From 0490819f2d9ba9b71f4aec43f9a5e281be21cd4d Mon Sep 17 00:00:00 2001 From: Bader Youssef Date: Tue, 4 Jul 2023 10:10:10 -0400 Subject: [PATCH 1/3] add page --- docs/learn/learn-comparisons-restaking.md | 8 ++++++++ polkadot-wiki/sidebars.js | 3 ++- 2 files changed, 10 insertions(+), 1 deletion(-) create mode 100644 docs/learn/learn-comparisons-restaking.md diff --git a/docs/learn/learn-comparisons-restaking.md b/docs/learn/learn-comparisons-restaking.md new file mode 100644 index 000000000000..bf0e75f38685 --- /dev/null +++ b/docs/learn/learn-comparisons-restaking.md @@ -0,0 +1,8 @@ +--- +id: learn-comparisons-restaking +title: Restaking vs. Polkadot Economic Security +sidebar_label: Restaking +description: Comparing restaking to Polkadot's native economic security. +keywords: [ethereum, Ethereum, eigenlayer] +slug: ../learn-comparisons-restaking +--- diff --git a/polkadot-wiki/sidebars.js b/polkadot-wiki/sidebars.js index c751709de016..a9ba0565d858 100644 --- a/polkadot-wiki/sidebars.js +++ b/polkadot-wiki/sidebars.js @@ -344,7 +344,8 @@ module.exports = { 'learn/learn-comparisons-cosmos', 'learn/learn-comparisons-avalanche', 'learn/learn-comparisons', - 'learn/learn-comparisons-rollups' + 'learn/learn-comparisons-rollups', + 'learn/learn-comparisons-restaking' ], }, "learn/learn-video-tutorials", From 44fe490ff4153acafdabae1cec44a3dd58d4e4f9 Mon Sep 17 00:00:00 2001 From: Bader Youssef Date: Wed, 12 Jul 2023 17:44:50 -0400 Subject: [PATCH 2/3] simple draft --- docs/learn/learn-comparisons-restaking.md | 55 +++++++++++++++++++++++ 1 file changed, 55 insertions(+) diff --git a/docs/learn/learn-comparisons-restaking.md b/docs/learn/learn-comparisons-restaking.md index bf0e75f38685..9259fce044ea 100644 --- a/docs/learn/learn-comparisons-restaking.md +++ b/docs/learn/learn-comparisons-restaking.md @@ -6,3 +6,58 @@ description: Comparing restaking to Polkadot's native economic security. keywords: [ethereum, Ethereum, eigenlayer] slug: ../learn-comparisons-restaking --- + +This comparison aims to compare the notion of **restaking**, an up-and-coming way to secure +decentralized layers built on top of Ethereum, to Polkadot's native economic security. EigenLayer +will be the primary subject of comparison to Polkadot, as its goals are similar. + +## A Quick Summary: Restaking + +Restaking's primary focus access to provide **pooled security**, where something like EigenLayer +will provide cryptoeconomic security for whoever builds on them. Through a series of derived assets, +backed by pools of staked ETH, different layers and dApps built using EigenLayer will have the +advantage of economic security without having to create and manage their own token. Effectively, +this solves the **bootstrap problem** that most new protocols face in the blockchain space. + +:::info What is the bootstrap problem? + +The bootstrap problem refers to the initial challenge most new protocols face: economic security. +When a new decentralized protocol is created, it often requires some unit of exchange (usually in +the form of a token) to deter adversaries from attempting to attack, as the cost of attacking the +protocol outweighs any potential gain. + +However, creating and managing a new token comes with a set of challenges - both technical and +legal, which is why having an available pool of economic security is appealing to new protocols. + +::: + +```mermaid +flowchart LR +a["Stake(ETH)"] --> b["Recieve(sETH)"] --> c["Restake(sETH)"] --> d["Service X"] +``` + +Where staking ETH secures Ethereum, restaking using a protocol like EigenLayer will allow a user to +allocate some amount of economic security to some Service X, which could be a bridge, layer two +system, or other (decentralized) layer that requires economic security. + +### Restaking vs. Liquid Staking + +Liquid Staking preserve liquidity through an LP token (liquidity provider). This LP token is +exchangeable one-to-one to the native token, but is usable for DeFi purposes. For example, a user +may stake 10 DOT natively, and the liquid staking protocol returns 10 lpDOT in return. The 10 lpDOT +can be used while my 10 DOT is staked. The conversation only occurs once. + +Restaking can occur twice - firstly with staked ETH, for example, then secondly to whichever service +it chooses to secure. + +## A Quick Summary: Polkadot Economic Security (NPoS) + +Polkadot's economic security is native to its protocol. Through NPoS, a series of nominators and +validators ensure the honest allocation of staked tokens and smooth propagation of any network state +transitions. This includes the security and availability of any parachains that have a registered +slot on Polkadot. + +```mermaid +flowchart LR +a["Stake(DOT)"] --> b["Secure X Services"] +``` From 5c7849e99f4738639af0c9bee11158a6e70f861b Mon Sep 17 00:00:00 2001 From: Bader Youssef Date: Wed, 19 Jul 2023 13:20:33 +0200 Subject: [PATCH 3/3] slight polish --- docs/learn/learn-comparisons-restaking.md | 17 ++++++++++++----- 1 file changed, 12 insertions(+), 5 deletions(-) diff --git a/docs/learn/learn-comparisons-restaking.md b/docs/learn/learn-comparisons-restaking.md index 9259fce044ea..e4bcf13872d3 100644 --- a/docs/learn/learn-comparisons-restaking.md +++ b/docs/learn/learn-comparisons-restaking.md @@ -26,8 +26,8 @@ When a new decentralized protocol is created, it often requires some unit of exc the form of a token) to deter adversaries from attempting to attack, as the cost of attacking the protocol outweighs any potential gain. -However, creating and managing a new token comes with a set of challenges - both technical and -legal, which is why having an available pool of economic security is appealing to new protocols. +Creating and managing a new token comes with a set of challenges - both technical and legal, which +is why having an available pool of economic security is appealing to new protocols. ::: @@ -43,9 +43,12 @@ system, or other (decentralized) layer that requires economic security. ### Restaking vs. Liquid Staking Liquid Staking preserve liquidity through an LP token (liquidity provider). This LP token is -exchangeable one-to-one to the native token, but is usable for DeFi purposes. For example, a user -may stake 10 DOT natively, and the liquid staking protocol returns 10 lpDOT in return. The 10 lpDOT -can be used while my 10 DOT is staked. The conversation only occurs once. +exchangeable one-to-one to the native token, but is usable for DeFi purposes (usually in a +decentralized exchange, or DEX). + +The conversion for liquid staking can only occur once. For example,a user may stake 10 DOT natively, +and the liquid staking protocol returns 10 lpDOT in return. The 10 lpDOT can be used while my 10 DOT +is staked. Restaking can occur twice - firstly with staked ETH, for example, then secondly to whichever service it chooses to secure. @@ -61,3 +64,7 @@ slot on Polkadot. flowchart LR a["Stake(DOT)"] --> b["Secure X Services"] ``` + +Polkadot also has a series of secondary availability and validity checks on candidate blocks before +going through the finality process with [GRANDPA](../general/glossary.md#grandpa-finality-gadget). +These checks contribute in ensuring that validators are behaving, and are slashed accordingly.