Eden Network’s Liquid Staking Infrastructure Explained

As the launch of Eden Network’s new Avalanche liquid staking product is just around the corner, we’d like to provide the community some insight into the infrastructure stack and the services we’re providing our partners; so let’s dive into exactly where Eden Network’s products fit in with the Geode Finance and Yield Yak partnership.

First, let’s talk about the elephant in the room — when the phrase “core infrastructure tooling” is uttered, the average person starts to switch off. What is often missed is that optimized core infrastructure tooling is paramount to driving blockchain security, TVL and ultimately user growth.

This is achieved by optimizing transaction execution for the end user (e.g. transaction ordering) or maximizing yield and unlocking TVL/aligning incentives for DeFi (e.g. liquid staking).

Better transactions and higher yields create a flywheel effect by providing a more compelling user experience that drives L1 user growth, resulting in more inflow of TVL, resulting in better blockchain security and more dev mindshare due to the opportunity being created.

Our goals when building this infrastructure were to create an efficient and flexible system that would allow us to optimize user yield via our unique yield generation engine, and effortlessly expand onto other PoS blockchains in the future.

Each aspect of the infrastructure was designed with the above goals in mind and represents years of experience, research and learnings by the core development team.

Note that this flowchart focuses on Eden Network’s functions in the liquid staking partnership. It only lightly covers the pivotal roles that Yield Yak and Geode play (e.g. we didn’t include the yyAVAX flow). In reality, their technology is remarkably advanced and absolutely crucial to our success.

Infrastructure Explained

Our infrastructure links to the product front-end, operated by Yield Yak on the Avalanche C-Chain, to the core liquid staking tooling on the P-Chain, operated by Eden. In a nutshell, Eden Network is responsible for using AVAX staked on Yield Yak to run validator nodes on Avalanche.

All yield generated through these nodes makes its way back to the delegator/staker, and delegators that choose to stake via Yield Yak will receive amplified yield thanks to Eden’s unique value generative products, resulting in the best long term yields available to users through liquid staking.

Amplified Yield

Eden Network’s amplified yield comes from the aforementioned yield generation engine, which leverages core infrastructure and bespoke strategies to provide additional yield on top of default staking rewards. We covered this briefly in a previous blog post.

Ultimately this will ensure that any validator managed by the network will output the highest long term sustainable user yield on the market (although we have no control if a competing solution throws money at a short term loss leader promotion).

Peg Maintenance

In conjunction with third-party market makers and arbitrageurs, the Eden Network liquid staking API will operate a mechanism to maintain the yyAVAX peg. We believe our approach to this maintenance is unique in the Avalanche liquid staking space.

Next Steps

Infrastructure testing has been ongoing and we are confident the design is robust and close to production ready. In conjunction with Yield Yak and Geode Finance, we can’t wait to introduce you to yyAVAX and bring you what we believe will be the best liquid staking product on the market.

Follow us on Twitter and join the conversation on Discord to be first to hear about the impending launch.