Diva → Nektar Transition
TL;DR
- Nektar is not a merger, rebranding, nor extension
- Nektar Network builds on top of Diva Staking to facilitate decentralized restaking
- It expands rather than replaces Diva tech, enabling Ethereum security for other networks
- Operators and restakers earn rewards from both Diva and Nektar layers
- Both projects operate independently but support each other
According to the docs, Nektar Network is a multilayered restaking network built on top of Ethereum. The initial announcement also indicated that the Diva Staking protocol remains its core component facilitating interaction between stakers and operators. So how exactly are they related and how do they interact with each other?
Expansion, not Replacement
Building upon the foundation laid by Diva Staking, Nektar Network emerges not as a replacement but as an expansion of the stack, engineered to enable the repurposing of staked ETH for securing other networks or performing additional functions.
The liquid staking layer is simply an integral part of a larger restaking picture that collectively forms the Nektar Network:
At the same time, it can be used independently of the restaking layer. For example, an Operator can choose to provide validation services solely to Ethereum and never opt to perform such duties for other service providers. In this case, Diva will continue to function as the base validation layer.
Anyone can remain engaged with Diva Staking without needing to interact with the additional functionalities introduced by the broader Nektar Network.
Delegation is Key
The restaking workflow starts when Operators choose to perform additional duties for the benefit of third parties interested in leveraging Ethereum security. At the same time, Restakers delegate ETH to virtual validators, created by the underlying DVT-based network of operators. In the native restaking scenario, their withdrawal credentials automatically point to Nektar without requiring operators to do so manually.
Nektar is Good for Diva
When Operators accept staked assets and provide a range of actively validated services (AVSs), they receive rewards from both the staking and restaking layers, effectively leveraging Diva and Nektar technologies simultaneously.
Similarly, Restakers can opt-in to Nektar to complement their native or liquid staking by earning additional rewards from AVSs. The only caveat is that Nektar only supports Diva’s native liquid staking token (LST), generated within its ecosystem, and not external LSTs like stETH, rETH, etc.
Nektar is beneficial for Diva, because it allows additional opportunities for all the network participants, while preserving resilience and decentralization as key differentiators due to integrated DVT.
Distinct Moving Forward
Unlike Diva Staking, which is focused on Ethereum validation, Nektar Network is designed to address the needs of multiple AVSs through a decentralized restaking process. This distinction allows both projects to operate independently while supporting each other through shared resources, and benefiting from the overlap in team expertise.
Such a configuration enhances the effectiveness of interconnected yet autonomous Diva and Nektar without compromising their unique objectives.
