Introduction
Cygnus Omnichain Liquidity Validation System
Last updated
Cygnus Omnichain Liquidity Validation System
Last updated
Cygnus LVS is a decentralized security protocol that acts as a streamlined coordination layer, allowing network developers to autonomously manage and customize their staking or restaking mechanisms without requiring permission.
The protocol’s innovative and neutral design offers distinct advantages for network participants:
Networks have full control over their (re)staking implementation, managing all aspects such as supported collateral assets, node operator selection processes, reward structures, slashing protocols, and resolution mechanisms. Participants can seamlessly opt in and out of shared security frameworks coordinated through Cygnus.
With a permissionless, multi-asset, and network-agnostic approach, the protocol enables scalable and capital-efficient sourcing of economic security. Additionally, an evolving cross-network reputation system centered on operators will further optimize capital efficiency for network developers.
By employing non-upgradeable core contracts on Ethereum and TON, the protocol eliminates external governance risks and single points of failure. This straightforward yet adaptable contract design minimizes risks associated with the execution layer.
Cygnus is composed of five interconnected components. Each of these components works together to provide a secure, flexible, and efficient ecosystem:
In Cygnus, collaterals serve as the security foundation. It’s an abstraction that represents various underlying on-chain assets, agnostic to specific chains or asset types. This collateral can include any on-chain assets, without restrictions based on the blockchain they reside on.VaultsVaults form the (re)staking layer of Cygnus, managing the delegation of collateral to operators across networks. These vaults can be tailored by entities such as liquid (re)staking providers or institutional holders, and can delegate to operator-specific vaults.
Operators in Cygnus are the entities that manage the infrastructure of various networks. They are typically staking providers with a well-established presence across multiple networks. Cygnus' protocol registers these operators, allowing them to join networks and receive economic support from restakers via vaults.
Resolvers are tasked with approving or rejecting slashing penalties against operators on networks they service. They are agreed upon by vaults (the economic security providers) and the networks. Resolvers can be fully automated or operate as slashing committees and external dispute resolution frameworks, acting as neutral third parties to arbitrate penalties.
Networks in Cygnus are protocols requiring a decentralized group of node operators to offer trust-minimized services like decentralized transaction sequencing, consensus on off-chain data, or automation of protocol functions. Cygnus enables network creators to design, manage, and modify their methods for onboarding, incentivizing, and penalizing operators and collateral providers.
