1.
Day 13/30 of @THORChain threads
Subject : Nodes
Why is @THORChain the only blockchain to over collateralize every asset secured by the network ?
Day 13/30 of @THORChain threads
Subject : Nodes
Why is @THORChain the only blockchain to over collateralize every asset secured by the network ?
2.
I will give a random @ThorGuards from my vault among everyone who retweets the first part of the thread.
I will give a random @ThorGuards from my vault among everyone who retweets the first part of the thread.
3.
The idea is pretty simple.
When you deposits assets in a network, the security is only as strong as the incentives of the validators, relayers and price oracles.
They can collude and steal it.
The idea is pretty simple.
When you deposits assets in a network, the security is only as strong as the incentives of the validators, relayers and price oracles.
They can collude and steal it.
4.
In the case of smart contracts on $eth, the whole network is securing them, making it impossible for individuals to collude and steal.
This is not the case when you deal with multi-chain assets.
In the case of smart contracts on $eth, the whole network is securing them, making it impossible for individuals to collude and steal.
This is not the case when you deal with multi-chain assets.
5.
In @THORChain's design, each validating node needs to operate a validator on every blockchain supported.
This adds up to thousands of dollars a month in hosting fees and requires a very knowledgable sysadmin to operate. This isn't scalable to 1000s of nodes.
In @THORChain's design, each validating node needs to operate a validator on every blockchain supported.
This adds up to thousands of dollars a month in hosting fees and requires a very knowledgable sysadmin to operate. This isn't scalable to 1000s of nodes.
6.
In @THORChain's design, each wallet is secured by networks of 40 nodes that use a TSS to move the capital around. 2/3rd need to agree.
That means 27 people would need to collude together to steal assets if they didn't have so much to lose.
In @THORChain's design, each wallet is secured by networks of 40 nodes that use a TSS to move the capital around. 2/3rd need to agree.
That means 27 people would need to collude together to steal assets if they didn't have so much to lose.
7.
This is where the idea of the validators being over collateralized comes from. If every validator always has more money to lose than to gain, then there can be no rational financial attack on the network.
This is where the idea of the validators being over collateralized comes from. If every validator always has more money to lose than to gain, then there can be no rational financial attack on the network.
8.
Every moving part in the network, relayers, validators and price oracles creates a weak point for embezzlement and regulatory attacks.
@THORChain's design requires none.
Every moving part in the network, relayers, validators and price oracles creates a weak point for embezzlement and regulatory attacks.
@THORChain's design requires none.
9.
It will have taken 4 years to bring a viable design to mainnet where creating an oracle based one could have taken months.
The goal is to make it :
- Decentralized
- Trustless
- Permissionless
- Censorship resistant
It will have taken 4 years to bring a viable design to mainnet where creating an oracle based one could have taken months.
The goal is to make it :
- Decentralized
- Trustless
- Permissionless
- Censorship resistant
10.
The network of nodes that secures it are mostly anonymous. The only two public facing nodes operators that are well known are myself and @TheRuneRanger.
The network of nodes that secures it are mostly anonymous. The only two public facing nodes operators that are well known are myself and @TheRuneRanger.
11.
This makes it more resistant to regulatory attacks. There is no front end to attack, it's a faceless API. Everyone can just interact with it. Everyone running it are anonymous. Regulatory capture would be hard.
This makes it more resistant to regulatory attacks. There is no front end to attack, it's a faceless API. Everyone can just interact with it. Everyone running it are anonymous. Regulatory capture would be hard.
12.
There is currently one weak point towards that : Our reliance on AWS and big cloud. While geopolitical arbitrage is done, countries like the US government could have a lot of sway over amazon. The department of defence is their biggest client.
There is currently one weak point towards that : Our reliance on AWS and big cloud. While geopolitical arbitrage is done, countries like the US government could have a lot of sway over amazon. The department of defence is their biggest client.
13.
Solutions are being worked on. Running a node requires tremendous power. The @terra_money blockchain alone is 2.7 terrabytes of data.
The plan is adding every economically significant blockchain to the network in the next 12 months.
Solutions are being worked on. Running a node requires tremendous power. The @terra_money blockchain alone is 2.7 terrabytes of data.
The plan is adding every economically significant blockchain to the network in the next 12 months.
14.
The solutions to this is to move to bare metal nodes and decentralized hosting like @akashnet_. This is being worked actively, many community devs are running their nodes on bare metals and are actually overperforming AWS ones.
The solutions to this is to move to bare metal nodes and decentralized hosting like @akashnet_. This is being worked actively, many community devs are running their nodes on bare metals and are actually overperforming AWS ones.
15.
Essentially what the @THORChain node network does is observe transactions that happens in a wallet with a specific memo. Once the super majority of validators observe it's valid, they send a transaction on the receiving blockchain to the users, settling the debt.
Essentially what the @THORChain node network does is observe transactions that happens in a wallet with a specific memo. Once the super majority of validators observe it's valid, they send a transaction on the receiving blockchain to the users, settling the debt.
16.
There are two kind vaults where liquidity pools assets are being held : A big one called Asguard. For every 40 nodes, one of theses vaults exists. Theses vaults are rotated every 3 days at churn events, assets get moved and the empty vaults abandoned.
There are two kind vaults where liquidity pools assets are being held : A big one called Asguard. For every 40 nodes, one of theses vaults exists. Theses vaults are rotated every 3 days at churn events, assets get moved and the empty vaults abandoned.
17.
Each node is a custodian of crypto assets in their 'hot wallets' called yggdrasil. This allows to speed up the network speed, TSS multisigs are long.
However, the network is only as fast as the L1 blockchains is on when not using synths.
BTC transactions are slow.
Each node is a custodian of crypto assets in their 'hot wallets' called yggdrasil. This allows to speed up the network speed, TSS multisigs are long.
However, the network is only as fast as the L1 blockchains is on when not using synths.
BTC transactions are slow.
18.
To bypass the problem of the price oracle, the price of $rune is determined by the ratio stablecoin VS rune in the deepest stable pool.
The same goes on with other assets, the ratio of $rune / $asset in the pools determine the price.
That removes the oracle attack vector
To bypass the problem of the price oracle, the price of $rune is determined by the ratio stablecoin VS rune in the deepest stable pool.
The same goes on with other assets, the ratio of $rune / $asset in the pools determine the price.
That removes the oracle attack vector
19.
To prevent the capture of the network and to incentivize bigger collateral, nodes are churned out and replaced every 2 days and 18 hours.
3 nodes are churned out :
- The one with the lowest bonded collateral
- The oldest one
- The worst performing one
To prevent the capture of the network and to incentivize bigger collateral, nodes are churned out and replaced every 2 days and 18 hours.
3 nodes are churned out :
- The one with the lowest bonded collateral
- The oldest one
- The worst performing one
20.
If you are wondering how 100 node operators will be able to add enough capital for the network to grow :
Everytime liquidity is added on @THORChain the value of the $rune collateral goes up. If there's $1 in a liquidity pool, there's always $3 of $rune locked up.
If you are wondering how 100 node operators will be able to add enough capital for the network to grow :
Everytime liquidity is added on @THORChain the value of the $rune collateral goes up. If there's $1 in a liquidity pool, there's always $3 of $rune locked up.
21.
Once we have about $200m $rune bonded in the collateral (less if multiplier is high), people will be able to add an unlimited amount of liquidity in the pools, the value of the $rune will be come fully reflective on the assets deposited.
Once we have about $200m $rune bonded in the collateral (less if multiplier is high), people will be able to add an unlimited amount of liquidity in the pools, the value of the $rune will be come fully reflective on the assets deposited.
22.
This is why I decided to become a node operator. When the pools are balanced, 2/3rd of all transactions fees and emissions are given to the nodes.
IMO each node has the ability to generate 100m+ in revenues + receive a massive amount of $rune value capture.
This is why I decided to become a node operator. When the pools are balanced, 2/3rd of all transactions fees and emissions are given to the nodes.
IMO each node has the ability to generate 100m+ in revenues + receive a massive amount of $rune value capture.
23.
Here is a thread on token value capture :
Here is a thread on token value capture :
https://twitter.com/THORmaximalist/status/1504977577240408071?s=20&t=jZMUBvyrq6BknV6TBSJtPQ
24.
A few multi-chain networks are claiming to be trustless. They fully subjected to the oracle or relayers risks, regulatory and collusion. In a lot of cases theses networks are permissioned and doxxed.
TC is the only network that is 100% fully trustless by design.
A few multi-chain networks are claiming to be trustless. They fully subjected to the oracle or relayers risks, regulatory and collusion. In a lot of cases theses networks are permissioned and doxxed.
TC is the only network that is 100% fully trustless by design.
25.
For more threads about @Thorchain and $rune, click here : linktr.ee/thormaximalist
If you are a $rune whale (100k+ $rune) would like to bond to a node while keeping custody, send me in PM.
If you like my content, please delegate to my 0 fees $luna node :)
For more threads about @Thorchain and $rune, click here : linktr.ee/thormaximalist
If you are a $rune whale (100k+ $rune) would like to bond to a node while keeping custody, send me in PM.
If you like my content, please delegate to my 0 fees $luna node :)
26.
Everything is really more complex than that in reality but I tried to break it down as simply as possible.
Everything is really more complex than that in reality but I tried to break it down as simply as possible.
27.
This is why there is no automatically delegated $rune in network.
People can organize together through a small circle of whitelisted addresses, but if the NO has a good stake in the bond he cannot profitably steal from yygdrasil
This is why there is no automatically delegated $rune in network.
People can organize together through a small circle of whitelisted addresses, but if the NO has a good stake in the bond he cannot profitably steal from yygdrasil
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