Key Terms
YieldNest Key Terms
MAX LRTs
MAX LRTs are AI-driven, composable restaking assets that unify multiple yield sources into a single, capital-efficient token. These assets dynamically rebalance funds across multiple LRT Strategies, optimizing risk-adjusted returns while maintaining Layer 1 settlement assurances. They serve as the top-level vaults, allocating capital across underlying LRT Strategies for optimal performance.
LRT Strategies
LRT Strategies are the underlying yield-generating mechanisms powering MAX LRTs. While MAX LRTs aggregate multiple strategies, some LRT Strategies can be accessed in isolation via a public interface, giving advanced users direct exposure to a specific yield model.
Better Risk Management: MAX LRTs allocate funds dynamically, allowing for tailored risk-adjusted strategies.
Isolated Exposure: Some LRT Strategies offer standalone access for users seeking exposure to specific opportunities.
Fee Structure: Fees are only charged at the strategy level, ensuring MAX LRTs remain fee-free.
Restaking & Shared Security Protocol Terms
Curated RA Baskets
A dynamically curated basket that provides balanced exposure to pre-selected Isolated RA Categories. These baskets ensure diversification across multiple restake applications (RAs) by selecting specialized node operators for optimized security and yield.
Isolated RA Categories
A focused approach to RA restaking, where node operators only validate specific RAs, maximizing potential rewards while mitigating risk. The YieldNest Strategy Manager, governed by the YieldNest DAO, ensures optimal allocation within these isolated restaking strategies.
Restake Application (RA)
Any system that requires distributed validation and pooled cryptoeconomic security, including:
Sidechains
Data availability layers
New virtual machines
Keeper networks
Oracle networks
Bridges
Threshold cryptography schemes
Trusted execution environments
RA Developer
A development team that builds and maintains an RA service.
Cryptoeconomic Security
A security model that leverages economic incentives and cryptographic verification to ensure network integrity and proper function.
Delegation in Shared Security Protocols
Restakers delegate their assets to third-party operators, who run off-chain service modules instead of operating software themselves.
Operator
Entities that register in a shared security protocol, secure restaked assets, and validate RAs. Operators can accept delegated stakes and opt into specific RA services.
Restaking
A mechanism where Ethereum stakers reuse their staked ETH or LSTs to provide additional security to RAs. Stakers delegate capital to Operators in exchange for restaking rewards.
LST Restaking
A restaking method where LST holders transfer their Liquid Staking Tokens (LSTs) into a shared security protocol.
Native Restaking
A restaking approach where Ethereum stakers natively restake ETH by redirecting withdrawal credentials to a shared security protocol.
On-Chain Slashing Contract
A contract that enforces penalties on operators for misbehavior, maintaining RA integrity.
Pooled Security via Restaking
A security model where multiple parties combine restaked ETH/LSTs to provide modular security to multiple RAs.
Quorum & Quorum Threshold
Quorum: A grouping of strategies used by an RA for security enforcement.
Quorum Threshold: The minimum stake percentage and operator responses required to maintain quorum security.
Restaker
An individual who restakes native ETH or LSTs into a shared security protocol.
Restaking Points
A metric used to measure restaking contributions, calculated in ETH per second.
Stake
The ETH amount delegated to the current set of Operators.
Security & Risk Management in MAX LRTs
Guard Validation Engine
The Guard Validation Engine secures MAX LRT transactions by:
Enforcing whitelist-based rule execution to prevent unauthorized actions.
Identifying risks in real time using AI-driven monitoring.
Ensuring strict access control, customizable validation logic, and fail-safe transaction processing.
HyperNative Threat Detection
MAX LRTs integrate HyperNative's security monitoring, which:
Detects protocol risks, threats, and anomalies in real time.
Triggers automated mitigation mechanisms before threats materialize.
Ensures continuous security optimization across all active strategies.
Automated Rebalancing & Exit Liquidity
Dynamic asset reallocation optimizes capital efficiency.
On-chain liquidity buffers ensure frictionless exits, even in volatile conditions.
Automated incident response ejects at-risk assets from compromised strategies.
YieldNest Product & Governance Terms
YieldNest DAO
The governing entity responsible for allocating funds, managing strategies, and evolving MAX LRTs over time. As governance decentralizes, each MAX LRT will transition into a SubDAO, allowing for independent strategy management.
SubDAO
A governance entity that manages a specific MAX LRT, enabling:
Independent parameter adjustments based on market conditions.
Strategic risk assessments and integrations.
AI-assisted voting mechanisms for governance.
YieldNest Strategy Manager
A modular framework that dynamically optimizes capital deployment across:
Restaking strategies
DeFi integrations
Liquidity provisioning models
Buffer Strategy
An ERC-4626-compliant liquidity reserve ensuring:
Instant access to liquidity for withdrawals
Efficient capital deployment across DeFi & restaking
Withdrawals in Shared Security Protocols
Full Withdrawals: Withdraw 32 ETH principal + staking rewards.
Partial Withdrawals: Withdraw staking rewards only, maintaining principal in restaking.
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