizes trading execution, resulting in an enhanced trading environment and improved capital efficiency.
  5. Frontrunning Protection: Sei prioritizes user integrity by implementing robust frontrunning protection mechanisms. This safeguard ensures fair trading practices, curbing malicious manipulation.

In essence, Sei Network defies the constraints of the exchange trilemma by offering a comprehensive solution that enhances decentralization, scalability, and capital efficiency. Its monolithic architecture, innovative consensus mechanism, and pioneering features underscore its commitment to shaping the future of Layer 1 blockchains.

Recent Strides and Developments

In the months leading up to its mainnet launch, Sei Network achieved significant milestones. A noteworthy accomplishment was the launch pool initiation for the Sei Network on Binance, announced on August 1, 2023. This marked the prelude to the mainnet launch, solidifying Sei's presence in the blockchain ecosystem. Furthermore, the official listing of SEI, Sei Network's proprietary token, on Binance on August 15th added to the momentum.

Notably, Sei Labs secured $30 million in strategic funding across two influential investment rounds, supported by prominent backers including Jump, Distributed Global, Multicoin Capital, and more.

Sei Network's journey continues to unfold, marked by advancements and partnerships that reinforce its standing in the blockchain landscape. As a monolithic blockchain geared towards solving the exchange trilemma, Sei Network is carving its niche by defying traditional limitations and offering a promising future for decentralized trading.

Ecosystem
Source : https://medium.com/fourpillars/sei-general-purpose-l1-for-trading-8fed600962af

Staking $SEI with Chorus One

SEI can be delegated to the Chorus One via the Sei App

Current Staking APR: 8.33%

For any other questions, reach out to staking@chorus.one

Useful Links and Resources:

About 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.

Guides
Networks
How to stake ETH on OPUS via Ledger/Metamask
A step-by-step guide to staking ETH on OPUS via Ledger/MetaMask
July 26, 2023
5 min read

This step-by-step guide is designed to help you stake Ethereum on OPUS. Throughout this guide, we will break down the process into simple, manageable steps.

1. Connect Ledger to Metamask

  • We assume that you have a ledger with some ETH, and versed with using Ledger. Please reach out to our team for any support here.
  • Please follow the instructions found in this link to connect Ledger with Metamask: https://support.ledger.com/hc/en-us/articles/4404366864657-Connect-your-Ledger-to-MetaMask?docs=true

💡 Tip: If you face the below error(0x650f), please follow this link to resolve the error.

💡 Tip: After this configuration, Metamask doesn’t have access to Ledger private keys. This configuration allows Ledger to leverage Metamask as a visual interface.

2. Enable Blind Signing on Ledger by following the steps shown in this link: https://support.ledger.com/hc/en-us/articles/4405481324433-Enable-blind-signing-in-the-Ethereum-ETH-app?support=true

You have now successfully connected Ledger to Metamask. Next step is to Login to OPUS Poral.

3. Our sales team must have sent you your login credentials. If not, please reach out to them here

4. Now, please enter your organisation name, and login with SSO.

5. Connect Metamask to OPUS.

6. Select Amount of ETH using the Slider

💡 Tip: OPUS Staking slider helps you stake up to 800 ETH(25 Validators) in one transaction.

💡 Tip: OPUS staking screen shows the backward looking APR, and projected rewards.

7. Confirm stake transaction on Metamask.

8. Approve transcation on Ledger

  • Steps involved: Review Transaction > Blind Signing > Amount 800 ETH > Address > Network > Max Fees > Accept and Send

You have now staked Ethereum on OPUS!  To stake more, please follow the guide from step#6.

If you are facing any issues, please reach out to us at Chorus One support.

About 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.

Opinion
Networks
Others
Ethereum Stake and Unstake 101
We take a look at expected times to participate in Ethereum staking.
July 3, 2023
5 min read

Ethereum Stake and Unstake 101

We take a look at expected times to participate in Ethereum staking.

Ethereum protocol times are measured in epochs, with 1 epoch being 384 seconds or around 6 and a half minutes. For ease of understanding, times based on these measurements have been translated roughly into minutes, hours and days.

Staking

  • Every signed transaction visits the Ethereum mempool first, which can be referred to as the waiting room for transactions. Here the pending time is unknown, and will depend on network status, chosen gas fee and priority fee.
  • Deposited - Once the transaction reaches the deposit contract (assuming it’s correct), the validator has a status of Deposited, meaning it has been accepted by the Execution Layer. At this point, the Consensus side is unaware of this deposit. Here there’s a waiting mechanism that is a legacy of our pre-Merge past, used to avoid the minuscule possibility of a chain reorg (might be removed in the future). The validator sits here for ~7 and a half hours.
  • Pending - Once the deposit agreement has been finally accepted by the Consensus Layer, it moves to Pending state, meaning it has been added to the “staking queue”. Ethereum only allows a small number of validators to start or stop validating at a time ~(2025* a day), to maintain stability of the validator set. This takes from at least 25 minutes but can extend depending on the queue; right now it’s ~6 weeks. Timing can impacted with churn rate changes, so this exact time might be slightly lower.
Pending Validators

 88,885 / 25

 Source: https://beaconcha.in/

  • Active - The validator is attesting to and proposing blocks. This is the state where you earn rewards!

Conclusion: Staking takes at least 8 hours, but it is very likely to take a lot longer as the demand to stake grows and more validators are added to the queue (the queue at the time of writing is 88,885 validators waiting). The waiting time right now is about a month and a half.

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Unstaking

  • Exiting - The validator is in the process of halting attesting to and proposing blocks. This means you have signed a valid voluntary exit or you’ve been slashed. Either way, you need to keep up your duties for now. When in exiting state, it means you’ve been added to the “withdrawal queue”. To move through this queue takes at least 25 minutesbut can extend depending on the queue; right now it’s 25.
Pending Validators

88,885 / 25

Source: https://beaconcha.in/

  • Slashing - Slashing is a very small risk in Ethereum, but for informational purposes, let’s talk about this state. The validator is in the process of halting attesting to and proposing blocks, having been caught violating some consensus rule. You still have to perform duties, but you will get kicked out of the set. You also move through the queue but you’ll need 36 days to access the funds to account for extra penalties.
  • Exited - The validator is no longer attesting or proposing, you are safe to disconnect the node clients. After exit there is one final delay of approximately 1 day before funds can be transferred to the withdrawal address.

Conclusion: Unstaking takes at least 25 minutes, but can vary depending on the withdrawal queue with a similar model as staking (the queue right now is 25 validators waiting and is expected to clear quite quickly). You also have a 1 day delay to access funds. So, all in all the waiting time right now is about 1 day.

* This number corresponds to the churn rate applied to the staking and withdrawal queues. For every 65,536 additional validators that are active on the Ethereum network, the number of new validators that can be activated per epoch increases by one, and the number of validator exits that can be processed per epoch also increases by one. Right now, the churn rate is 9.

News
Networks
Network 101 - Archway: The blockchain built for developers
Chorus One announces staking support for Archway Network
July 3, 2023
5 min read

Amidst the dynamic blockchain landscape, Archway Network stands out as a platform that has captured the attention of developers and enthusiasts alike. This blog delves into the unique features and opportunities that Archway offers, shedding light on its architecture, tokenomics, use cases, developer rewards, and recent activities that ascribe it as a prominent player in the ecosystem.

Archway’s Architecture: Where Innovation Thrives

Archway Network is a testament to visionary architecture. By leveraging the Cosmos SDK, Tendermint, and CosmWasm, the Archway team have built an infrastructure that excels in speed, scalability, and security. What truly sets Archway apart is its seamless interoperability through the Inter-Blockchain Communication (IBC) protocol, which fosters a cohesive ecosystem where data and value can flow freely between different blockchains.

Unlike L1 blockchains that primarily focus on token distribution to early participants, Archway takes a different approach. It recognizes the value and impact of developers and builders by incentivizing them based on their contributions to the network. This unique model aims to level the playing field among developers, providing equal access to capital and support, regardless of their connections or associations.

Tokenomics: Incentivizing Developer Contributions

Archway introduces a novel approach to developer rewards by exploring revenue distribution alternatives. Beyond gas fees, developers building on the network are incentivized through a meticulously designed combination of gas rebates, inflation, and premiums. This multifaceted reward system ensures that developers are recognized and rewarded for their invaluable contributions to the network.

Gas fees are not just divided up among validators and dApps, but split evenly between them, ensuring a fair distribution of rewards. But Archway doesn't stop there—it pushes the boundaries further. With the inflation rate at 10% and expected APR ranging around ±21% at launch, developers have a stake in shaping the network's future.

A quarter of the inflation is allocated to the dApps rewards pool, a vibrant ecosystem where developers are rewarded based on the gas generated by their applications within a given epoch. Additionally, developers have the freedom to set custom fees for interactions with their smart contracts, enabling them to earn 100% of the charges and fostering a direct stake in their application's success. By seamlessly embedding these fees within the network fee, Archway Network delivers a user-friendly experience, sparing users from the complexity of multiple fees.

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Use Cases

Archway Network opens up a wide range of possibilities for developers and entrepreneurs. By rerouting their rewards to a shared pool, developers can subsidize gas fees for users, creating a more familiar and accessible experience akin to traditional web applications. This user-centric approach revolutionizes the way people interact with blockchain-powered applications, removing the burden of high transaction costs and propelling mainstream adoption.

Moreover, Archway Network empowers developers to swiftly launch their dApps without the need to bootstrap a standalone chain. For early-stage projects struggling to secure funding or establish a secure blockchain, Archway provides a springboard for testing product-market fit and scaling ambitions. Developers can prototype and iterate on Archway before transitioning to their own appchain or rollup, amplifying their chances of success.

Archway isn't solely focused on providing a versatile blockchain infrastructure—it also fosters a vibrant and supportive developer community. By offering a plethora of hackathons, workshops, grants, bug bounties, and developer-focused initiatives, Archway stimulates a culture of innovation and collaboration. Developers are incentivized to create new modules, tooling, and applications that enrich the ecosystem and unlock new possibilities.

Check out some of Archway’s key initiatives here:

Hackathons: https://blog.archway.io/tagged/hackathons

Workshops: Archway Workshops

Grants: https://blog.archway.io/accelerating-value-capture-the-archway-foundation-grants-program-40f3edbdf9

Governance

Archway Network implements a governance model that allows participants and token holders to actively shape the protocol's future. Through proposals and on-chain voting, Archway's decentralized community can influence the direction of the platform. Governance is facilitated by their native token, $ARCH, which ensures fair and transparent participation. Holders of the token can propose changes and vote on active proposals, with consensus being reached through a defined threshold. Engaging with the Archway community involves actively participating in governance by submitting proposals or casting votes on existing ones.

Recent Developments

In its relentless pursuit of excellence, Archway Network has achieved several milestones that highlight its potential as a catalyst for change. Notably, the launch of its incentivized testnet, the successful completion of multiple security audits, and the adoption of WebAssembly (Wasm) have garnered attention from developers and blockchain enthusiasts alike. Now with the mainnet launch, Archway is poised to reshape the blockchain landscape, offering an unprecedented level of developer empowerment and accessibility.

Deep Dive into Archway network: https://www.youtube.com/watch?v=TCoTNlzohIo

Useful resources:

Website: https://archway.io

Twitter: https://twitter.com/archwayHQ

Medium: https://medium.com/@archwayHQ

Github: https://github.com/archway-network

Docs: https://docs.archway.io

Discord: https://discord.com/invite/5FVvx3WGfa

Reddit: https://www.reddit.com/r/Archway/

Telegram: https://t.me/archway_hq

Staking $ARCH with Chorus One

Inflation rate: 10%

Staking APR: expected ±21% at launch (with 35% ARCH staked)

To start staking with Chorus One, reach out to staking@chorus.one.

About 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.

Guides
Networks
How to stake MATIC (Polygon)
A step-by-step guide to staking MATIC with Chorus One
June 5, 2023
5 min read

Polygon is a Layer 2 scaling solution built on Ethereum that aims to provide multiple tools to improve the speed and reduce the cost and complexities of transactions on blockchain networks.

Overview

  1. To start staking $MATIC, first log in to https://staking.polygon.technology/ on the browser of your choice.

Ensure that the browser has integrated any of the wallets supported by Polygon.

  1. Then, click on Login and connect to the wallet of your choice. Click ‘View all’ to see all the wallets supported by Polygon. We have chosen MetaMask.
  1. Once you have connected your wallet, click on ‘Become a Delegator’, and search for ‘Chorus One’ amongst the list of available validators.

Click on ‘Chorus One’ to verify all the details. Ensure that the Validator address (shown as ‘Owner’) is 0xbbd83024be631bb6f3dd3c0363b3d43b5d91c35f.

Note: The commission rate to stake $MATIC with Chorus One is 5%.

  1. Once you have verified all the details, click ‘Become a Delegator’ .
  1. Next, enter the amount of $MATIC you would like to stake. Then, click ‘Continue’.
  1. You will be redirected to your wallet to approve the transaction, which will take a few minutes.

You have now completed the process and staked your $MATIC with Chorus One!  

About 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.

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