Curated Node Operator Selection: InceptionLRT’s approach for Optimal AVS Strategies

June 14, 2024
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Most protocols in the EigenLayer ecosystem are still unsure about how they will interact with smart contracts, debating whether to select Node Operators or AVSs to generate Restaking yield. InceptionLRT has a clear vision for its future. By not directly picking Actively Validated Services (AVSs), InceptionLRT optimizes its restaking operations in order to maximize rewards while maintaining a robust security and efficiency.

This strategic choice streamlines users' restaking process, ensuring the best results. This post explores the distinctive aspects of InceptionLRT’s approach to selecting AVSs, shedding light on its implications for Restakers and the broader Ethereum network.

Understanding EigenLayer and AVSs

EigenLayer introduces the possibility of restaking to Ethereum, enabling users to use their ETH or corresponding Liquid Staking tokens to secure multiple services simultaneously. This way, EigenLayer serves as a marketplace for decentralized trust, allowing various services to be validated and managed in a decentralized manner.

unnamed.png EigenLayer Architecture (Source)

The core components of EigenLayer include Actively Validated Services (AVSs) and EigenLayer Node Operators:

  • Node Operators: These entities serve as the infrastructure for EigenLayer, being in charge of maintaining the network by validating transactions and safeguarding the Network. They play a vital role not only in ensuring integrity and performance, but by guaranteeing the validation operations of AVSs.

  • Actively Validated Services (AVSs): AVSs are specialized services provided by node operators that actively manage decentralized operations. These operations, whether they are sidechains, oracle networks, or other decentralized applications, leverage the pooled security provided by EigenLayer to ensure their integrity and trustworthiness​.

Check out our most recent blogpost giving an overview of the current AVS Landscape on EigenLayer:

-> The EigenLayer AVS Landscape: A Complete Overview

Delegating to AVSs through EigenLayer

With the launch of EigenLayer's mainnet, a significant advancement was the possibility of delegating a restaked position to an Operator of a users choice. This allows restakers to specifically delegate to an operator that has opted into a specific AVS or a group of AVSs, giving users the possibility to contribute to an AVS or set of AVSs of their liking. This feature aims at optimizing the alignment of restakers' interests with specific services​.

unnamed.png Top 6 AVSs in on EigenLayer by TVL (Source)

AVS contributions through specific Node Operator delegation, promotes transparency and control for Restakers. This feature allows Restakers to select AVSs that match their risk profiles and potential for higher rewards. The double opt-in process ensures mutual agreement between restakers and AVSs, fostering a cooperative environment.

InceptionLRT's Strategy: Curated Node Operator Selection

Unlike many other protocols that have embraced direct AVS selection through specific operator delegation, InceptionLRT has chosen a different path. It employs a tailored node operator selection strategy that optimizes the delegation process. This approach allows InceptionLRT to leverage the best available resources, ensuring the best possible AVS strategies are deployed.

Here’s why this strategy is beneficial:

Optimized AVS Strategy

Curated Node Operators are picked based on their ability to implement the most effective AVS strategies. This ensures that Restaked assets receive optimal validation services without InceptionLRT having the need to create these capabilities itself.

Diversification

This method allows InceptionLRT to cooperate with numerous Node Operators, increasing diversification and minimizing reliance on any singular Operator. This diversification decreases risks and increases the overall stability of the Restaking process.

Reliability

By Curating Node Operators, InceptionLRT ensures that only the most reliable Node Operators manage the Restaked Assets. This reduces the risk associated with less experienced and underperforming operators.

This strategic choice is based on selecting node operators who are best suited to maximize returns and security for their users, rather than allowing users to pick certain AVSs directly. This approach is aimed at reducing complexity and improving the efficiency of the Restaking procedures.

Offering the Optimal AVS Selection

InceptionLRT's approach within the EigenLayer ecosystem showcases its commitment to maximizing user returns while maintaining high-security standards. By carefully choosing the most beneficial node operators instead of enabling direct AVS selection, we optimize financial rewards for our users while simplifying the user experience.

We invite everyone to experiment with our vast restaking services and take advantage of our thorough selection of AVSs:

-> Restake with InceptionLRT

For more detailed information on EigenLayer and AVS, you can explore the EigenLayer documentation offering an overview of AVS.