Uncharted Territory Ahead: Why Restaking Needs Modularity - TOKEN2049 Dubai 2024
In the dynamic and evolving landscape of cryptocurrency, understanding the complexities and necessities of modularity in "restaking" protocols is crucial. In his insightful talk at TOKEN2049 Dubai 2024, Mohak Agarwal, Founder and CEO of ClayStack, explores why modularity is becoming essential in the realm of restaking. With a background as an investment manager in Web3 and experience managing staking services with over $200 million in assets, Agarwal is well-placed to discuss this cutting-edge topic.
He begins by unpacking the anatomy of liquid staking, identifying its elements and emphasizing the rapid growth and high total value locked in recent protocols. He explains the critical role layers such as the staking and restaking layers, validator selection, and the importance of diversity and security in validators play to ensure network integrity.
Agarwal emphasizes the necessity of modular architecture for liquid staking, highlighting how it allows protocols to remain secure and agile in a fast-paced environment. The architecture's complexity is evident, needing to integrate various components such as distributed validator technology (DVT), validator funding providers (VFPs), and cross-chain layering. Modularity ensures isolated upgrades without affecting the core protocol, providing flexibility to adapt and implement necessary updates rapidly.
In an industry where security is paramount, Agarwal stresses the need for modular architectures to prevent potential hacks in a landscape where liquid staking has remarkably remained unhacked. As new competitors and technologies emerge, the ability to upgrade independently within a modular framework becomes a significant advantage.
For those interested in the future and integration of restaking, Mohak Agarwal’s comprehensive talk sheds much-needed light on these critical technological advancements.
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