Structure

Minting zgETH

As seen in the zgETH section, the diagram below demonstrates the flow of how users mint zgETH. In short, when a restaker goes to stake their native Ethereum or liquid staked tokens (LSTs), they will receive zgETH equivalently in their wallet.

The Process of Transferring Assets to Node Delegator Contracts (NDCs)

The LRT (liquid restaked token) deposit pool is a collective fund of all the LSTs and ETH accumulated in the protocol by restakers. This assortment of assets consisting of a combination of LSTs and native Ethereum is then broken up and sent to respective Node Delegator Contracts (NDCs) in order to be utilized.

Different assets are distributed to different contracts, according to: set tokenomics, NOs weights or equal distribution.

Diagram demonstrating how assets in the LRT Deposit Pool are passed along to Node Delegator Contracts

Transferring Assets to Strategies

Deposit funds into StrategyManager.depositintoStrategy once per asset per Node Delegator Contract (NDC) per run daily.

This call sorts ERC-20s into the appropriate strategies in order to be utilized. It is important to note that StrategyManager is an EigenLayer contract meaning that the deposit has entered EigenLayer by this stage already.

Delegation & Undelegation, to and from, Operator is done through EigenLayer smart contracts.

Diagram demonstrating how assets are transferred from Node Delegator Contracts (NDCs) to the Strategy Manager

Asset Withdrawal

In the context of withdrawing assets within the EigenLayer framework, the process unfolds through a series of steps initiated by the successful undelegation of assets. Once this undelegation occurs, the assets are transferred to Node Delegator Contracts (NDCs), which then relay these assets to the WithdrawalManager smart contract.

This WithdrawalManager smart contract plays a critical role in the next phase of the process. It is responsible for determining the precise amount of assets that will be allocated to the individual or entity initiating the restake, based on the prevailing exchange rate at the time of withdrawal. This calculation ensures that the distribution of assets is fair and reflects the current value accurately.

Following the determination of the asset amount, the WithdrawalManager facilitates the transfer of these assets to the restaker. It is at this point that the restaker successfully retrieves their assets. To finalize the withdrawal process within the EigenLayer ecosystem, the zgETH tokens that were representative of the restaker's position in the protocol are irrevocably burned. This action is symbolic of completing the withdrawal, as it effectively removes the restaker's stake from the protocol, ensuring the integrity and balance of the system are maintained.

Supporting Modules

Registry Module: Within the zgETH ecosystem, a centralized Registry Module will catalog all participating operators, services, and assets. This module not only acts as a directory but also archives crucial metadata for each registered entity, alongside essential characteristics that define the zgETH protocol.

Oracle Module: Essential to the dynamic operation of the zgETH system, the Oracle Module's purpose is to relay up-to-the-minute price information for all supported assets directly to the zgETH smart contracts. Utilizing these real-time valuations, the system can accurately mint or burn the appropriate volume of zgETH in response to user deposits and withdrawals, ensuring transactions reflect current market conditions.

Governance Framework: A comprehensive suite of contracts forms the governance backbone, effectively translating approved policy proposals into actionable code. This transformation allows for the modification of smart contract functionalities, ensuring the zgETH ecosystem remains adaptive and aligned with its users' evolving needs.

Reward Market Module: Anticipating the burgeoning growth of Actively Validated Services (AVS), this innovative module stands ready to convert non-ETH rewards into various additional yield-generating strategies. As the AVS sector expands, the Reward Market Module is poised to serve as a crucial analytical layer, evaluating and mitigating risks associated with diversifying governance and utility tokens earned through rewards.

Together, these components orchestrate a coherent and sophisticated infrastructure, designed to adapt and thrive within the dynamic landscape of blockchain technologies and digital assets.