What are the 4 components of Nektar Network?
Nektar has four layers that extend cryptoeconomic security of the Ethereum network to additional applications: The Stinger Client, The Diva Staking Protocol, the Nektar Restaking Protocol and the Nektar’s Marketplace. Let’s explore them in details:
The Stinger Client:
It’s a binary run locally by operators, effectively creating a p2p validation network. Also called the Diva Client. The current testnet version supports:
- ✅ Creation of validators with automatic DKG, no manual key management
- ✅ Fulfilling validator duties using DVT
- 🔜 Validator Withdrawals
- 🔜 ZK Oracles to calculate rewards
- 🔜 Operator collateral and rewards management
- 🔜 MEV support
The current testnet supports the creation of distributed validators, but no withdrawals (which will be enabled in the next testnet version).
The Diva Staking Protocol:
Diva Staking is a liquid staking protocol powered by DVT. It introduces innovative functionality for both Stakers and Operators, reshaping the landscape of Ethereum staking.
Diva’s Core Features:
- Liquid Staking: Diva offers Liquid Staking Tokens (divETH), providing Stakers with the flexibility to stake any amount of ETH without lockups. These tokens represent staked ETH and generate Ethereum staking rewards, ensuring maximum liquidity and accessibility.
- Resilient Operations: With Diva, Operators run Distributed Validation nodes that are fully disposable and self-healing with as low as 1 ETH. This architecture ensures exceptional uptime and resilience, with redundant fallbacks provided by DVT technology, enhancing network reliability.
- Key Testnet Statistics: Diva boasts a robust network infrastructure, with 284 operators running 582 validators, ensuring the decentralization and security of the platform. This highly decentralized set of operators form the basis for Nektar Network. Stay tuned for the mainnet launch!
Learn more about Diva Staking by watching this video of Prada, co-founder and CTO of Nektar Network and read our docs.
The Nektar Restaking Protocol:
The Nektar Restaking Protocol consists of a set of smart contracts that empower stakers to restake Diva’s Liquid Staking Tokens (LST) and ETH directly within the Nektar Network. This functionality allows stakers to delegate ETH to validators, who can undertake additional responsibilities to serve the interests of external parties seeking to utilize Ethereum’s security, such as Active Validation Services (AVSs).
At its core, Nektar Network functions through several interconnected agents, each serving a distinct purpose in enhancing Ethereum’s security and scalability:
- Actively Validated Services (AVS): These services leverage Nektar’s pooled security, tapping into Ethereum’s trust model to provide high-trust solutions for applications. AVSs play a pivotal role in bootstrapping new PoS-based distributed systems. Are you building an early-stage protocol? Do you need to bootstrap your security? Apply as AVS!
- Restakers: Participants in Nektar can opt-in to complement their staking endeavors by earning additional rewards from AVSs. This mechanism fosters a symbiotic relationship between stakeholders and service providers.
- Operators: Operators form the backbone of Nektar’s infrastructure, registering to accept staked assets delegated by restakers. They provide a range of services to AVSs, contributing to the network’s security and integrity.
What’s the main difference with other restaking platforms?
Centralization poses a significant threat to distributed networks, undermining their fundamental principles. Nektar distinguishes itself by offering a resilient, decentralized solution through Distributed Validator Technology (DVT). This approach ensures that the network remains robust, resilient, and resistant to single points of failure.
From a restaker point of view the Nektar Network offers one of the most resilient restaking mechanisms in the market while for an AVS, it’s an extremely convenient cost efficient way to access a set of operators whose performance and reliability can be assessed through their participation in the Diva Staking protocol.
Nektar’s Marketplace:
Nektar functions as an open, flexible marketplace where trust is decentralized. Within this ecosystem:
- Consensus security can be delegated.
- It capitalizes on Ethereum’s security
- Trust is established between AVS and dApps.
Developers can access security from a collective staking pool, while stakers can help project growth through restaking. Ensuring trust and security for AVSs mandates users to restake their ETH.
