The Role of Operators, Slashing, and Liquid Restaking with EigenExplorer

Transcript

GM Gan welcome back guys uh today we've got Liam the founder of igen explorer who is going to be talking about restating in general and unifying this complicated ecosystem welcome to igen lay unlocked an interactive educational Journey Through the Igan laay ecosystem created by technical Founders and builders for the entire crypto Community a special thank you to our partners allir polymer AU authentic skate and lrange for helping to make this happen our goal is to raise the collective knowledge of the Igan Lair AVS ecosystem and unpack the technical designs of the top teams in space welcome to igen layer unlocked GM

Gan welcome back guys uh today we've got Liam the founder of igen Explorer uh who is going to be talking about reaking in general and uh unifying this complicated ecosystem uh for more streamlined process Liam welcome to the show hey Robbie thank you uh thank you for having me and uh yeah today I'm going to really dive into the complexities of reaking protocols and uh specifically focusing on IG obviously one of the major player in the space and the entity who coined the the name we're taking right and just kind of like to give you guys an overview of what we're going to talk about I'll walk you guys

through how your stake uh from the perspective of Staker gets distributed internally within a restating protocol and uh how they're flowing through operators and services and highlight how reaking decisions are being rewarded right and we'll focus specifically on a design called operator quorums or uh if you've seen igon layers latest blog it's being sort of upgraded or rebranded into operator sets but similar Concepts uh minute sort of uh differences in terms of how slashing are being uh um carried out but we're not going to focus on those areas today and as we'll see you

know this design the specifically the operated Quorum or sets design not only affects all of the participants but also influences how incentives flow through the ecosystem and the key point that I want to drive home is that not all restak decisions are created equal right different assets operators and strategy yeld dramatically different outcomes and uh um I'll show you guys how at the very end I guess we at IG Explorer are thinking about optimizing or simplifying the restak infrastructure that makes it a lot more easy to use um and how um to make the entire reaking Marketplace flow

more efficiently cool and let's get started so you know reaking is really an glance as a Staker holding quality assets like ethereum or Bitcoin you are already earning a base yield or Market beta by taking on additional slashing risks basically um in particularly in a say delegated proof of stake uh dpos system you can earn actra rewards on top of your existing staking returns and uh this is a really sort of um enticing opportunity really no-brainer uh honestly especially when you know the service at the very

end um aligns with the ethereum's high standards right so for resters you know taken from the resters perspective reaking essentially offers them leverage increasing your risk adjusted return uh provided that you understand the investment risks right and the understanding is this risk understanding is very crucial uh as we'll we'll explore very shortly and uh but from the other sort of perspective if we're looking from the service perspective this is actually where I believe reaking becomes vital to our industry right um if we're talking more broadly or or philosophically um uh in this sense you

know I recently watched uh gelato founder Lewis actually appearing in your show um the rollup um you know Lewis T discussed the evolution of services in web to uh basically in a nutshell in web to we witness a significant evolution in service hosting and management we started with local hosting which was incredibly painful and inefficient and this led to the rise of managed services like AWS and gcp which provided virtual servers and a evated much of the infrastructure management burden but the industry then kind of progressed to even more specialize vertical specific manage platforms uh

such as versel for front-end hosting you know further simplifying development and deployment process but there's a problem that in web 3 this is hard to achieve and really presents a unique challenge um the solution for web 3 isn't a single managed plat form to host many services as we've already seen you know in ethereum's case I guess um which this approach we've already seen has led to you know a lot of the common pitfalls of a monolithic architecture uh the fundamental issue is really that we can't horizontally scale our our underlying infrastructure while maintaining

decentralization in the same way the same way our web two counterparts can right so how do we scale in web 3 uh the only viable path uh that actually aligns with the Channel's name very very well is that we need to keep things very modular right we need to keep things very modular and in a philosophical sense hyperscaling the quantity or the actual numbers of different services and we've in fact already made significant progress on the technical aspects right Innovations like uh ZK proofs and a variety types of rollups um really makes it Easy by the day to launch and scale

services but uh other than the technical aspects right there's another crucial piece of the puzzle or equation that hasn't received as much attention which is really the economic and incentive portion of the equation right until now we've generally assumed that you know these Services whether it's a rollup whether it's app chain or whatever you know to follow follow the centralized first and decentralized later pattern um um which is kind of hard um uh for for for the ecosystem to grow right and uh this approach often requires you know these projects raising enormous amount of capital sometimes up to a few hundred

million dollars before launching the actual product right and the effort involved in the co- process assembling support from The Operators and the stakers is is is is immense and this co-star problem of decentralized service really poses a very significant barrier to Innovation and growth in our space and this is where I believe I think from a um U sort of I guess I mentioned this already the Phil philosophical sense where uh reaking can be truly transformative you know it's not just a tool it's you know obviously a tool for enhanced yield for the stakers but it's also a way to hyperscale the sheer

quantity of services which is very very important and by lowering these entry barriers and providing a ready pool of Economic Security uh along with those operators basically standing by to operate your service reaking could really enable a proliferation of new services and ideas right and uh the beauty of this approach really lies in the numbers right it's much easier to generate one good service out of 10,000 competitors than just you know 20 services in total and by enabling simply the of more services to launch and compete in our space we create an environment where truly Innovative and efficient Solutions can emerge and

Thrive uh May the fittest win you know if we're quoting Darwin so this reing model could fundamentally change how we approach the creation and scaling of decentral decent wise Services right it democratizes the process um allowing for more experimentation and Innovation and creates a natural selection mechanism where the most valuable and efficient services will attract more stake and flourish so how are we going to design this thing right obviously from the previous slide we are only seeing the very simple two-part exchange over here uh and in order to really fully realize

what we wanted do um or what we want to achieve here as a ecosystem or to unlock the full potential of reaking right connecting the stakers with valuable assets and funneling them to boost strap Services what we really need to do is to design a well-coordinated Marketplace I think if you guys have heard about three talking about this coordination um is something he mentioned very often but traditionally you know we've been doing this um uh you know in in the traditional sense we've been doing this quite manually through extensive Business Development work in the sort of previous staking operation um land landscape right and now what we want to

do is essentially replace all of these human labor with the Invisible Hand of the market right so we need to kind of like uh basically to B down we need to have a market that runs itself and ultimately produces the the efficient Frontier where uh every party are are working with each other in a very efficient manner um so but first let's let's actually introduce some players who are participating in the ecosystem for for those who doesn't know right uh and first we have the operators which is a New Concept um if you are not familiar with reaking um these are the entities that run the services you know ensuring

very smooth and efficient operation of those services and they form a basically the backbone of the reaking ecosystem providing the technical expertise and infrastructure necessary to keep Services running and stakers we've already talked about the uh the the the provide committing their assets to provide security to operations and by extension to the services and uh service consumers actually while you know they they might not fit neatly in our chart they are a very vital um participants to the overall system you know these consumers generate revenue for the services over to the right corner and uh uh which in turn contributes to the

return of the stakers can earn you know without service consumers the entire ecosystem will lack a sustainable source of value and on top of this the reaking space right now is actually incubating another very important role that I think people tend to gener generalize a little bit the strategy managers right currently all of the liquid reaking tokens or the lrts or even operators are actually a very crude form of strategy managers as we delve deeper into the inner workings of the reaking protocols we'll see that the complexities grow dramatically and the the current sort of uh strategy manager landscape will change dramatically because of this and

this increasing complexity really makes the role of um sort of strategy managers very important right these entities will help uh stakers navigate the intricate landscape of reaking opportunities and optimizing strategies to maximize return while managing risks right as our ecosystem matures we are likely to see you know more and more modelers um uh and strategy managers in this emerging in the space and uh creating sophisticated algorithm and tools to analyze uh and optimize the strategies uh they're essentially the market makers in the reaking marketplace right the people who bring efficient

Frontier to the market and uh ultimately right with these participants there are lots of complexities right um but I think it's both a challenge and an opportunity it opens up really a lot new a lot more new avenues for Innovation specialization and value creation within the entire web 3 space and uh as we move forward you know understanding and leverage this complexity will really be key to realizing the full potential of reaking uh not just you know from a very simple narrative a a a derivative that helps um asset holders to create more yield but also a powerful tool that

could potentially really shape the future of our space right so hopefully that's kind of like a uh a brief intro about reaking and uh what I want to do now is actually breaking down some of the different incentives among the player right because unlike traditional two-sided marketplaces where participants incentives often align pretty naturally um the reaking marketplace presents a very unique challenge where the incentives of stakers operators and services even to token holders can seem very uh desparate and sometimes even conflicting so we

must ensure that all participants incentives align and that many incentive parameters are transparent to everyone in the ecosystem in order for the marketplace to work as a whole right so if we're if we're breaking things down um stakers they probably have the most simplest incentives you know um they're basically driven by the pursuit of uh higher risk adjusted returns right um they are they aim to maximize their yield relatively to the risks they're they're taking and uh so they're constantly evaluating and balance between potential rewards and possibility of slashing or other penalties uh from these Services um and for the operators they

have a completely different set of uh priorities first you know they need uh visibilities to attract stakers uh very robust security measures to protect the assets as well as make sure the the services are running on on top of their machine are running smoothly and a very smooth onboarding process to reduce the friction from the both stakers as well as the services right and moreover I think operators uh seek Fair compensation for their work which is right now I would say missing in the current ecosystem this sort of fair compensation um is really kind of generated from the uh differences in terms of the hardware the managerial capacity the dev op

capabilities right an operator running a home PC versus a very elaborate sort of server Warehouse would definitely mean that they want they're seeking different levels of compensation right so um this diversity in operator profile um kind of adds another layer of the complexity of the ecosystem and really is the main driving force that we're going to be talk a lot about today which kind of give birth to the operator Quorum or operator sets design and finally you know the services what they face is perhaps the most challenging set of in incentives to balance because they are first grappling with the classic you know co-star

problem uh they need both Economic Security and a sufficient number of operators to function uh if uh effectively uh but attracting these resources is uh pretty difficult you know without an established track record and the services must design you know payout system uh to consider both their own token Revenue as well as um the revenue that they give out uh you know to properly reward uh the pretty diverse operators that we've we've already we've already said right and uh lastly we have also the you know the overarching need for Native token util

uh which is vital for the entire ecosystem's long-term viability and profitability right because right now people are essentially trading the economic security um with the their own na token utility right but without the strong token Utility Services May struggle to grow and remain sustainable and these token economy must be carefully designed to you know provide value to Holders while also serving the reaking systems functional needs so um so previously you know we've already mentioned uh briefly that uh all of the incentives um that we outline here are essentially coordinated um by these services and a lot of the value of

these services are actually generated by how well they coordinate they development with the entities of say stakers institutional um LPS or The Operators right right and this is also why sort of it's very expensive and inefficient um so the the reaking market is uh um you know the rece market is also very kind of difficult to realize uh unlike your traditional sort of online swaps because there are actually physical handoffs right you know actual software needs to be ran on physical hardware and tangible rewards need to be given out uh on a daily or even hourly

basis so it's more like your traditional Commodities Market where the handoffs are still happening today for example if you're exchanging oil right um so those also need to be considered when we are designing this uh Marketplace yeah so so so this is kind of like a brief overview of different entities and what they kind of want and they are all going to be boiling down to effectively uh how we're going to design this Market coordinated Marketplace and how we want to make sure the marketplace uh runs smoothly efficiently and minimizing sort of human intervention right um so today we're

probably not going to cover all of the tiny details of reaking but uh we are going to go pretty deep with the operator quorums or operator sets which personally I believe is um one of the most important or crucial aspect of of reaking uh system so if we are thinking basically from the first principles right how can we possibly cover or or make sure all of the participants in the ecosystem uh work as intended how can we orchestrate this experience and uh um orchestrate this Marketplace to make

sure that the information the asset and the the physical handoffs of software Hardware uh and the management of all of these going smoothly and this is where I think igen layer um really puts the initial Focus right right um you know given the challenge of coordinating all of these participants um they've chosen very wisely to prioritize building a very robust architecture to support these Services first and uh uh at the same time you know potentially leverage their reputation to attract initial liquidity or tvl uh to the protocol right so we'll probably put aside the liquidity aspect for now and those are

more like a business discussion and business strategy discussion and uh let's let's focus on uh you know the incentives of governing these um services and operator relationships um you know particularly with this operator Quorum design so you know we we earlier we talked about the siming conflicting incentives of different participants right operators seek Fair compensation that reflects their capabilities and resources and services conversely uh you know need a tiered network with diverse not types or service level agreements to meet their varied requirements right and the operators um Quorum setup pretty

elegantly addresses all of these needs and offering a very flexible uh framework that accommodates both operators and services uh in Nell really the the operator quum design allows services to experiment with various operator reward and slashing designs while this flexibility you know caters to diverse service requirements it also introduces pretty complex reward distribution as we'll see in a bit later um so to better grasp this concept you know consider each operator set as a very distinct SLA or node category similar to how a typical layer one blockchain or you know your rollup have

uh different types of notes right you have sequencers you have bundlers or whatever um um usually these Services also have a very very diverse types right and this tiered approach basically enables services to tailor their Network architecture to their specific needs and the ser systems complexity uh becomes evident when we consider that each Quorum has unique characteristics right as we shown over here to the left uh one service might have multiple operator quorums and uh within that operator quorums we have multiple operators and within that operator group we have multiple assets and multiple stakers um

and for the individual Quorum we also have SLA so it's a very nested um architecture right from a service uh perspective obviously this setup is ideal right um you know the operator can have different tiers of say we have three operator quorums for three different types of nodes and for operators it's also quite intuitive because then I can look at each operator quorums and see the requirements if I don't fulfill it I I don't join it um if I fulfill one Quorum I go into that Quorum right but what actually this this creates is extremely hard user experience for the stakers right uh and

uh you know the these these stakers um decision- making process is no longer you know as simple as choosing an operator based on reputation or promise returns these stakers actually now need to consider the specific quorums um an operator participates in and the unique risks and reward profiles of each Quorum and operators potential involvement in multiple abss right spreading the risks across different services and quorums by now you probably already feel like everything is entangled and hard to make sense of and this multi-dimensional risk assessment significantly you know complicates the staker's decision you know it's not no longer about evaluating um things in

isolation but basically every aspect interacts with each other within this Marketplace and you know the complexity introduced by the operat Quorum system really underscores the need for sophisticated tools and strategies we talked about to help stakers navigate this landscape right and uh um because we we potentially need several different types of roles to help not only stakers and operators to manage where their Stakes are going to um and uh but ultimately the the the point to drive home is that uh you know even though looking at a staker's perspective that

uh this is extremely convoluting and extremely hard to understand because of the layered um situation um they kind of underwent a very important process or important decision-making process from the reaking protocols that uh operator and service hand uh handoffs are being prioritized and that we reaking as a system can accommodate multiple variety of different services such da Oracle you know Cod processors each with different types of needs uh for their underlying Network and uh being able to have operators uh sufficiently supporting

these different variety type of networks so I want to kind of like show you guys a few of uh the operator quorums U and what the direct outcome of different uh the operator quorums right this one is from Igan da um which is actually the only sort of concrete examples of SLA and operative Quorum design although even being the first you know a lot of it isn't in effect still um there are still plenty to build um you know such as watchtowers for a variety of service types um operator data availabilities

and and more but what's already visible is the tier design for quorums right for example U over here you are really seeing two four types of different quorums each with different SL service level agreement attached to it um and while you're not actually being slashed as slashing is not available uh there is a force eject condition where um you know you know you stop earning rewards since you're not no longer operating or considered as a operator for this particular service uh in this case Ian da and for the operator tiers in in our case you know it is determined by um your stake um you know

uh your your share of Quorum stake and the eject criteria on the other hand are governed by you know your availability and uh you know and the direct sort of result of the operated Quorum uh is that I think this is kind of like often time misunderstood aspects of our current L reaking landscape is all of the assets seem to be the same right if I'm staking uh Native East if I'm staking uh igen if I'm staking you know even sort of stes those are all pretty much being treated equally um across the board but if we

dive very deep into the actual apy for each specific asset um and uh basically distilled from different operators that um this Igan da by the way uh igen DA has set up we've realized that um you know while Anor e only has a 0.03% concentration in the entire idda total stake it receives the highest API out of all of the quorums right all of the stakes and Native e and uh even the igen token on the hand currently receives no rewards right obviously right now the situation is a little bit skewed as most of the stakes are in there to to form points but you know

this kind of like just show you guys a very slice of um how Market is functioning or how operated quorums uh are generating rewards and it certainly doesn't treat all of the stakes equally and uh so you know the apy and ultimately the reward uh is is a function of a quorum right um the apy is really DET determined uh with the three factors that that uh youve madej your decisions on first obviously the service uh and second of all the operator quorums your delegated operators are opted in and operators

certainly play a kind of like a a major influence in this and it kind of decides which operator Quorum they want to be in at and finally the type of assets that you put into each operators so there's a chain effect similar to if you know like calculus there's like a chain rule right this is very similar thing that uh we we're looking at here each layer affects the next layer and ultimately affects your final reward distribution and those reward distribution can be night and day right if you put in the wrong asset into the wrong operator into the wrong Quorum and ultimately into the wrong service even though the service might generating

100% you know say a 100% of apy you might still get zero% at the end of the day right so this is why sort of the operator Quorum although being very NE collected at the current stage because of the complexity I would say and because of the sort of the nested nature of it extremely important for the actual users and uh I believe that you know we as an ecosystem should give it more attention um a as we sort of March further down the road in terms of where the ecosystem is going and uh I guess one final evidence is uh directly sort of coming down from

the operator Quorum and the the apy and the sort of the the the uh the diver the diversity of the apy for each different assets right what we are really seeing as a generalization um of the current state of the reaking marketplace is that um you know this mismatch of on this graph just the TV TBL the economic security and the apy indicates that the market is functioning very inefficiently right there should be a very positive correlation of your Economic Security and your API that you're generating

because you know you are rewarding uh in theory all of those tvl that are staked underneath you and you are as a service you should be actively managing exactly how much tvl that you have versus how much revenue that you generate for these TV but since we're not seeing that the only sort of reason behind it is that we are still at the current moment you know the Q4 of 2024 we're still looking at a very inefficient Market where lots of um you know significant amount of handholding uh and behind the scenes movement and Business Development work

occurring um that is not just being automate automated right not being handled by the so-called Invisible Hand of the marketplace so there are obviously still a long way to go in the future and uh uh and I have sort of basically a few ideas in terms of where we will be going right obviously the base case for reaking is um you know it functions as a very simple derivatives for your sort of Blue Chip assets and that can be it for reaking right obviously this is the very bare case uh for reaking itself but if we want to

really take reaking to where we want it to be as a ecosystem I think the four things um really needs to happen um in and uh you know to before that I think up until this point ion layer has done a pretty good job in terms of naturing and building out the protocol and ecosystem as a whole right um and we as a ecosystem Focus primarily on the engineering aspects U building out the core protocols ensuring the basic mechanisms of reaking works and onboarding initial services to test the system so on and so forth

um but uh I think um we are actually standing at a very interesting phase where um you know this phase signifies the change from being Builder Centric as a resing protocol to becoming Governor Centric to foster a marketplace right uh and the markets governance must begin um you know um to allow those so-called invisible hands and op um really the participants to make individual informed decisions right with decision making we can slowly start to see that the marketplace functioning as

intended uh and U aside of this sort of more broader aspect I think the first thing that we as an ecosystem needs to focus on is starting to establish the open standard um and data coordination right um you know data is the is the lifeblood of any market right it drives decisions transparency and competition right in the IG in the case of IG layer uh data becomes even more crucial just because of the sheer um decision making factors and coordination points across these participants operators services and stakers right without accurate and

openly accessible data similar to you know the apy data we actually just got to see from like a few weeks ago um you know nothing nothing can really function properly because people don't get access to the important you know parameters that informs their decision so the first I think and the the most important thing that we need to establish very quickly is actually uh the data right the open standard and the the implementation of the data systems and the second thing is really with the data you know we can then see open competition for revenue and

slashing uh up until now for the past maybe a year many services you know are technically being operated in something of like a incubated environment right it's protected it's nurtured it's allow to grow um there are ton of resources pouring into each um basically handholding them uh to to to grow up and while this is you know very necessary in the early stages of the reaking ecosystem and for those projects right uh I do think that it's time to start embracing open competition right we need to foster a more Dynamic and competitive ecosystem where Services can compete for revenue and slashing conditions and True

Value is really discovered through competition remember um from the very early slides that we talked about and without it we really won't identify the services and operators that brings the most value to the ecosystem um one area I think we need to be very cautious of continuing um to do is to baby these Services right allowing them to or even kind of conditions to allow them operate in a very protected environment I think as the market matures we really need to let the competition Thrive and this is how true innovation of value brought you brought forth

right um and the third thing which is uh I guess an observation uh instead of where we're going um is that specialization and the sophistication of different roles uh more specifically the tools and um assets for um strategy building for strategy um uh volts right are are going to emerge very soon um we are already seeing a lot of the emergence of more sophisticated roles within the ecosystem uh you know uh particularly around strategy management and much like how traditional markets have specialized Traders and um you know those asset allocators we'll see a rise

in you know potentially high frequency Traders strategy managers and other specialized participants within reaking as well right um and I think they are extremely important uh uh in the space so for this to happen we really need to provide the right tools and infrastructures to support these roles right now one of the key problem with our reating ecosystem is that everything is Diversified and everything is Chained right operator are simultaneously up into say 10 20 or even all of those Services because you know points are being given out uh by all of these services but um it's BAS basically

similar to how in a traditional stock market the only tool you have is ETFs instead of individual stocks right um so we re do really need to have a sort of some type of Base assets for these strategies to work with and we'll talk more about it as we go into um the specific sections where iig Explorer is is doing some of the initial exploration in in this regard and finally I think it's really the composability of reaking focus f right uh if we are reaking has been branded as many things right it is a derivative in itself it is a uh Launchpad for these services and it is

as we talk a lot about today is a marketplace right for decentralized services right and I I really do think that if we're taking from a markets perspective if we're taking from a decentralized Marketplace uh perspective you know it is crucial um for us as a ecosystem or as a community to start building uh composability right uh or to building on top of the reaking protocols uh and this is the only way that we can foster poster a positive change and the more efficient uh market exchange uh within the ecosystem the more sort of iy or or resty uh projects there is the

more liquidity that comes into the system and the more sort of um utility that goes all around right uh through the participants so up until now I think we've basically covered uh the the the broad aspect of raking and the tiny details of reaking right and uh now I want to talk a little bit about uh what we're doing and uh here at IG explor right um so basically for us we're we're we're focused on two important aspects the first is the data and the second is the composability of the ecosystem so we're currently largest reaking Focus

data provider for abs operators and stakers and we serve thousands of different parties accessing reaking participants data from tracking you know when our particular whale Staker delegated to an operator to you know monitoring the specific operator quorums and sets and their individual reward distributions often times people ask um you know why do you guys care about data so much because we really do think for a system like reaking data is the Cornerstone or the foundation of everything else right and uh um you know it's it's absolutely essential in terms of um the the the exchange of so many different participants in our system and

if you're familiar with say Ancient Rome or Greek history it's pretty comparable to how you know governments establish standards for silk or other Commodities and even money in the first place uh then to see the boom of the market uh um and eventually the the the prosperity of the nation right uh and in our language data is basically uh the equivalent of the standard that we have in the very very past and the second portion of our product is um essentially a defi component designed for resters uh aiming to improving Market usability um and exchange while fostering economic uh

ecosystem composability right we really do believe that you know choosing an operator although it's the correct sequence in the market exchange Loop uh is challenging for consumers right and uh just from the sheer number of decisions that you need to make um in in the ecosystem we believe that um we want to start with just the sort of the most basic needs from the stakers since it's the easiest to solve um and uh as mentioned earlier rest stakers primarily want to earn yield uh they do so by understanding the services in which they want to share risks right uh so we've designed a system uh called direct liquid reaking where users can

directly stake all of their state assets into one one abs and sharing only that ab's risk and rewards and we achiev this through a step that diversifies across operators uh uh and uh W with with a mechanism at we called service contribution threshold right which measures how user Stakes are being utilized or put at risk for a given ABS um and because of this constrainted risk and reward exposure other protocols can build on top of this to create more elaborate strategies so that protocols have a uh you know a stock like asset to work with instead of

um every single strategy making decisions uh needs to Source through all of the operator quorums Source through all of the um staking distrib automated basically automate that and diversify cross operator to completely mitigate those risks from the operator perspective and uh so to don't want to bore everyone with the just going over the list but really with this sort of um the the direct liquid reaking design what we want to achieve is that users as a Staker or institutional Staker they get you know direct exposure to an ABS

whether it's connection with that abs uh being a part of the community or in the sense of risk and reward right um and we do that with a much improved user experience by basically decreasing the number of decision making uh you need to do and second of all um this design really allows for a more elaborate Asset Management schemes to be built on top of igon layer or the other restating projects um basically you know strategy custodians and other II projects get a base asset to work with alongside with the isolated and accurate risk and reward profile

um yeah and that's what we are currently working on and we're super excited to see these a aspects slowly but surely I guess bring out to the daylight and uh uh seeing the entire sort of Market uh Wheels slowly to start cranking and uh personally I think we are we're very close um to that day and uh yeah so that's pretty much it about today's uh presentation I guess and for anyone interested this is our um website and feel free to check it out awesome Liam I mean that was a that was a fantastic overview of reaking um and and a deep dive into the I layer uh mechanism as well the market participants when it comes to stakers

operators and services um and the incentives that play for each of those uh I do have a couple questions but um I mean that that was a that was an awesome presentation so I think uh questions are probably pretty pretty quick here I want to jump back uh and basically share with you one thing that that I learned today that I'm not sure uh is common knowledge amongst the people in the industry which is uh is is this CP these couple of slides here so this slide Yep this one and uh and basically that we have um yeah so rewards are not created equal like this idea that I could be staking into a an ABS um but because the asset that I

stake is a little bit different or a different form of of eth or igen or different token different asset it doesn't receive the same sort of rewards from the prot from the from the ABS and so I think this this shows that there's an extra degree of choice or or uh decision that has to be made by the stakers so this this Choice coupled with all of the other choices that that are at play like you mentioned the operators the operator quorums you know most of the stakers right now are just delegating to the liquid reaking token they have right maybe just some uh some eth

uh you know they get easy eth they get swell eth they kind of uh stake their eth into these liquid liquid raking tokens and then all of those decisions are made on behalf of the Staker by the LRT Dow um they're allocating amongst the avss amongst the different assets um amongst the operators and and into the avss and so I'm curious about do you think that there's a paradigm shift here where right now in its current state stakers because you know there isn't a lot of information available stakers are currently just taking kind of the more convenient path and staking their eth in these lrts do you think as more data becomes available and you guys are

starting to help proliferate you know more information about the IG layer ecosystem but that it's publicly available do you think stakers will take more of that information to make make their own decisions about which ABS which asset which operators they stake into and they'll make more of those decisions themselves rather than delegating all of their eth to an LRT Dow and and entrusting the LRT with making the decision uh for them yeah um Robbie that's a excellent

question I think you know I think things are going to uh be a lot nuanced than this current two state that we have either you stake on IG layer dashboard by operator delegation without too much information right basically blindly trust I layer uh or these operators are going to make the best decisions for you or you go to lrts and let them handle everything right I think what's going to happen is you are going to see a stratified approach where the RO the role within the ecosystem is going to become very diverse right so you have

potentially uh a vertical Focus LRT right um that specifically helps you to uh make decisions for a particular sector for example da right because bear in mind not only the uh assets have are not created equal the services are not created equal and The Operators are not created equal right so we're we're we're really looking at a you know 4D chess right here for for the resters and what I think uh is going to happen is for a very sort of trained uh or or resters or institutions that knows

what they're looking at they're going to want tools that help them to make their individual uh individual choices because that's the way to maximize their earnings right and for your you know average Jo or someone doesn't want to really goes into every single aspect of it we will see for example um you know potentially just simply helping users to diversify across an operator which is something that we currently designed um into one specific ABS because that's kind of like a very logical Loop where I am the Staker I have the asset and I want to stake into a service just like

you use your Lio or you know um you stake into any other services uh where just making it more similar it's basically kind of like a app store where you can you can choose to stti in multiple Services instead of one right uh or you know um I know lots of uh there are lots of projects in emerging to create vertical specific uh strategies and uh uh you know very Deion um yield maximization strategy so basically the point is that I don't think right now right now it's a very black and white situation where you don't have many choices but eventually what we're going to see is the prolification and

specification uh or specialization of different uh degrees of management uh within the chain of marketplace right uh and as a consumer as a reaker um you'll have basically different flavored projects uh uh products that tailor to your your your liking makes total sense I I I think uh this is part of the maturation process of the igen layer protocol and reaking in general uh this is something that we're only just starting to see come to fruition and so it makes sense you know we start out very uh minimal degrees of freedom really only black and

white options and uh as it matures we'll continue to see more optionality uh for the participants to get involved so I I I think this was not only a great overview of how of how aan layer and reaking works today I think it is a great uh insight and foresight to uh into what's to come uh for aan L and reaking absolutely yeah I think uh you know personally I'm very bullish in terms of um the whole reaking ecosystem or the reaking narrative because um you know obviously like I said before we can go

very low as you know reaking is just a scam and it's another you know leverage products for eth uh or or BTC right uh or so right any you know arbitrary assets as a matter of fact but uh it could also mean a completely paradigm shift for uh you know decentralization for web 3 um in the sense that uh more services can actually be boost drafted um and uh uh be be shipped to the market uh whether it's application whether it's a middleware whether it's infrastructure it doesn't matter right and I I'm more inclined to believe that the ladder will

eventually Prevail um if we we kind of go towards that direction and certainly I think for us uh we are going to help shape out uh a significant portion uh of that uh equation and it's also not really just about igon layer right um reaking is a coordinated system of all of these participants right igon layer uh obviously initiated it and built the initial architecture for it but um so much work needs to be put into it and uh I really hope to see more people kind of jump into the wagon and uh and U start to see its potential y couldn't agree

more Liam thank you so much for coming on and uh thank you for your presentation yeah thank you Robbie really enjoyed this and hopefully we can catch up soon