jakiro
Article Author: Larry Sukernik, Myles O’Neil Article Compilation: Block Unicorn
“If you can see yourself through my eyes,” Demat Kennedy “Lost”
We spent a lot of time studying and re -pledge agreements in REVERIE. This field is very attractive to us because it is full of uncertainty (opportunities often exist in blurred markets), and the development is very active (12 in the future 12 (the next 12 will be 12 in the futureDuring the month, dozens of projects will be launched in the field of repaying).
In the process of re -pledge work, we have some observations of the future development of the re -pledge market.Many cases are emerging, so today’s truth may not be applicable tomorrow.Nonetheless, we still want to share some preliminary observations of our pledged market dynamics.
LRT as a leverage support
Today, LRT (liquidity reinsurance tokens) like Etherfi/Renzo occupies a strong position in the pledged supply chain: because they are close to the supply side (pledged) and the demand side (AVS, referring to refersActive verification services), they are in the favorable position of both parties.In this way, the LRT (liquidity reinsurance tokens) has the following capabilities: (i) determines their punch proportions, and (ii) affects the proportion of the basic market (such as Eigenlayer, Symbiotic).Given their strong status, we can expect the pledge market to launch a first -party LRT to control the power of third -party LRT.
AVS/Re -Purer as a leverage support
There are two characteristics of the best market in the world: decentralized supply and decentralized demand.To understand this intuitively, it will help reflect on the opposite situation of the supply side or demand side (or two) concentration (AVS refers to active verification nodes).
Imagine a simple Apple trading market
Suppose there is a simple market for trading Apple, the largest Apple seller controls more than 50%of Apple supply.In this case, if the market operator decides to increase the market from 5%to 10%, the large apple sellers may threaten the business to other places.
Similarly, at the demand side, if the largest Apple buyer controls more than 50%of Apple demand, she can also threaten to use other markets (or buy directly from Apple suppliers).If you are.
Back to the re -pledge market
If the final market structure of the re -pledged market is concentrated in the AVS end (the top 10%of AVS accounts for more than 50%) or the re -pledged side (the top 10%of the re -pledges accounts for more than 50%of the deposit)As a result, the ability of the market itself will weaken (therefore, the market valuation should also be reduced).
Although there are currently not enough data to strictly verify this, our intuition is that the distribution of power law will also be applicable here: large AVS will occupy most of the total payment volume, giving them the bargaining ability to the market.
Fight for exclusive AVS
From the perspective of pledged markets, anything that can be done by competitors cannot be tried.The easiest way to differentiate is to provide exclusive AVS access opportunities for re -pledges -whether it is a first -party AVS like EIGENDA or a third -party AVS obtained through exclusive partnerships.This is similar to Sony’s development of PS5 exclusive games to promote hardware sales.
In view of these developments, we expect that the market will take some actions, such as launching more first -party AVSs, or reaching an exclusive agreement with third -party AVS.In short, we will see the battle for AVS in the next few months.
AVS subsidy
AVS needs to pay the service fee provided by operators/citizers, which actually means that AVS needs to prepare to pay their local tokens, ETH/USDC, or may be points/future airdrops.Having said that, because most AVS currently has an early start -up company without tokens, no large balance sheet, or a good design/airdrop, signing a contract with the operator/rebate is a tedious process (Most EIGENLAYER partnerships are customized contracts in private).
In short, this is a customer who wants to buy services. It may be good in funding, but there is no enough funding.
In order to promote business development, the pledge market is likely to pay the initial funds to operators/re -pledges in advance. These funds can use their local token, balance sheet assets, or issue “cloud accumulation” to allow AVS/Consumption of the pledged person to pay.As a return on the prepaid funding, it is expected that AVS will promise to pledge the pledged market airdrop or distribute tokens.Or, the pledge market can pay this money prepaid to AVS to persuade them to choose themselves rather than a competitor’s re -pledge market.
In short, we expect that in the next 12 to 24 months, the pledge market will be pledged fiercely through subsidized AVS expenditures.Similar to the market developments of Uber and Lyft, it may eventually win the re -pledge market with the most funds/tokens.
Personalized guidance
From “I want to start a AVS” to actual investment in production, it is not as simple as it looks like, especially for small teams without many R & D resources.The problems that the team needs to solve includes how much safety, how long the purchase of the purchase, how much the cost of the payment operator/the pledker, what should be used to punish, and how much punishment?
The best practice will eventually appear, but before that, the pledge market will need to guide the AVS team through these issues (it is worth noting that Eigenlayer has not paid or punish the mechanism).
To this end, we expect that the rebuilding market will be similar to the company’s sales business, providing customers with personalized integrated/service help, so that they can access the products smoothly.
The development of AVS
The most successful AVS may gradually be separated from the pledge market and start using its own tokens or income to buy security.Today, the incentives of the pledge market are the most important for projects with small scale. These projects do not have enough time, funds, brands, or connections to recruit a validator collection.However, with the expansion of the project scale, these projects may turn to their own recruitment verifications and use their more valuable tokens to ensure the security of the network.This situation is similar to the stage of market development. The most successful customers are gradually developing independently, and market operators need to prepare for this.
One -stop service of encrypted SaaS
In order to explain this observation, let’s first understand some software history: cloud service providers like AWS enable developers to easily access everything they need to start applications or network services (for example, custody, storage and calculation)EssenceBy significantly reduced the cost and time required for development software, a more professional network service has appeared.Cloud service providers combined with a large number of “microservices” provided by the first cloud service and the platform to make it a one -stop service provider you need in addition to core business logic.
The re -pledge market like Eigenlayer aims to create a series of similar microservices for Web3.For example, before Eigenlayer, encrypted microservices can fully centralize its offline components (and pass this risk to its customers), or take the cost of guiding a group of operators and economic shares to buy security costs.
The pledge market may break the trade -off of this microservices -if you work as expected, you will be able to give priority to security without sacrificing costs and market speed.
Suppose you are developing a cheap, high-performance ZK-Rollup.If you go to the re -pledge market like Eigenlayer, you will have multiple core service options such as DA and bridges to easily access.Through this process, you will see dozens of other AVS microservices, you can integrate with it.
The more microservices provided by the pledge market, the better for the customer’s experience -no longer need to evaluate the service characteristics and security of dozens of independent suppliers. Applications will be able to buy all the services required from one pledge marketEssenceTherefore, the user may come because of the X service, but it is left because of the Y and Z service.
Some AVS will have a network effect (for example, Preconfs/Pre -configuration)
So far, the re -pledged examples are mainly concentrated in the export of verifications and economic share exporting Ethereum.However, there are another type of “introverted” recreation cases that can be used to increase the consensus increase function of Ethereum without changing the protocol.
This idea is very simple -allowing verifications to choose additional commitments on the proposed block in exchange for payment and account for accountability by punishment, if they do not fulfill these commitments.We suspect that there are only a few types of commitment types that have sufficient needs and can attract high -level participation, but the value of flowing through these commitments may be huge.
Unlike the “external” re -pledged examples, the effectiveness of such use cases is directly related to the participation of the verifications.In other words, even if you are willing to pay to be included in a block, but if only one of the only one of the verifications chooses to obey the promise, then this is not much useful.
However, if each verificationer chooses a given promise, the guarantee behind it will be equivalent to the guarantee (that is, effective block) provided by the Ethereum agreement itself.According to this logic, we can expect that this category has a strong network effect, because AVS users will benefit from the marginal authenticants who promise the promise market.
Although this AVS category is still in the early stages, the logical distribution channels that promote these use cases may be through the Ethereum client auxiliary tools and plugins (for example, Reth).Similar to the separation of the proposal and the builder, it seems that the proposal is likely to outsourcing the outsourcing work to a specialized participant in exchange for income share.
What is unclear is what form these AVS will show.Although a entity may create a general market for any type of commitment, we suspect that it is more likely to see some of the sources of demand (for example, the demand for L2 and L1 DEFI driver for interoperability)Participants appear.
