L1 Staking Architecture
L1 staking architecture, detailing its components, processes, and integration guidelines for L1 projects.
Last updated
L1 staking architecture, detailing its components, processes, and integration guidelines for L1 projects.
Last updated
This document outlines the Hypha L1 staking architecture, covering its components, processes, and integration for L1 projects.
Hypha's provides a comprehensive infrastructure for launching and supporting Avalanche L1s through a unique staking and validation system. This architecture document details how the platform connects L1 projects, stakers, and hardware providers in a seamless ecosystem.
The architecture includes key components that enable staking, validation, and reward distribution.
The following are definitions and descriptions for each of the essential contracts that power the Hypha staking system, enabling validator creation, stake, and reward distribution in a trustless manner.
The NFTStakingManager serves as the central orchestration layer for the entire staking ecosystem.
Manages relationships between hardware operators and node license holders.
Tracks NFT staking and adjusts validator weights automatically through the ValidationManager
Enables hardware operators to create zero-weight validators using HardwareOperatorLicense NFTs, each with a configurable amount of default weight.
Allows NodeLicense holders to delegate NFTs to validators, increasing their consensus weight.
Processes uptime proofs submitted by validators on an epoch schedule to distribute rewards to both NodeLicense holders and hardware operators based on their contributions.
The ValidationManager contract serves as the interface between Hypha's staking system and the Avalanche consensus mechanism. The ValidationManager is a default Avalanche contract that handles the technical aspects of validator lifecycle management within the network.
Owned exclusively by the NFTStakingManager, to ensure only authorized validators participate in consensus.
Registers validators and updates their weights in the Avalanche network.
Maintains a registry of active validators and their respective weights, interfacing directly with the subnet's validation process.
While the NFTStakingManager focuses on higher-level staking logic, the ValidationManager handles the subnet-specific technical implementation details.
The NodeLicense is an ERC-721 NFT that represents the fundamental staking unit within the Hypha ecosystem.
Grants its holder the right to contribute staking weight to any validator in the network.
Holders delegate to validators, adding weight and earning rewards based on validator performance.
Enables staking without running hardware, lowering participation barriers.
Can be acquired through primary sales from L1 projects or secondary markets, ensuring liquidity.
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NodeLicensealone does not allow someone to create a zero-weight validator; that capability is dependent on theHardwareOperatorLicense.
The HardwareOperatorLicense is a specialized ERC-721 NFT that grants its holder the ability to create and operate validators within the network.
Represents authorization to provide the physical infrastructure that secures the network.
Holders register NodeIDs with the ValidationManager and create validators with default weight through the NFTStakingManager.
Supports two revenue models:
On-chain hardware payment tracking: Operators can record that NodeLicense holders have paid for hardware costs directly.
Staking fee percentages: If there’s no direct hardware payment, operators can collect a percentage of rewards as staking fees from NodeLicense stakings.
The distribution of HardwareOperatorLicenses is typically controlled to ensure that only qualified and trusted entities can operate network infrastructure. This curation process helps maintain network reliability and performance standards.
The following diagram illustrates the three critical operational workflows within the Hypha L1 Staking ecosystem.
