5+ Yield Tiers for Preferred Node Operators
Restaking Cloud is inclusive of all validators including Eigenlayer, solo stakers, DVT, LST, and any other ETH validator client or infrastructure. For all of these validators and their node operators, Restaking Cloud is looking to increase the yield and quantity of the assets that they manage. This is why the team created Node Cloud.
Key Takeaways
- There are 5 layers of yield available to Preferred Node Operators in Restaking Cloud, and more could develop.
- Many of these yield tiers are passive while some require running additional services.
- As Preferred Node Operators build their reputations the amount of ETH delegations they receive could increase.
Where We Are
Currently, there are around 900k ETH validators staked. The more validators that are staked, the safer and more secure Ethereum becomes. Also, as more validators are staked, fewer rewards become available to each validator. This creates a need to keep enough incentives flowing to ensure that the Ethereum network becomes more secure.
Restaking Cloud is positioned to increase rewards as the number of validators increases by making Ethereum infinitely expandable through restaking. The result is keeping the consensus layer safe and protected from additional risks while simultaneously making the security of Ethereum reusable to other networks.
Node Operator Yield
Currently, node operators staking ETH receive yield in three ways. These are staking yield, MEV yield, and ETH delegations. Restaking Cloud follows this same model when creating yield opportunities for node operators. Below you can see the yield opportunities for node operators side by side. Many payouts in Restaking Cloud are in ETH. The payouts that involve ERC20 are optional.
5 Levels of Restaking Yield
Level #1 — Native Delegation or LST Restakers
By joining Restaking Cloud you access the ETH yield provided by networks looking to access the Restkaing Cloud. Because they pay on a yearly subscription, this could become a consistent and predictable yield similar to staking rewards.
Level #2 — Running Additional Services (Preferred Node Operators)
Not every network in Restaking Cloud will require node operators or validators (only their ETH). This is because Restaking Cloud is designed to be modular and offer scalable services beyond slashing as a penalty. If a node operator ops into these services they can receive additional ERC20s or ETH rewards from that particular network.
Level #3 — Delegations
If restakers who are not PNOs (LST or native delegation) want to access the revenue from additional services, they will have to delegate to a PNO. The PNO operates on their behalf similar to having somebody else run your ETH validator. Restakers pay PNOs 20% of all rewards for this service.
Level #4 — Reporter Software
This is a lightweight software anybody can run. It handles Staked Borrower Position (SBP) level slashing and pays in ETH.
Level #5 — Preferred Reporters
This is similar to Level #4 except it is specific to each network. It enforces slashing on PNOs. Nothing is stopping a PNO from operating as a Preferred Reporter as well.
Level #6–100
Keep in mind that K2 is Restaking Cloud’s first protocol. More opportunities are on the horizon for those who get involved early.
Looking Forward
Restaking Cloud is empowering the baselayer of Ethereum making it reusable for additional networks. This will create more incentives for validators while simultaneously encouraging decentralization. Those who stake validators can continue with their business while at the same time finding new revenue opportunities.
Follow Restaking Cloud:
Website |+| Twitter |+| Youtube
DISCLAIMER: The text above is just a description of how Restaking Cloud works in theory. Any figures mentioned serve only as an illustration. Engaging in any blockchain activities with or without the necessary skills or experience can result in a loss of funds. This is a very experimental tool, so please treat it as such.
Before participating please read the disclaimer here.
