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Security and Validator Selection

Regardless of the integration approach, validators are critical to Vara.eth's operation. Their selection and management are governed by a decentralized re-staking mechanism facilitated by the Symbiotic Protocol. This process ensures that Vara.eth maintains a secure and scalable compute network by dynamically managing the set of validators (operated by network participants called operators) responsible for program execution.

Symbiotic Protocol provides the infrastructure for this election process, serving as an exchange hub for three primary stakeholders: stakers, operators, and the Vara.eth network itself. Together, these actors create a robust and decentralized validator selection mechanism tailored specifically to Vara.eth's requirements.

Security Modes​

Vara.eth is designed with two complementary security modes that applications can choose based on their needs:

Liquid Restaking-Powered PoS
Enables security for internal Vara.eth consensus while reducing overhead in many cases, leveraging VARA token staking and delegation for efficient validation. This mode is detailed throughout this section.

ZK-Verified Mode
Uses zero-knowledge proofs to maintain full Ethereum-equivalent security, ensuring every computation is cryptographically verified on mainnet. This mode provides the highest level of security guarantees for applications requiring trustless verification.

Both modes run on decentralized, permissionless infrastructure using consumer-grade hardware. This dual approach links the economic security of Vara Network with Ethereum while giving developers flexibility in security-performance trade-offs.

Validator Selection Workflow​

Vara.eth configures the operator set, establishing parameters such as staking limits and the maximum allowable stake for individual operators. Operators (entities that run validator nodes) are elected based on their ability to attract stakers who delegate collateral (e.g., ERC-20 representations of VARA or other supported assets) to them. This delegated stake determines their eligibility to serve as active validators. Once elected, operators participate in program execution through their validators and sign results collectively, which are then finalized by the Router Contract. The list of active validators is continuously updated and pushed to the Router Contract, which governs Vara.eth's decentralized compute infrastructure.

Key elements of the selection process include:

  1. Stake Allocation: Vara.eth establishes operator sets, defines staking requirements, and locks stake amounts for predefined epochs to maintain network stability.
  2. Symbiotic Vault Integration: Vaults manage the staking process, allocate collateral to operators, and enforce strategies specific to Vara.eth's execution needs.

Key Actors in Vara.eth Validator Selection​

  • Vara.eth Network: Defines the decentralized infrastructure required to execute programs, configures operator sets, and establishes staking parameters. Vara.eth also ensures that stakers and operators are appropriately rewarded for their contributions.
  • Stakers: Provide economic security by delegating collateral to operators. In return, they receive a share of the rewards distributed by Vara.eth.
  • Operators: Operate validator nodes to execute programs on Vara.eth. Operators are the entities responsible for running and maintaining the technical infrastructure (validators). They benefit from Symbiotic Protocol's ability to pool stakes across multiple stakers, enabling efficient security for Vara.eth without requiring isolated infrastructure for each staker.
  • Vaults: Act as intermediaries in the staking process, handling deposits, withdrawals, and slashing events. Vaults also distribute staking rewards based on performance and provide historical data for external reward contracts.

Rewards and Incentives​

Vara.eth ensures that stakers and operators are properly incentivized for their roles within the network. Rewards are calculated off-chain by Vara.eth, which generates a Merkle tree structure to facilitate secure and transparent claims by participants. The rewards are divided into:

  • Operator Rewards: For maintaining and running validator nodes.
  • Staker Rewards: For providing the collateral that secures Vara.eth's operations.

This flexible reward logic allows Vara.eth to adapt its incentive structure as needed, ensuring long-term sustainability.

Slashing and Misbehavior​

Symbiotic incorporates a robust slashing mechanism to deter malicious behavior. If a validator produces inaccurate results or its operator engages in misconduct, a special Middleware contract can initiate a slashing request to Symbiotic. Symbiotic's Slasher module validates these requests and enforces penalties by reducing the stake of the offending validator and its operator. This ensures economic accountability and strengthens the overall integrity of the network.

Attracting Validators and Operators​

Running a Vara.eth validator node is designed to be mutually beneficial for operators and stakers. With the added appeal of rewards and the flexibility provided by Symbiotic's Vault and staking mechanisms, many Vara Network validators and other operators are expected to run Vara.eth validator nodes, further bolstering the network's security and scalability.