RA & Operators Selection
These were the original designs for LRTs, but this architecture is currently on hold since the restaking platforms it depends on are not yet mature enough to support such structured products. This shift inspired the creation of MAX LRTs, which fulfill the original vision.
For an in-depth look at what "Restaking Unlocked: The Next Evolution in DeFi Yield" truly means and how YieldNest envisions it, check out our collaborative research with Llama Risk:
🔗 Beyond Shared Security: The Evolving Role of Restaking in DeFi
Clarification:
Terms like AVSs (Active Validated Services), Networks, and DSSs (Distributed Secure Services) are collectively referred to as restake applications (RAs). RAs are applications that run on restaking protocols, offering these applications modular security via the shared security of an underlying blockchain and utilizing its settlement guarantees and assets. These restaking platforms or protocols use restaked assets to underwrite risks, ensure task correctness, or provide economic security for the RAs.
YieldNest is a top liquid restaking protocol that manages and optimizes yield for restaked assets across the best restaking protocols. Our first step is to select the best Active Validators Services (AVSs) and operators for EigenLayer. After that, we will expand to other protocols and create a comprehensive risk framework for restaked assets.
We have found that YieldNest is one of the few liquid restaking protocols that thoroughly analyzes risk. This means we are well-prepared for slashing conditions when they occur. Below, we outline our initial AVS screening and node operator methodology, which we've used in the absence of slashing conditions for our first nLRT, ynETH. This methodology will guide our strategic decisions during these early stages and establish the credibility of our initial operator and AVS selections.
We provide a brief overview of AVSs currently active on EigenLayer, which you can reference for an initial review of YieldNest's AVS exposure. Additionally, we evaluate professional node operators under consideration for onboarding and describe the due diligence process involved in selecting operator exposures.
We plan to conduct an in-depth risk assessment of the most promising AVSs. This will help YieldNest fine-tune its AVS selection and optimize risk exposure when slashing conditions are introduced. For an example of our upcoming AVS risk analyses, see our EigenDA AVS Risk Assessment.
Finally, we offer a collection of YieldNest Risk AVS briefs. These briefs provide an initial vetting of available AVSs and form a key part of YieldNest's initial AVS exposure strategy, ensuring a well-informed approach to managing AVSs.
See here a list of YieldNest Risk Node Operator assessments. These operators are intended to make up the initial white label operator partners and are expected to grow over time:
Validation Cloud (Report coming soon)
P2P (report coming soon)
We are also in talks with Google, T-Mobile, Figment, Nethermind, and Everstake.
To read the full article on the initial AVS and operator selection, please check out our governance forum here: Memorandum on YieldNest Initial AVS & Operator Selection.
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