Insurance for AVS's and XGA v2

🔊📢 Announcements
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Captive Insurance for AVS and XGA v2

XGA v2: AVS Boost: Pioneering MEV Restaking Innovation

XGA v2 is designed to elevate the Maximal Extractable Value (MEV) for validators while ensuring a seamless integration with zero slashing risk for validators. This includes:

  • AVS Enabled MEV Boost Service
  • Insurance for AVS Services
  • Intent/Inclusion Market for additional Yield

Key Highlights:

  • AVS Boost Support: XGA builds on the established product-market fit of MEV Boost, allowing validators to effortlessly extract MEV through a simple relay URL change. Node operators only need to configure their relay settings to access higher yield opportunities through XGA’s systems.

  • Restaking Yield Opportunities: The XGA AVS Boost introduces a modified version of MEV Boost to support additional safety measures and restaking protocols such as Eigenlayer. This technology ensures validators can profit unambiguously more than running the traditional MEV Boost.

  • Economic Impact: XGA introduces a novel source of non-protocol yield through MEV strategies, creating a dominant participation strategy for validators and network participants.

Innovative Staking Yields Forecast

According to research, the introduction of AVS-driven restaking is forecasted to increase staking APYs significantly. XGA predicts restaking will increase yields by 11.5% over the next years, outpacing traditional MEV Boost returns.

Existing MEV Supply Chain
Existing MEV Supply Chain3392×1938 349 KB

XGA’s MEV supply chain disintermediates access for participants, offering higher returns and flexibility for validators, users, and builders. Validators can now enjoy direct subsidies for user intents via inclusion markets, bypassing vertical integration models.

Diagram 1: XGA MEV Supply Chain (to be extracted)

Captive Insurance for AVS:

The XGA platform also introduces a layer of Captive Insurance for validators and participants in AVS, ensuring against losses from unforeseen events or market disruptions, adding an extra layer of security and trust for validators opting into the system.

AVS enabled MEV Supply Chain
AVS enabled MEV Supply Chain1920×1098 106 KB

Enhanced Validator Incentives: This provides for optionality for validators to engage in diverse commitments, inclusion markets, and transaction flows.

Captive Insurance for AVS

This extends the captive insurance module and provides insurance for any slashing event for any particular AVS system that is authorized through participating validator sets that are restaking.

1 Like
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What about top of block auction It is initially planned to introduce it in xga v2 right?

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ToB, aka Alpha block, continues as a mev-boost spot auction, and built by traditional mev-boost builders as usual.

see more details here:

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No what I am asking is preconfirmation for top of block? What is avs boost? Plzzz explain

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The XGA design keeps ToB as a spot auction (traditional mev-boost) with no preconfs, due to risks such as a sophisticated actor (searcher/builder, etc) exploiting ToB preconfs sequentially to extract valuable MMEV.

i.e. MMEV or Multi-block MEV where you control ToB preconfs at blocks t1=12s and t2=24s, censor txs in t1 and extract MMEV (e.g. CEX-DEX stat arbs) in t2.

XGA only sells preconfs for the Bottom of Block - BoB. MMEV cannot happen in this case because BoB builders need to submit their bundles without knowing how ToB will look like, so buying multiple blocks in a row, to perform MMEV, won’t work here.

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Got u max Whether fold will be used for captive insurance for avs? Any idea about how avs boost works?