Decentralized ETH Staking

The Blox Ecosystem
The Blox Ecosystem

The Vision

Power the decentralized ETH staking economy by making Eth2 staking accessible to all.

Decentralized Eth2 staking services refer to platforms that in no way retain control over private validator keys and private withdrawal keys. Effectively, providing a service that alleviates the technical and monetary barriers to entry for Eth2 staking, without assuming custody over its users’ assets.

We believe that Ethereum should remain decentralized, and that centralized services go against the very foundation of the Ethereum network and blockchain technology at large. Hence, at every level, the Blox Ecosystem has been designed with trustless principals in mind.

The Components

The Blox Ecosystem consists of:

  1. Blox Staking
  2. Blox Decentralized Staking Pools
    • Pool Stakers
    • Block Producers
    • CDT Stakers / The CDT Vault
  3. Blox Native Token – CDT

Blox Staking

Blox Staking is an open-source, fully non-custodial staking platform for Eth2. Users can easily activate one or many validators on the Eth2 testnet and Beacon Chain using Blox Staking – while maintaining custody over both private validator and withdrawal keys.

The Blox Ecosystem

The platform consists of three main components, Blox Live, KeyVault, & Infra.

The Blox Ecosystem

Blox Live is a Desktop application which grants a user management and monitoring access to one or multiple validators.

KeyVault is an individualized remote signing server powered by Hashicorp Vault in which validator keys are securely stored and which features a proprietary plugin for signing functionalities, slashing protection.

Blox Infra is a cluster of validators, Beacon Chain and Eth1 nodes which efficiently transmit duties from the blockchain to the user’s KeyVault remote signer for execution.

Learn more about Blox Staking

Blox Decentralized Staking Pools

The Blox Ecosystem

A decentralized staking network, the Pools Blockchain makes Decentralized Staking Pools a reality for Ethereum 2.0. The protocol allows stakers to overcome 2 major Eth2 staking hurdles; the first, removing the minimum 32 ETH threshold required to stake and the second, affording the staker instant liquidity of funds.

Each staking pool on the network is based on Secret Shared Validator (SSV) technology whereby a validator key is split into multiple signatures (multisig). At least ⅔ of the signatures are required in order for the staking pool to sign attestations under one unified validator key signature on the Beacon Chain.

In essence, the Pools-Chain is a collection of multisig wallets governed by a shared consensus mechanism that organizes & liquidates pools, randomly assigns active participants (Block Producers) to perform duties on behalf of the pools, and distributes (bETH & CDT) rewards.

The network is comprised of the following actors:

Pool Stakers

Users who will stake as little as 0.1 ETH, with no infrastructure requirements. Pool Stakers will deposit ETH and receive bETH tokens, which represent their staked ETH and can be transferred and traded affording the user full liquidity of funds. The Pool Stakers’ ETH will be assigned to a staking pool and staked on the Beacon Chain. Pool Stakers will share a nominal percent of their rewards with other network participants as a fee for passive Eth2 staking.

Block Producers (BPs)

Bonded actors which secure the network (much like validators on the Beacon Chain) and perform pool duties. BPs will stake ETH and earn rewards from the Beacon Chain as well as provide the required infrastructure for the execution of pool duties on behalf of the Pool Stakers. In order to become a BP, a party must post 150% of their ETH stake as collateral and run a dedicated client.

A BP will be assigned by the Pools-Chain to perform duties on behalf of a pool. This is crucial for network decentralization and liveliness as no one single BP can jeopardize an entire pool or the network.

The Blox Ecosystem

As bonded actors, BPs will not be required to pay a portion of their ETH staking rewards to the network. As an incentive mechanism, BPs will receive CDT rewards for the correct execution of Pools-Chain duties.

CDT Stakers / The CDT Vault

Any CDT holder can stake CDT in the CDT Vault to receive bETH rewards. The bETH is derived from the Pool Stakers’ service fees.

The Blox Ecosystem

CDT Vault staking reduces CDT token velocity by offsetting the circulation of CDT tokens issued as rewards to BPs. The aim is to incentivize CDT staking and hence cause an overall deflationary pressure – maintaining supply balance for the token driving the decentralized Eth2 staking ecosystem.

Learn more about Blox Decentralized Staking Pools

Blox Native Token – CDT

CDT is the native token of Blox, it is an ERC-20 token that was first minted in August 2017, with a circulating supply of 674,579,184 and a total supply of 1 billion.

As the Blox Ecosystem grows to encompass decentralized Eth2 staking and staking pools, so too will CDT with the addition of an upgraded smart contract to mint new tokens for BP rewards issuance.

The Blox Ecosystem

Presently, CDT has one major function:

Burning

As part of the payment structure for Blox Staking, users will be charged a yearly fee in ETH when activating a mainnet validator. The fee will be deposited into a smart contract that converts the ETH to CDT through a Decentralized Exchange (DEX). The CDT will then be burnt, creating a deflationary pressure on total CDT token supply.

The Blox Ecosystem

Along with the Decentralized Staking Pools, CDT 2.0 will have two major functions:

Incentivizing BPs

BPs will be rewarded newly minted CDT for operating the Pools-Chain.

Vault Staking

Any CDT holder will be able to stake CDT in the dedicated CDT Vault. Vault participants will receive bETH rewards, derived from the service fees from the Pool Stakers.

Learn more about CDT

Conclusion

Forming the foundation of the decentralized Eth2 staking economy, The Blox Ecosystem has been designed to make ETH staking accessible to anyone, irrespective of technical level of expertise and availability of funds. Network participants are rewarded for their participation in the network, both for executing decentralized staking duties and for HODLing the ecosystem’s native token thereby reducing token velocity and causing an overall deflationary pressure on total token supply.