Proto-danksharding, blobs, and data availability are terms becoming increasingly familiar in the Ethereum community, all leading up to the Dencun Upgrade – Ethereum's most significant update since Shapella.
With less than a month to the upgrade, Chorus One is here to provide you the essential information about this pivotal event, including three key staking/validator based Ethereum Improvement Proposals (EIPs) involved, with a special focus on the much-anticipated EIP-4844.
In April 2023, we explored the post-Shapella landscape in our blog article "Beyond Shapella," highlighting the significant impact of the Shapella upgrade on Ethereum staking. This upgrade introduced the flexibility to withdraw staked ETH and rewards, captivating institutional interest in Ethereum, the second-largest cryptocurrency by market cap.
The Shapella upgrade marked a turning point, boosting ETH's staking appeal among institutional investors. Since then, Ethereum's roadmap has seen several developments, leading us to the brink of another major milestone - the Dencun upgrade. This forthcoming hard fork is set to advance Ethereum's evolution, promising to tackle existing challenges and open up new opportunities.
In fact, Ethereum jumped 28% since the start of February and rose above $2,900 at the time of writing, as the Dencun upgrade approaches and transaction numbers on L2s climb up.
The Ethereum Cancun-Deneb (Dencun) Upgrade, scheduled for March 13, 2024, is a pivotal hard fork aimed at enhancing the network's scalability, security, and usability. This upgrade, incorporating key Ethereum Improvement Proposals (EIPs) such as EIP-4844 for proto-danksharding, is set to improve network efficiency and lower transaction costs. Building on the achievements of prior updates like the Shanghai upgrade, Dencun seeks to fortify the infrastructure for decentralized applications and elevate the Ethereum user experience.
At its heart, the Dencun Upgrade integrates advancements from the Cancun upgrade on the execution layer with those from the Deneb upgrade on the consensus layer, employing a dual approach to refine Ethereum's protocol rules and block validation procedures. The inclusion of various Ethereum Improvement Proposals (EIPs), especially Proto-Danksharding, is geared towards enhancing scalability from different dimensions.
Additionally, the upgrade will introduce a series of other EIPs, including EIP-4788, EIP-6780, and EIP-5656. While this article will concentrate on the most crucial proposal, EIP 4844: Protodanksharding, it will also touch upon three staking and validator-centric improvements within the Dencun Upgrade: EIP-7044, EIP-7045, and EIP-7514.
EIP 7044: Perpetually Valid Signed Voluntary Exits
The introduction of EIP-7044 marks a significant advancement: exit messages will have indefinite validity, removing the need for continual updates and ensuring a smoother withdrawal process. This EIP specifically targets the challenge posed by the limited lifespan of signed voluntary exit messages, simplifying the staking landscape, especially in cases where the staking operators and fund owners are not the same.
TL;DR: EIP-7044 makes it easier to withdraw staked funds by ensuring that exit requests don't expire. This removes the hassle of having to update these requests regularly, especially helpful when the staking operators and fund owners are different.
EIP 7045: Increase max attestation inclusion slot
EIP-7045 modifies the timeline for attestations, extending the inclusion period from one rolling epoch to two fixed epochs. This adjustment gives validators additional time to incorporate their attestations into a block, thereby enhancing the security and stability of Ethereum's Proof of Stake (PoS) consensus mechanism. The expansion of maximum attestation slots contributes to quicker block confirmations and bolsters the consensus mechanism's resistance to short-term censorship attempts.
TL;DR: EIP-7045 changes how long validators have to get their approvals into a block, extending it from one flexible time period to two set time periods. This extra time helps make Ethereum's system for confirming transactions more secure and stable, speeds up the process of confirming blocks, and makes it harder for anyone to temporarily block or censor transactions.
EIP-7514: Add max epoch churn limit
EIP-7514 proposes to change how fast new validators can join the Ethereum network. Instead of the current system where the number of new validators can grow quickly (exponentially) because the amount of new validators accepted also grows, this proposal suggests a steady (linear) increase by setting a limit of 8 new validators per epoch (~6.4 minutes). This means no matter how many people want to become validators and how big the active set grows, only 8 will be able to join in each epoch. This approach aims to make the network more manageable, especially when a lot of people are waiting to stake their ETH. It helps prevent the network from getting overloaded and keeps everything running smoothly.
TL;DR: EIP-7514 plans to limit the number of new validators joining the Ethereum network to 8 every 6.4 minutes. This change aims to control growth and prevent the system from becoming overloaded, ensuring it runs smoothly even when many people want to stake their ETH.
EIP-4844, known as Proto-Danksharding, is a key update to Ethereum that introduces a new type of transaction called "blobs", for better data storage efficiency. This allows for more cost-effective data posting to the Ethereum mainnet by Rollup sequencers, without overloading the network, due to the controlled size and quantity of blobs in each block. The innovative aspect is the temporary storage of blob data in Ethereum's consensus layer, not its execution layer, which boosts scalability while keeping the network decentralized. Proto-danksharding sets the stage for further scalability enhancements, such as full Danksharding, by improving gas consumption and network resource management.
Proto-danksharding allows these rollups to employ data blobs for posting grouped transactions more affordably, greatly decreasing operational expenses and enhancing scalability.
The Dencun upgrade is set to significantly enhance Ethereum's appeal, making it more attractive for developers, builders, and investors, by boosting transaction efficiency and cutting costs.
At Chorus One, we've been diligently preparing for this upgrade, ensuring our clients and software are updated in a timely manner to prevent any impact on our users. Our proactive approach underscores our dedication to facilitating a smooth transition and maintaining strong staking support after the upgrade.
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ 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're excited to announce the launch of "Staking Synopsis", a series dedicated to keeping Ethereum stakers and enthusiasts informed about the latest updates in ETH staking, including the developments at Chorus One.
With the highly anticipated launch of EigenLayer's Mainnet scheduled for April, and its rising prominence in the Ethereum community, we're kicking off the series with a special focus on Restaking.
As frontrunners in Ethereum research, we're focused on developing a carefully curated restaking strategy to optimize the benefits of this technology for our users.
So, our series will cover everything you need to know about our approach, which positions us as a top choice for ETH staking and restaking among node operators.
Let's dive into our first edition!
Engaging with EigenLayer by depositing liquid staking tokens (LSTs) or your staked ETH enables you to accumulate ‘Restaked Points’, reflecting your contribution to the EigenLayer ecosystem's collective security. These points are calculated based on the duration and amount of your staking participation.
By accumulating ‘Restaked Points’, you not only enhance your rewards on your LSTs or staked ETH but also become eligible for potential airdrops!
Note: Please be aware that although staked ETH deposits into EigenLayer are currently accepted and can be withdrawn at any time, rewards can only be redeemed after the launch of EigenLayer’s Mainnet and once the Activated Validator Services (AVSs) utilizing EigenLayer's pooled security become operational.
Chorus One makes the staking and restaking process straightforward and efficient.
Here’s how it works:
Delegating your restaked ETH to Chorus One
At present, you can only deposit your staked ETH into EigenLayer; the option to delegate to node operators is not yet available.
We will notify you once the delegation feature on EigenLayer becomes operational, indicating that it's time to delegate your restaked ETH. At that point, you will be able to delegate to Chorus One with just a few clicks.
Visit OPUS ‘Dedicated’ to get started.
Note: Restaking LSTs with EigenLayer is currently on hold and will resume once the deposit cap is raised. In the meantime, you are welcome to use OPUS 'Pool' to stake any amount of ETH and mint osETH.
Visit OPUS ‘Pool’ to get started.
Chorus One aims to make restaking as accessible and simple to all users as possible. In doing so, we have a tailored AVS and restaking strategy that makes this possible in the following ways:
Selective AVS Strategy: Contrary to other node operators who may aim to onboard as many AVSs as possible, Chorus One adopts a more strategic approach.
We prioritize security and are currently in the process of carefully vetting AVSs for which we provide infrastructure. Given any risks associated with restaking, we believe it's crucial to conduct thorough research on each project we support.
Enhanced Rewards with Adagio: As pioneers in MEV research, Chorus One stands out by utilizing an in-house Ethereum MEV-client, Adagio. This unique tool enhances the MEV yield for all ETH validators we run by implementing strategic timing games. Learn more about Adagio here.
By choosing to stake and restake with Chorus One, your validators benefit from using Adagio, yielding higher rewards compared to alternatives.
Top-Tier Security with ISO 27001:2022 Certification: Chorus One is among the select few node operators to achieve the ISO 27001:2022 certification, a globally recognized standard for security.
This certification isn't just a formality for us; it's a reflection of our deep commitment to maintaining the highest levels of security in our staking infrastructure, operations, and systems, ensuring our customers' peace of mind.
(Source: Dune Analytics)
An EigenPod is a user-managed smart contract designed to aid in the administration of balance and withdrawal statuses within the EigenLayer protocol.
When organizing your EigenPod and delegating your restaked ETH to a node operator, consider the following: You may point multiple validators to a single EigenPod.
This underscores the importance of judiciously selecting a node operator to delegate your staked ETH to, taking into account their specific restaking and AVS strategies.
If you’re interested in staking/restaking with Chorus One, or learning more, simply reach out to us at staking@chorus.one and we’ll be happy to get back to you! Here are some useful resources for your benefit:
Additionally, if you’d like us to share further resources on any topic, please let us know!
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ 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.
After what might have been the most anticipated launch so far, we're thrilled to be part of the continued innovation of blockchain technology by championing Dymension, as they work to pioneer the 'Internet of RollApps' with their unique modular features. Chorus One runs a public validator node and has also invested in Dymension through Chorus Ventures.
Dymension makes it easy for anyone to create and deploy their own blockchain, while providing its users the infrastructure and flexibility to scale and compete with other modern-day blockchain implementations.
In this guide, we'll cover what Dymension is and how it's pushing the boundaries of blockchain capabilities.
Unlike traditional blockchains that integrate data availability, consensus, settlement, and execution into a single layer, Dymension adopts a modular approach. This innovative method allows delegating one or more of these components to external chains, significantly enhancing performance, scalability, and efficiency.
Dymension aims to improve upon the current reliance on shared bandwidth systems used by many popular blockchains by using a multi-layer blockchain protocol. Consisting of a network of modular blockchains, known as "RollApps", these blockchains are powered by the Dymension Hub which is responsible for both consensus and settlement.
While initially the Dymension team will oversee RollApp approvals, the network aims to evolve into a permissionless ecosystem with the ultimate goal of serving as a decentralization router that connects RollApps to the crypto economy. In the long run, this will allow Dymension to be a "Internet Service Provider" for crypto and blockchain technologies.
To further detail its architecture, Dymension utilizes the Cosmos SDK for interoperability across blockchains, enabling RollApps to efficiently communicate and transact. The use of Tendermint Core for consensus ensures high security and fast transactions across the network. This technical foundation allows Dymension to support a wide range of applications, from finance to gaming, by providing developers with the tools to create highly scalable and customizable solutions.
As Dymension evolves, its architecture is designed to support a growing ecosystem of decentralized applications, ultimately facilitating a seamless connection between users and blockchain services on a global scale.
Dymension's unique proposition lies in its sophisticated modular architecture, designed to decentralize and optimize the components of blockchain functionality. By enabling external chains to handle aspects like data availability, consensus, and execution separately, it aims to not only significantly boost performance but also provide improved scalability and efficiency for all.
Here's how the Dymension team explains the ecosystem:
Dymension is similar to a full-stack web application where users interact with RollApps (front-end), Dymension (back-end) acts as the coordinator for the ecosystem, and the data availability networks (database) provide a place to publicize data.
Using the Cosmos SDK, Dymension incorporates a staking mechanism that enables participants to stake or unstake tokens with validators. This feature is central to maintaining the security and integrity of the network, allowing stakeholders to contribute to the ecosystem actively.
To kick off Genesis Rolldrop Season 1, Dymension is working to incentivize its users and builders by providing a significant allocation of tokens to pay tribute to three verticals within crypto, culture, money, and tech.
The tokenomics ($DYM) as of Feb 6th is as follows:
Total Supply: 1,000,000,000
Chorus One Valoper address: dymvaloper1ema6flggqeakw3795cawttxfjspa48l4x0e2mh
The Inter-Blockchain Communication Protocol is an important aspect of Dymension. IBC is a battle-tested bridging protocol that allows secure communication between different chains. RollApps connect to the IBC economy via Dymension Hub, similar to how a server connects to the internet via an internet service provider.
Dymension is working to reduce the reliance on centralized and commonly used multi-sig bridges prevalent in Ethereum and L2 ecosystems with IBC-connected rollups. By utilizing IBC for rollups, Dymension validates that all funds deposited into a RollApp are as secure as the Dymension Hub itself.
We firmly believe Dymension stands at the forefront of the next generation of blockchain technology, with its modular architecture promising to improve upon scalability and efficiency challenges faced by traditional blockchains. As supporters and collaborators, we continue to advise the team to best position themselves for a successful mainnet launch and beyond.
We are excited about the potential of Dymension to revolutionize the blockchain ecosystem, reinforcing our commitment to innovation and the growth of blockchain technology.
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ 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.
Summary
EigenLayer’s mainnet is just around the corner and has been the talk of town lately. In a nutshell, EigenLayer is a new primitive that democratizes access to restaked rewards by aggregating and propagating cryptoeconomic security to a broad suite of applications being built on top of Ethereum.
Chorus One has long been immersed in the ecosystem, and has now proudly launched our newest solution to further simplify ETH staking - OPUS Pool. This new product allows any user to easily stake ETH, mint osETH, and integrate with EigenLayer seamlessly, streamlining the process for both new and existing customers.
Additionally, users have the extra benefit of depositing not only osETH, but any other accepted liquid staking tokens (currently, stETH, cbETH, and rETH) into EigenLayer - making it significantly easier for anyone to participate in ETH restaking and earn additional rewards.
Kick-start your ETH staking journey with Chorus One! Enter the OPUS Pool here.
In this article, we break down the fundamentals of EigenLayer and Restaking, key benefits and risks, Chorus One’s involvement in the ecosystem, and how investors and institutions can restake seamlessly using the OPUS Pool. Dive in!
Restaking in the context of Ethereum, as defined by Vitalik Buterin, is a process that allows stakers to extend their staked assets' utility beyond the Ethereum network. This concept, integral to Ethereum's Proof of Stake (PoS) framework, enables staked ETH to not only support Ethereum's network but also to bolster the security and trust systems of other blockchain platforms.
Through restaking, assets that would otherwise be dormant within Ethereum gain a new functionality, serving multiple networks simultaneously and offering stakers the opportunity to earn additional rewards from various sources. Ethereum's dense network of validators and the spread of staked assets contribute to its robust security, making it an ideal candidate for restaking.
EigenLayer has pioneered this primitive by integrating smart contracts into Ethereum, facilitating restaking and expanding the possibilities for asset utilization.
It creates a market-driven ecosystem where security is pooled and governed by supply and demand. Users can opt-in to EigenLayer smart contracts to restake their $ETH or LST(liquid staking token) and extend cryptoeconomic security to additional applications on the network. Part of EigenLayer’s potential, therefore, lies in its ability to aggregate and extend cryptoeconomic security through restaking and to validate new applications being built on top of Ethereum or beyond.
Actively Validated Services (AVS), essentially new projects or applications building on Ethereum, can tap into this pool, consuming security based on their needs while validators opt-in at their discretion, weighing risks and rewards. This system negates the need for AVSs to establish their own validator networks, instead allowing them to utilize Ethereum’s existing security infrastructure.
EigenLayer not only enhances capital efficiency by enabling staked tokens to be used across multiple protocols but also simplifies the process. Ultimately, it aims to unify cryptoeconomic security within a single ecosystem, reducing the fragmentation of security across protocols and increasing trust through a larger validator network.
There are two key advantages:
Firstly, stakers can earn or stand to earn additional rewards through restaking by taking on more responsibilities.
Secondly, emerging protocols benefit from the robust security provided by Ethereum's established pool of validators. This creates a mutually beneficial relationship between Ethereum's foundational layer and other blockchain protocols, enhancing the overall ecosystem.
Before taking a deeper look into the ecosystem and how users may get involved, let’s take a look at the fundamental ideas introduced by EigenLayer:
By combining these ideas, EigenLayer serves as an open marketplace where AVSs can rent pooled security provided by Ethereum validators.
While Restaking with EigenLayer presents numerous benefits, there are certain challenges and risks.
There are primarily two categories of risks associated with restaking with EigenLayer:
(1) many operators may collude to attack a set of AVSs simultaneously
With only a subset of operators choosing to restake in specific AVSs, this selective participation opens the door to potential collusion among operators, who might conspire to compromise the system for financial gain, particularly if they are restaking across multiple AVSs with substantial total locked values.
(2) the AVSs built on EigenLayer may have unintended slashing vulnerabilities — this is the risk of honest nodes getting slashed.
The risk of unintended slashing is significant, especially in the early stages of AVS deployment before thorough battle-testing. Vulnerabilities, such as programming bugs, could trigger slashing and result in losses for honest participants. To mitigate these risks, EigenLayer proposes rigorous security audits of AVS codebases and a governance layer capable of vetoing unjust slashing decisions.
We’ll cover the potential risks and management strategies in more depth in an upcoming article in this EigenLayer series, stay tuned!
Chorus One has been actively engaged in the EigenLayer ecosystem since its early days, evolving alongside it, and has recently integrated EigenLayer restaking into our latest product, OPUS Pool.
OPUS Pool is our latest addition to the OPUS product suite enabling anyone to stake any amount of ETH with Chorus One. Not only that, users also have the extra benefit of depositing any other accepted liquid staking tokens (including osETH, stETH, cbETH, and rETH) into EigenLayer in one go!
Essentially, we have opened up an avenue for anyone (OPUS and non-OPUS users) to participate in restaking as easily as possible.
For a step-by-step guide on how to get started with restaking with Chorus One, visit our comprehensive guide.
Additionally, we have been greatly involved within the ecosystem in a multitude of ways:
…. And more!
EigenLayer revolutionizes staked asset utilization, enhancing validator rewards and strengthening protocol economies. It catalyzes the creation of innovative protocols and services, enriching the Ethereum ecosystem. This advancement fosters Ethereum's growth, making it more attractive to institutional investors by allowing a single staking mechanism to secure diverse protocols, improving resource use and network efficiency, and broadening the stakeholder base.
Why should you choose Chorus One for Restaking?
To start your ETH staking journey with Chorus One, head to OPUS Pool!
Check out our step-by-step guide for a comprehensive overview of how you can get started.
For any questions, information, or suggestions, please reach out to us at staking@chorus.one, and we’ll be in touch!
A step-by-step guide to the OPUS Pool for ETH Staking
MEV Max - Introducing Chorus One’s vault on StakeWise V3
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ 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.
