From c118a9712236473bd9fa33b06afc44ad3b39eae3 Mon Sep 17 00:00:00 2001 From: "github-actions[bot]" <41898282+github-actions[bot]@users.noreply.github.com> Date: Wed, 7 Aug 2024 19:43:24 +0000 Subject: [PATCH] deploy: 07361134e781c77e208ade04d4c792db260710b5 --- 404.html | 4 ++-- CNAME | 2 +- assets/js/9a620d71.b5236216.js | 1 + assets/js/9a620d71.f5ebfea3.js | 1 - .../{runtime~main.1879e33c.js => runtime~main.093275dc.js} | 2 +- deployments/testnet/index.html | 7 +++---- index.html | 4 ++-- integrations/lsm_staking/index.html | 4 ++-- integrations/overview/index.html | 4 ++-- integrations/referral/index.html | 4 ++-- search-index.json | 2 +- search/index.html | 4 ++-- validators/faq/index.html | 4 ++-- validators/onboard/index.html | 4 ++-- validators/overview/index.html | 4 ++-- validators/roadmap/index.html | 4 ++-- validators/valset/index.html | 4 ++-- 17 files changed, 29 insertions(+), 30 deletions(-) create mode 100644 assets/js/9a620d71.b5236216.js delete mode 100644 assets/js/9a620d71.f5ebfea3.js rename assets/js/{runtime~main.1879e33c.js => runtime~main.093275dc.js} (82%) diff --git a/404.html b/404.html index 71ea6dff..6e9a2c4a 100644 --- a/404.html +++ b/404.html @@ -4,13 +4,13 @@ Page Not Found | Drop docs - +
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-

pion-1 [testnet]

Cosmos Hub Instance

Current Cosmos Hub Drop testnet instance uses provider testnet. -It's to be replaced with actual Cosmos Hub testnet shortly.

Contracts

ContractAddress
factoryneutron13w6n6kj5pz59chgmeq63xeuy5y8shd2h9hkm2tvy5a35ugnuzzlsltznae
core_contractneutron1elxhch2kul3qk2whxawtfwe0l2ma0snec3fe6j4zp2wftwrhs33q2yzqwy
distribution_contractneutron1jnre6ef6mlcyfqsu8e9a2wf27farphsrgezlv0n8ezl9vfzdc7vqkmtvpm
puppeteer_contractneutron1zvk70rw9xk5nvkw3c8ms62n5v9t6zpayfkygn8m5pgwyrqzsjsaq2upegw
rewards_manager_contractneutron1t0spq2jeef7jvvydlaz4jxga37skrnqk0uuxa5d7nqcrjtnk79lsnfygj3
staker_contractneutron1qcz9uw5g3vwqmz7qcsmcua3vzps6amrsqrmf7r84xfe76g3ztsrqm82sfy
strategy_contractneutron1sjeppcavzvect0e5654tl4w06pp9sdx2pmxqy8m4jwv58jlwwv8quv86yy
token_contractneutron1wgtjgeprg53wthczzlzpg0vrytuvfl9j59lpf87qd3mtj2dq6xysxvwcxd
validators_set_contractneutron1sq87ct42mza6sjpj9qgkfk3ngyaqc03ykf78z3e5hez68zfs4a5qyxl5pg
withdrawal_manager_contractneutron1tgw3d229d93rhk3hv68ff7f8zjs9lgk9lv9pkvp8fmt46ja47u0s02xxhg
withdrawal_voucher_contractneutron1hvr35t4s0r9nrt4taujyu704r4wfynp4ed5dz32pa7xcwzgwr9vs7vu4gy

Denoms

SymbolDenom
ATOMibc/D1283F23CC25C39F16BCFB2DFFA9997AE7A101B92810D0F9F0AA092F6FE332D0
dATOMfactory/neutron1wgtjgeprg53wthczzlzpg0vrytuvfl9j59lpf87qd3mtj2dq6xysxvwcxd/drop
- +

pion-1 [testnet]

Cosmos Hub Instance

Current Cosmos Hub Drop testnet instance uses theta-testnet-001 testnet.

Contracts

ContractAddress
factoryneutron1yumnxj30nyxhvv4zdq963vk7v63mfjg5jghawxrgj4cc0fja829qugzjpt
core_contractneutron1ja8hvq3yarz6yyman9qfqkkkvyp6neykka3grfznt40w53lrm8tsftjy9a
distribution_contractneutron1d6rq2q993atet3n88erdjm774yun2y5e9fs8g8luy8a6dywsz9yq803eu2
puppeteer_contractneutron1y2z92k32qwxpdn3psjju7eqt86eddlhtk7cjz4nky95xhsu005qqgyfcqf
rewards_manager_contractneutron1g3n8re446lu62yfwfzsn7m6fwwl0amcke65hn2t0mjuzvfpp2dxqcczuvr
rewards_pump_contractneutron1qdek37v7r3vlrxwa297x4vjzlrmyzu6ymzwa5fsu6q4y3hld635sf98ss6
staker_contractneutron14aegmcv9ydtkkywmj9s3agewq4n7p0kdnz6mkrsqk80w7axyun0szs5n8f
strategy_contractneutron1rs7g9005me78r0qyzyc5el9qdyv4fs9r8audr876jl7x5r3hs07s00wmqy
token_contractneutron16l0qfrrahy5mve5x9nnw6zs9vv30k7rk55h6aaypq88ljwg57uxsxcg6y6
validators_set_contractneutron1sq7a7kjyla0lyfdv44hct2kgf7efnw4g4flvzl9zf3exypwzuynqq28sgt
unbonding_pump_contractneutron1vmv7swhz3q25t2qa58wtrqkkn9nreke9u9h70azl6wlcq0pr5utqyplrqk
withdrawal_manager_contractneutron1mlq0v5rqv03dvrl3vlsgffzsq7m84m3ffv4yqf3tez69w930x9dszeddlx
withdrawal_voucher_contractneutron1zcnkcdqs76zfcuewtskjnappumqk84nf2vrw5hctf8fqsgcs27mqkpnapq

Denoms

SymbolDenom
ATOMibc/9DF365E2C0EF4EA02FA771F638BB9C0C830EFCD354629BDC017F79B348B4E989
dATOMfactory/neutron16l0qfrrahy5mve5x9nnw6zs9vv30k7rk55h6aaypq88ljwg57uxsxcg6y6/udatom

ICA addresses

ContractAddress
puppeteer_contractcosmos1r0ts4l7c26jrhx8ev403ylqrfk0j7z0jath52wh6t59a4drxj50qgqtlg4
unbonding_pump_contractcosmos1xfjwzvw9mv33atelre5vuhv7w48yg7nvyqwl2cf9zfjpkktmevgs7ks0a0
rewards_pump_contractcosmos1vkngfztggkzxzwrer005n96r0f2saa3xruqfkay9z93tnp76d0ksa5m0zg
+ \ No newline at end of file diff --git a/index.html b/index.html index c3594975..8cf53cf7 100644 --- a/index.html +++ b/index.html @@ -4,13 +4,13 @@ Introduction | Drop docs - +

Introduction

Learn how Drop protocol manages cross-chain delegations and build integration and dApps with dAssets.

image

Drop is a cross-chain liquid staking protocol built as an Integrated Application on the Neutron network. Drop is a trustless protocol consisting of CosmWasm contracts controlling the flow of assets between multiple blockchains using IBC, Interchain Transactions and Interchain Queries. Upon receipt of supported assets, the protocol mints liquid staking receipt tokens using the Token Factory standard.

For liquid staking or referral integrations, see the Integration guide.

- + \ No newline at end of file diff --git a/integrations/lsm_staking/index.html b/integrations/lsm_staking/index.html index 51d76641..243571a2 100644 --- a/integrations/lsm_staking/index.html +++ b/integrations/lsm_staking/index.html @@ -4,7 +4,7 @@ Onboarding from native staking | Drop docs - + @@ -26,7 +26,7 @@ Thus, to convert native staking to liquid staking, we need at least 2 transactions.

Where:

  • source_channel is the Cosmos Hub-Neutron channel (you can use "relayers" page on Mintscan to get it)
  • timeout_timestamp is an IBC timeout. You can use 10 minutes by default and the following JavaScript snippet to calculate it:
    Math.floor(Date.now() / 1000) * 1e9 + 10 * 60 * 1e9;

Alternatively, one can split the operations in two. In this case, it will be regular IBC transfer for the LSM share, and regular staking with Drop. LSM share staking process is the very same as ASSET staking, but the coin attached to the message is an LSM share IBC-transferred to Neutron.

- + \ No newline at end of file diff --git a/integrations/overview/index.html b/integrations/overview/index.html index aa343be1..707bdb65 100644 --- a/integrations/overview/index.html +++ b/integrations/overview/index.html @@ -4,7 +4,7 @@ Drop integration | Drop docs - + @@ -17,7 +17,7 @@ The user receives an NFT once they provide dASSET to unstake.

Here's the example on how to get the withdrawal NFT info from via generated client:

const vouchers = await withdrawalVoucherContractClient.queryTokens({
owner: neutronUserAddress,
});

Actions

Any action is represented as exchanging one token for another:

  • Staking is an exchange of ASSET for dASSET.
  • Unstaking request is an exchange of dASSET for withdrawal NFT.
  • Unstaking withdrawal is an exchange of withdrawal NFT for ASSET.

NB: there is a planned plug in integration which will allow to skip the withdrawal step. The idea behind it that the user can provide an additional gas token and lock their withdrawal NFT in the special contract that will process the withdrawal for them automatically. So in the future it will be possible to unstake without the need to withdraw assets manually.

Staking

Staking with Drop is done by the following message to the core contract with assets to stake attached, it is possible to omit receiver field, in this case sender's address will be used:

{
"bond": {
"receiver": "neutron1receiveraddress"
}
}

For specifying the staking referral see Referral program integration.

Example of using the TS client:

const bondTxResult = await coreContractClient.bond(
neutronUserAddress,
{},
1.6,
undefined,
[
{
amount: "500000",
denom: neutronIBCDenom,
},
]
);

Staking of LSM shares is done with the very same message. The only difference is the asset attached: instead of being native staking token, it should be LSM share IBC transferred to Neutron. For more details, see Onboarding from native staking.

Unstaking request

To make an unstaking request, user should send the dASSET to the core contract with the following message:

{
"unbond": {}
}

Example of using the TS client:

let unBondTxResult = await coreContractClient.unbond(
neutronUserAddress,
1.6,
undefined,
[
{
amount: Math.floor(200_000 / exchangeRate).toString(),
denom: "token_factory_denom",
},
]
);

After that, user receives a withdrawal voucher that they can use to withdraw their coins after the unbonding period.

Withdrawal

Withdrawal of the ASSET implies sending the NFT to withdrawal_manager with the following message attached:

{
"withdraw": {}
}

Example of using the TS client:

const voucherWithdrawTxResult = await voucherContractClient.sendNft(
neutronUserAddress,
{
token_id: tokenId,
contract: withdrawalManagerContractAddress,
msg: Buffer.from(
JSON.stringify({
withdraw: {},
})
).toString("base64"),
}
);
- + \ No newline at end of file diff --git a/integrations/referral/index.html b/integrations/referral/index.html index d1e71ece..7ea900ea 100644 --- a/integrations/referral/index.html +++ b/integrations/referral/index.html @@ -4,13 +4,13 @@ Referral program integration | Drop docs - +

Referral program integration

Apps integrating Drop protocol can be interested in either Droplets program or Revenue share program.

Doing that is as easy as specifying the referral address in the staking message:

{
"bond": {
"receiver": "neutron1receiveraddress",
"ref": "neutron1referreraddress"
}
}

Staking messages containing referral address will be processed according to the program address participates in.

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Under the hood it means that the ownership over those staked assets is transferred to Drop protocol and user gets respective amount of dASSET in exchange.","s":"Onboarding from native staking","u":"/integrations/lsm_staking","h":"","p":10},{"i":13,"t":"The first action described here is a general tokenized creation. An example of the message: { \"@type\": \"/cosmos.staking.v1beta1.MsgTokenizeShares\", \"delegator_address\": \"cosmos_delegator_address\", \"validator_address\": \"cosmosvaloper_validator_address\", \"amount\": { \"denom\": \"denom\", \"amount\": \"1234\" }, \"tokenized_share_owner\": \"cosmos_tokenized_share_owner\" } Where: cosmos_delegator_address is an address of the user that currently has staked assets validator_address is the address of validator assets are delegated to tokenized_share_owner is the address which will be getting rewards. Regardless of the current owner of tokenized share tokens, the rewards will be distributed to the address specified here. It's useful for example when assets are IBC transferred and previous owner still gets rewards instead of IBC module. In order to reveal how many tokens the user have staked use this query. Once the operation above is performed, a new denom is created and the user gets new minted tokens that represent staked tokens. The denom has the following structure: cosmosvaloper1**************************************/123, so it consists of the validator address and an index of this LSM share.","s":"Tokenized share creation","u":"/integrations/lsm_staking","h":"#tokenized-share-creation","p":10},{"i":15,"t":"That tokenized share can be staked with Drop only if it was produced by validatator from the Drop validator list. To get this list you need to do the following: Query core contract config: { \"config\": {} } Get validator set contract from the result via \".validators_set_contract\" field Query validators from validator set contract with the following query: { \"validators\": {} } The example of a result: { \"data\": [ { \"valoper_address\": \"cosmosvaloper1gh4vzw9wsfgl2h37qqnetet0m4wrzm7v7x3j9x\", \"weight\": 10, \"last_processed_remote_height\": null, \"last_processed_local_height\": null, \"last_validated_height\": null, \"last_commission_in_range\": null, \"uptime\": \"0\", \"tombstone\": false, \"jailed_number\": null, \"init_proposal\": null, \"total_passed_proposals\": 0, \"total_voted_proposals\": 0 }, { \"valoper_address\": \"cosmosvaloper1rndyjagfg0nsedl2uy5n92vssn8aj5n67t0nfx\", \"weight\": 10, \"last_processed_remote_height\": null, \"last_processed_local_height\": null, \"last_validated_height\": null, \"last_commission_in_range\": null, \"uptime\": \"0\", \"tombstone\": false, \"jailed_number\": null, \"init_proposal\": null, \"total_passed_proposals\": 0, \"total_voted_proposals\": 0 } ] }","s":"Drop LSM staking restrictions","u":"/integrations/lsm_staking","h":"#drop-lsm-staking-restrictions","p":10},{"i":17,"t":"After one created a tokenized share on Cosmos Hub, it can be staked with Drop. As well as with ATOM, transfer and stake can be done in one transaction (thankfully to IBC hooks): { \"type\": \"cosmos-sdk/MsgTransfer\", \"value\": { \"memo\": \"{\\\"wasm\\\":{\\\"contract\\\":\\\"neutron1_core_contract\\\",\\\"msg\\\":{\\\"bond\\\":{}}}}\", \"receiver\": \"neutron1_core_contract\", \"sender\": \"cosmos1_sender\", \"source_channel\": \"channel-123\", \"source_port\": \"transfer\", \"timeout_height\": \"0\", \"timeout_timestamp\": \"12345678901234567890\", \"token\": { \"amount\": \"1234\", \"denom\": \"cosmosvaloper1**************************************/123\" } } } Unfortunately, due to the nature of LSM shares, one cannot do LSM share creation, transfer and staking with Drop in one transaction. The reason of it is that for the second part (transfer/stake) we need a denom of the LSM share. This denom contains the unique index of the LSM share that cannot be predicted. Thus, to convert native staking to liquid staking, we need at least 2 transactions. Where: source_channel is the Cosmos Hub-Neutron channel (you can use \"relayers\" page on Mintscan to get it) timeout_timestamp is an IBC timeout. You can use 10 minutes by default and the following JavaScript snippet to calculate it: Math.floor(Date.now() / 1000) * 1e9 + 10 * 60 * 1e9; Alternatively, one can split the operations in two. In this case, it will be regular IBC transfer for the LSM share, and regular staking with Drop. LSM share staking process is the very same as ASSET staking, but the coin attached to the message is an LSM share IBC-transferred to Neutron.","s":"IBC transfer and staking LSM share with Drop","u":"/integrations/lsm_staking","h":"#ibc-transfer-and-staking-lsm-share-with-drop","p":10},{"i":19,"t":"Apps integrating Drop protocol can be interested in either Droplets program or Revenue share program. Doing that is as easy as specifying the referral address in the staking message: { \"bond\": { \"receiver\": \"neutron1receiveraddress\", \"ref\": \"neutron1referreraddress\" } } Staking messages containing referral address will be processed according to the program address participates in.","s":"Referral program integration","u":"/integrations/referral","h":"","p":18},{"i":21,"t":"To receive protocol delegations from Drop, validators must first onboard to the protocol’s Allow List by applying during an onboarding wave. Onboarding waves are conducted on an ad-hoc basis to balance validator sustainability with protocol decentralization. While Drop might conduct onboarding wave when a new network is onboarded, Drop’s onboarding waves are not network-specific. As long as they continue to meet Drop’s requirement on each network, validators that are onboarded to the protocol’s Allow List are eligible for delegations across all supported network. Make sure to follow @Dropdotmoney on X to be notified when an onboarding wave opens. During an onboarding wave, validators must complete a three step process: Ensure they meet Drop’s requirements Apply to join the Allow List Maintain performance requirements","s":"Receive delegations from Drop","u":"/validators/onboard","h":"","p":20},{"i":23,"t":"To be eligible for protocol delegations, validators must continue to meet the following requirements: Operate their own infrastructure Have commissions set between 5% and 10% included Maintain >95% uptime over the last 90 days period Avoid jailing, slashing or tombstoning. Validators operated by or affiliated with Centralized Exchanges or Custodian service providers are not eligible to Drop’s protocol delegations.","s":"1. Ensure that your validator meets Drop’s requirements","u":"/validators/onboard","h":"#1-ensure-that-your-validator-meets-drops-requirements","p":20},{"i":25,"t":"💡 As part of the onboarding process, Drop may request information considered sensitive by your organization. Please only share what you are able to, and note that any information shared in this process will be kept confidential by Drop. Drop’s first onboarding wave will open on June 17th and close on June 28th 2024 at midnight UTC. To apply, validators must simply submit a complete and faithful application via the appropriate form: Wave 1 Drop contributors will review your application and confirm your eligibility to the protocol’s Allow List based on the aforementioned requirements. If you’ve missed the first onboarding wave, make sure to follow @Dropdotmoney on X to be notified of future onboarding waves opening.","s":"2. Apply to join the Allow List during an Onboarding Wave","u":"/validators/onboard","h":"#2-apply-to-join-the-allow-list-during-an-onboarding-wave","p":20},{"i":27,"t":"Once onboarded to the Allow List, your validator will be eligible to receive protocol delegations from Drop. At launch, to balance stake distribution and operational overhead, Drop will delegate to the top 30 validators in the Allow List by voting power. As the protocol grows, the number of delegation slots may increase. To remain in the Allow List, your validator will be expected to maintain a high degree of reliability and performance: Maintain >95% uptime, Maintain a commission rate between 5% and 10% included, Avoid jailing, slashing or tombstoning. Operators that fail to maintain high uptime, or are slashed, jailed or tombstoned will be removed from the Allow List. They can re-apply at the next onboarding wave, once underperformance has been resolved.","s":"3. Maintain performance requirements","u":"/validators/onboard","h":"#3-maintain-performance-requirements","p":20},{"i":29,"t":"Drop protocol can be integrated into external UI or DeFi on Neutron or any other IBC-connected chain. This page describes possible approaches of doing that.","s":"Drop integration","u":"/integrations/overview","h":"","p":28},{"i":31,"t":"It is possible to integrate the Drop protocol in several ways: Use the auto-generated TypeScript client for smart contracts to interact with the Drop protocol. Craft the Drop messages manually and send them to Neutron chain or other supported chains to stake from it using the ibc-hooks or Skip API. (WIP) Use the Drop protocol through the Skip API. Integration with Drop generally consists of 3 actions and several queries. Actions are: staking unstaking request unstaking withdrawal Queries are: instance contracts discovery dASSET denom dASSET balance exchange rate unstacking request status","s":"Overview","u":"/integrations/overview","h":"#overview","p":28},{"i":33,"t":"In case if one is interested in direct interaction with contracts on Neutron chain, you can use the generated TypeScript clients for smart contracts. They allow to make staking and unstaking with the assets that are already on the Neutron chain. All contract methods are covered in autogenerated code using https://github.com/neutron-org/contracts2ts tool. You can find examples of generated code in the https://github.com/hadronlabs-org/drop-contracts/tree/main/integration_tests/src/generated/contractLib repo. This code is generated using https://github.com/hadronlabs-org/drop-contracts/blob/main/integration_tests/src/rebuild-client.ts configuration.","s":"Using TypeScript clients","u":"/integrations/overview","h":"#using-typescript-clients","p":28},{"i":35,"t":"Use the messages templates provided in this doc to send them directly to the contracts. This is especially useful in the case of issuing a transaction from another chain. For example, ATOM staking can be done in a single IBC-transfer that calls Drop contract via ibc-hooks module on Neutron. It must be noted that the approach described here results in dASSET minting on Neutron. It means that after staking with Drop, the user have to do the next action with LST from Neutron chain. To simplify the work one still can use SkipAPI. The process is as follows: https://api-docs.skip.money/reference/getassets endpoint allows getting proper denom of a specific asset on a specific chain https://api-docs.skip.money/reference/getroutev2 endpoint allows building a proper route to transfer an asset to Neutron https://api-docs.skip.money/reference/getmsgsv2 endpoint allows building a message to be issued on the target chain to stake assets with Drop. To do that, one should specify the contract address and message needed in the post_route_handler section (COSMWASMCONTRACTMSGWRAPPER). Here are the examples for staking transactions: Staking ATOM from Cosmos Hub​ Cosmos Hub transaction message: { \"type\": \"cosmos-sdk/MsgTransfer\", \"value\": { \"memo\": \"{\\\"wasm\\\":{\\\"contract\\\":\\\"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\\\",\\\"msg\\\":{\\\"bond\\\":{\\\"receiver\\\":\\\"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\\\"}}}}\", \"receiver\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"sender\": \"cosmos1vlw72wh7rvl2vg4w434a6h9mftsl5vfqxvzvhs\", \"source_channel\": \"channel-569\", \"source_port\": \"transfer\", \"timeout_height\": {}, \"timeout_timestamp\": \"1715100002194956544\", \"token\": { \"amount\": \"200000\", \"denom\": \"uatom\" } } } Cosmos Hub transaction memo: { \"wasm\": { \"contract\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"msg\": { \"bond\": { \"receiver\": \"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\" } } } } Staking ATOM from Osmosis​ Osmosis transaction message: { \"type\": \"cosmos-sdk/MsgTransfer\", \"value\": { \"memo\": \"{\\\"forward\\\":{\\\"channel\\\":\\\"channel-569\\\",\\\"next\\\":{\\\"wasm\\\":{\\\"contract\\\":\\\"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\\\",\\\"msg\\\":{\\\"bond\\\":{\\\"receiver\\\":\\\"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\\\"}}}},\\\"port\\\":\\\"transfer\\\",\\\"receiver\\\":\\\"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\\\",\\\"retries\\\":2,\\\"timeout\\\":1715100123336401403}}\", \"receiver\": \"cosmos1vlw72wh7rvl2vg4w434a6h9mftsl5vfqxvzvhs\", \"sender\": \"osmo1vlw72wh7rvl2vg4w434a6h9mftsl5vfqwh3upz\", \"source_channel\": \"channel-0\", \"source_port\": \"transfer\", \"timeout_height\": {}, \"timeout_timestamp\": \"1715100123336399360\", \"token\": { \"amount\": \"99300\", \"denom\": \"ibc/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2\" } } } Osmosis transaction memo: { \"forward\": { \"channel\": \"channel-569\", \"next\": { \"wasm\": { \"contract\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"msg\": { \"bond\": { \"receiver\": \"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\" } } } }, \"port\": \"transfer\", \"receiver\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"retries\": 2, \"timeout\": 1715100123336401400 } } As you can see, staking from Osmosis besides ibc-hook module requires using of pfm, because ATOM should be transferred to Cosmos Hub first and only after that to Neutron.","s":"Crafting messages manually","u":"/integrations/overview","h":"#crafting-messages-manually","p":28},{"i":37,"t":"SkipAPI integration is work in progress yet and will be available shortly after the launch Instead of manually guiding SkipAPI on how to handle the ASSET (e.g., send to Neutron and stake), simply specify the desired result and let SkipAPI decide on the proper way to convert the assets. This approach is flexible but might have the potential caveat of the dASSET being bought on a DEX instead of being staked.","s":"Direct usage via SkipAPI","u":"/integrations/overview","h":"#direct-usage-via-skipapi","p":28},{"i":40,"t":"The factory contract returns all the other smart contract for a specific instance with the following query: { \"state\": {} } Query result example: { \"core_contract\": \"neutron1elxhch2kul3qk2whxawtfwe0l2ma0snec3fe6j4zp2wftwrhs33q2yzqwy\", \"distribution_contract\": \"neutron1jnre6ef6mlcyfqsu8e9a2wf27farphsrgezlv0n8ezl9vfzdc7vqkmtvpm\", \"puppeteer_contract\": \"neutron1zvk70rw9xk5nvkw3c8ms62n5v9t6zpayfkygn8m5pgwyrqzsjsaq2upegw\", \"rewards_manager_contract\": \"neutron1t0spq2jeef7jvvydlaz4jxga37skrnqk0uuxa5d7nqcrjtnk79lsnfygj3\", \"staker_contract\": \"neutron1qcz9uw5g3vwqmz7qcsmcua3vzps6amrsqrmf7r84xfe76g3ztsrqm82sfy\", \"strategy_contract\": \"neutron1sjeppcavzvect0e5654tl4w06pp9sdx2pmxqy8m4jwv58jlwwv8quv86yy\", \"token_contract\": \"neutron1wgtjgeprg53wthczzlzpg0vrytuvfl9j59lpf87qd3mtj2dq6xysxvwcxd\", \"validators_set_contract\": \"neutron1sq87ct42mza6sjpj9qgkfk3ngyaqc03ykf78z3e5hez68zfs4a5qyxl5pg\", \"withdrawal_manager_contract\": \"neutron1tgw3d229d93rhk3hv68ff7f8zjs9lgk9lv9pkvp8fmt46ja47u0s02xxhg\", \"withdrawal_voucher_contract\": \"neutron1hvr35t4s0r9nrt4taujyu704r4wfynp4ed5dz32pa7xcwzgwr9vs7vu4gy\" } Getting contracts with the TS client: const wallet = await DirectSecp256k1HdWallet.fromMnemonic(\"Mnemonic\", { prefix: \"neutron\", }); const client = await SigningCosmWasmClient.connectWithSigner( \"https://rpc-palvus.pion-1.ntrn.tech:443\", wallet, { gasPrice: GasPrice.fromString(\"0.025untrn\"), } ); const factoryContractClient = new DropFactory.Client( client, \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\" ); const res = await factoryContractClient.queryState(); console.log(res);","s":"Instance contracts discovery","u":"/integrations/overview","h":"#instance-contracts-discovery","p":28},{"i":42,"t":"The denom is stored in the token contract's config which can be obtained with the following query: { \"config\": {} } Query result example: { \"core_address\": \"neutron1elxhch2kul3qk2whxawtfwe0l2ma0snec3fe6j4zp2wftwrhs33q2yzqwy\", \"denom\": \"factory/neutron1wgtjgeprg53wthczzlzpg0vrytuvfl9j59lpf87qd3mtj2dq6xysxvwcxd/drop\" }","s":"dASSET denom","u":"/integrations/overview","h":"#dasset-denom","p":28},{"i":44,"t":"Since dASSET is a native denom, you can get the dASSET balance by querying the bank module.","s":"dASSET balance","u":"/integrations/overview","h":"#dasset-balance","p":28},{"i":46,"t":"Exchange rate tells how many ASSET tokens correspond to single dASSET token. Thus, while Drop protocol auto-compounds staking rewards, this number is growing with time (it can possibly decrease because of slashing events). Exchange rate is queried from the core contract with the following query: { \"exchange_rate\": {} } The output is a float number represented as a string. Example of using the client code: const exchangeRate = parseFloat(await coreContractClient.queryExchangeRate());","s":"Exchange rate","u":"/integrations/overview","h":"#exchange-rate","p":28},{"i":48,"t":"Withdrawal NFT represents the promise to return the user ASSET tokens once unbonding period is over. The user receives an NFT once they provide dASSET to unstake. Here's the example on how to get the withdrawal NFT info from via generated client: const vouchers = await withdrawalVoucherContractClient.queryTokens({ owner: neutronUserAddress, });","s":"Withdrawal NFT info","u":"/integrations/overview","h":"#withdrawal-nft-info","p":28},{"i":50,"t":"Any action is represented as exchanging one token for another: Staking is an exchange of ASSET for dASSET. Unstaking request is an exchange of dASSET for withdrawal NFT. Unstaking withdrawal is an exchange of withdrawal NFT for ASSET. NB: there is a planned plug in integration which will allow to skip the withdrawal step. The idea behind it that the user can provide an additional gas token and lock their withdrawal NFT in the special contract that will process the withdrawal for them automatically. So in the future it will be possible to unstake without the need to withdraw assets manually.","s":"Actions","u":"/integrations/overview","h":"#actions","p":28},{"i":52,"t":"Staking with Drop is done by the following message to the core contract with assets to stake attached, it is possible to omit receiver field, in this case sender's address will be used: { \"bond\": { \"receiver\": \"neutron1receiveraddress\" } } For specifying the staking referral see Referral program integration. Example of using the TS client: const bondTxResult = await coreContractClient.bond( neutronUserAddress, {}, 1.6, undefined, [ { amount: \"500000\", denom: neutronIBCDenom, }, ] ); Staking of LSM shares is done with the very same message. The only difference is the asset attached: instead of being native staking token, it should be LSM share IBC transferred to Neutron. For more details, see Onboarding from native staking.","s":"Staking","u":"/integrations/overview","h":"#staking","p":28},{"i":54,"t":"To make an unstaking request, user should send the dASSET to the core contract with the following message: { \"unbond\": {} } Example of using the TS client: let unBondTxResult = await coreContractClient.unbond( neutronUserAddress, 1.6, undefined, [ { amount: Math.floor(200_000 / exchangeRate).toString(), denom: \"token_factory_denom\", }, ] ); After that, user receives a withdrawal voucher that they can use to withdraw their coins after the unbonding period.","s":"Unstaking request","u":"/integrations/overview","h":"#unstaking-request","p":28},{"i":56,"t":"Withdrawal of the ASSET implies sending the NFT to withdrawal_manager with the following message attached: { \"withdraw\": {} } Example of using the TS client: const voucherWithdrawTxResult = await voucherContractClient.sendNft( neutronUserAddress, { token_id: tokenId, contract: withdrawalManagerContractAddress, msg: Buffer.from( JSON.stringify({ withdraw: {}, }) ).toString(\"base64\"), } );","s":"Withdrawal","u":"/integrations/overview","h":"#withdrawal","p":28},{"i":58,"t":"This section provides an in-depth overview of the Drop protocol's approach to validator set management and decentralization. Validator Set Management: Discusses decentralization when applied to PoS validator sets, and how the Drop protocol contributes to the resilience of supported networks. Receive Delegations From Drop: A step-by-step guide for validators looking to receive delegations from Drop protocol. Future Directions: Discusses future directions the Drop DAO may implement to improve the performance and decentralization of its validator sets. FAQ: Provides simple answers to the most frequently asked questions.","s":"Overview","u":"/validators/overview","h":"","p":57},{"i":60,"t":"How to signup to be notified of the next onboarding wave? Currently, the easiest way to be notified of the next onboarding wave is to follow @Dropdotmoney on X. Enabling notifications can help ensure you don’t miss an announcement. How is stake distributed across validators? In Drop V1, protocol stake is distributed evenly across the top 30 validators on the Allow List. How do reward for operators work? On CometBFT networks, validators set a commission parameter which enables them to receive a portion of the staking rewards for their infrastructure services. Drop delegates to validators with commissions up to 10%. How is stake allocated when new validators join the set? When new validators join the set, they are prioritized to receive new delegations until they’ve received an equivalent amount of protocol delegations as the existing validators, at which point the even distribution resumes. What happens if my validator is removed from the Allow List? When a validator is removed from the Allow List, its weight is set to 0. This stops new protocol delegations from being made to the validator, but enables the protocol to continue processing undelegations from the validator. As a result, the validator does not instantly lose the entire delegation. Rather, it is gradually removed over time, helping ensure a smooth offboarding experience.","s":"Validator FAQ","u":"/validators/faq","h":"","p":59},{"i":62,"t":"Post-launch, the Drop DAO will continue to evolve and enhance its validator set management policy. The directions outlined below detail the proposed areas of focus for the protocol's development, aimed at improving decentralization, performance, and governance participation within CometBFT blockchains.","s":"Future directions","u":"/validators/roadmap","h":"","p":61},{"i":64,"t":"As Drop's share of the total stake increases, additional onboarding rounds may be conducted by the Drop DAO to achieve the following objectives: Meaningful Delegations: Ensure that delegations are substantial enough to significantly enhance network decentralization and resilience by supporting minority setups and validators. Preventing Concentration: Maintain delegations at a size that prevents excessive concentration of voting power among a limited number of operators. During each onboarding wave, newly onboarded validators would receive delegations until their stake is balanced relative to the rest of the set.","s":"Validator Set Expansion","u":"/validators/roadmap","h":"#validator-set-expansion","p":61},{"i":66,"t":"Drop contributors will collaborate with network communities and validators to enhance overall performance. As performance benchmarks are met, these requirements may be incrementally increased to lock in the improvements.","s":"Improve Validator Performance","u":"/validators/roadmap","h":"#improve-validator-performance","p":61},{"i":68,"t":"To bolster network performance, Drop contributors will work with validators to gradually raise performance standards. For instance, the Drop DAO may: Introduce limits on consecutive downtime. Encourage faster node recovery after scheduled or emergency upgrades. Encourage governance participation.","s":"Performance Requirements","u":"/validators/roadmap","h":"#performance-requirements","p":61},{"i":70,"t":"The Drop DAO may transition the enforcement of performance requirements to a fully trustless, on-chain mechanism using Neutron’s Interchain Queries capabilities. This transition would enable the protocol to autonomously monitor validator performance and enforce standards on its delegations.","s":"Automation","u":"/validators/roadmap","h":"#automation","p":61},{"i":72,"t":"The Drop DAO may implement scaling delegations that dynamically adjust based on validator performance. For instance, if a validator shows signs of underperformance, delegations would be gradually redirected to other performing validators to minimize the impact of jailing or slashing on the protocol’s delegators. When performance stabilizes at a high level, delegations would revert to their original distribution.","s":"Scaling Delegations","u":"/validators/roadmap","h":"#scaling-delegations","p":61},{"i":74,"t":"Achieving practical decentralization involves mitigating off-chain single points of failure, such as geography, jurisdiction, and ISP choice, to enhance network resilience. A decentralization dashboard maintained by Observatory.zone","s":"Introduce Weighted Delegations to Sponsor Decentralization and Governance Participation","u":"/validators/roadmap","h":"#introduce-weighted-delegations-to-sponsor-decentralization-and-governance-participation","p":61},{"i":76,"t":"To incentivize validators to contribute to the network's decentralization and resilience, the Drop DAO may implement a weighted delegation system. Such a system would allocate a higher share of delegations to validators who enhance network diversity and resilience, while those who do not would receive a smaller share.","s":"Weighted Delegations","u":"/validators/roadmap","h":"#weighted-delegations","p":61},{"i":78,"t":"The Drop DAO may develop scorecards in collaboration with network communities and validators to assess and reward contributions to decentralization. These scorecards would consider factors such as overall voting power, geographic distribution, governance participation, infrastructure, and key signing practices.","s":"Decentralization Scorecards","u":"/validators/roadmap","h":"#decentralization-scorecards","p":61},{"i":80,"t":"Stake Preferred Baseline Discouraged Stake Validator has been in the active set for 3 months and is in the bottom 33% of voting power rank. Validator is among the bottom 52% of voting power. Validator is among the top 48% of voting power. Governance Participation Validator has voted on > 80% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes). Validator has voted on > 50% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes). Validator has voted on < 50% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes). Geography Operations are in a location and jurisdiction not represented in the set. Operations are in a location and jurisdiction underrepresented in the set. Operations are in a location and jurisdiction overrepresented in the set. Infrastructure Operator relies on bare-metal infrastructure. Operator relies on underrepresented ISPs. Operator relies on overrepresented ISPs. Signing Setup Operator uses underrepresented signing practices (e.g., TMKS, Horcrux, etc.). Operator uses accepted signing setups (e.g., TMKS, Horcrux, etc.). Operator uses dominant signing setups (e.g., TMKS, Horcrux, etc.). By implementing these strategies, the Drop DAO aims to continually improve the resilience, performance, and decentralization of the networks it supports, ensuring a robust and secure blockchain ecosystem.","s":"Example Scorecard","u":"/validators/roadmap","h":"#example-scorecard","p":61},{"i":83,"t":"Decentralization is a core principle of the blockchain industry, it is what makes blockchains more than distributed databases. Decentralization ensures that no single entity has arbitrary control over the blockchain, enhancing its resistance to censorship and centralized decision-making power. While decentralization encompasses various trade-offs, this document will focus on its application to infrastructure and stake distribution within Delegated Proof of Stake (DPoS) networks, such as those built on CometBFT.","s":"What is Decentralization and Why Does It Matter?","u":"/validators/valset","h":"#what-is-decentralization-and-why-does-it-matter","p":81},{"i":85,"t":"A common metric for assessing the decentralization of a CometBFT blockchain is the Halt Threshold, or Nakamoto coefficient. This metric represents the minimum number of validators controlling at least 33% of the voting power, whose collaboration could halt the blockchain. For the sake of illustration, here are the halt thresholds of notable CometBFT networks as of June 2024: Network Cosmos Hub Celestia dYdX Halt Threshold 7 validators 9 validators 3 validators However, the distribution of voting power itself is not the sole point of failure of a delegated proof-of-stake network. When nodes are concentrated within specific jurisdictions, datacenters or ISP companies, networks become increasingly vulnerable to failures and policy changes. For instance, as of June 2024, roughly 44% of Kyve’s nodes were running on Hetzner, and 75% of the voting power on dYdX was located in Japan. In these conditions, a ban on cryptocurrency or validator software by a region, country or even a company could harm, halt or even lead to the capture of the network. Visual representation of the voting power shares of Cosmos Hub validators on June 15th, 2024 by Smartstake.","s":"The Current State of Decentralization","u":"/validators/valset","h":"#the-current-state-of-decentralization","p":81},{"i":87,"t":"Several factors contribute to the current state of decentralization, or relative lack thereof: Unrealistic Expectations on Delegators: dPoS often assumes that market forces will sufficiently incentivize delegators to perform the deep due diligence to collectively optimize a network’s delegation through their delegations, when in reality, few market participants have the time and resources to conduct such analysis, and the market as a whole does not reward decentralization in absolute. Vertical Integration: Affiliated validators, such as those run by centralized exchanges, often accumulate a large portion of the stake through vertical integration. In other words, they are able to leverage their product’s captive user base to drive massive delegations to their validators. Token Distribution: Typically, token distributions in the Interchain are top-heavy, meaning that most of the tokens tend to be owned by a few hundred addresses. Larger validators possess more resources and credibility, enabling them to secure delegations from institutional holders more effectively than smaller, community-oriented validators.","s":"Why Is It This Way?","u":"/validators/valset","h":"#why-is-it-this-way","p":81},{"i":89,"t":"Drop introduces several mechanisms to enhance decentralization and strengthen the network: Broad Delegation: Drop delegates to a large number of validators, increasing the network’s halt threshold and reducing the disparity between the largest validators and the rest. On-Chain Validator Set Management: Drop provides advanced tools such as weighted delegations to sponsor less dominant but high-quality validators, aiding in a more balanced stake distribution. Network Effects: By integrating with centralized exchanges, custodians, and other providers, Drop reroutes otherwise captive stake to be more broadly delegated across the validator set. Dedication: The Drop DAO is incentivized to develop on-chain analytics tools and delegation frameworks that enhance the resilience, decentralization, and security of the network and its delegations. Off-Chain Information Gathering: Through Drop’s onboarding process, DAO contributors gather valuable off-chain information on validators’ practices, infrastructure, geographic distribution, and jurisdictional contexts. This data, which is often not publicly available and is kept confidential by Drop contributors, enables the creation of delegation frameworks that maximize network resilience. By employing these strategies, Drop directly contributes to the robustness and decentralization of CometBFT blockchains, ensuring a more secure and reliable network infrastructure.","s":"How Drop 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Participation","u":"/validators/roadmap","h":"#introduce-weighted-delegations-to-sponsor-decentralization-and-governance-participation","p":61},{"i":75,"t":"Weighted Delegations","u":"/validators/roadmap","h":"#weighted-delegations","p":61},{"i":77,"t":"Decentralization Scorecards","u":"/validators/roadmap","h":"#decentralization-scorecards","p":61},{"i":79,"t":"Example Scorecard","u":"/validators/roadmap","h":"#example-scorecard","p":61},{"i":84,"t":"What is Decentralization and Why Does It Matter?","u":"/validators/valset","h":"#what-is-decentralization-and-why-does-it-matter","p":83},{"i":86,"t":"The Current State of Decentralization","u":"/validators/valset","h":"#the-current-state-of-decentralization","p":83},{"i":88,"t":"Why Is It This Way?","u":"/validators/valset","h":"#why-is-it-this-way","p":83},{"i":90,"t":"How Drop 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how Drop protocol manages cross-chain delegations and build integration and dApps with dAssets. Drop is a cross-chain liquid staking protocol built as an Integrated Application on the Neutron network. Drop is a trustless protocol consisting of CosmWasm contracts controlling the flow of assets between multiple blockchains using IBC, Interchain Transactions and Interchain Queries. Upon receipt of supported assets, the protocol mints liquid staking receipt tokens using the Token Factory standard. For liquid staking or referral integrations, see the Integration guide.","s":"Introduction","u":"/","h":"","p":1},{"i":5,"t":"Current Cosmos Hub Drop testnet instance uses theta-testnet-001 testnet.","s":"Cosmos Hub Instance","u":"/deployments/testnet","h":"#cosmos-hub-instance","p":3},{"i":7,"t":"Contract Address factory neutron1yumnxj30nyxhvv4zdq963vk7v63mfjg5jghawxrgj4cc0fja829qugzjpt core_contract neutron1ja8hvq3yarz6yyman9qfqkkkvyp6neykka3grfznt40w53lrm8tsftjy9a distribution_contract neutron1d6rq2q993atet3n88erdjm774yun2y5e9fs8g8luy8a6dywsz9yq803eu2 puppeteer_contract neutron1y2z92k32qwxpdn3psjju7eqt86eddlhtk7cjz4nky95xhsu005qqgyfcqf rewards_manager_contract neutron1g3n8re446lu62yfwfzsn7m6fwwl0amcke65hn2t0mjuzvfpp2dxqcczuvr rewards_pump_contract neutron1qdek37v7r3vlrxwa297x4vjzlrmyzu6ymzwa5fsu6q4y3hld635sf98ss6 staker_contract neutron14aegmcv9ydtkkywmj9s3agewq4n7p0kdnz6mkrsqk80w7axyun0szs5n8f strategy_contract neutron1rs7g9005me78r0qyzyc5el9qdyv4fs9r8audr876jl7x5r3hs07s00wmqy token_contract neutron16l0qfrrahy5mve5x9nnw6zs9vv30k7rk55h6aaypq88ljwg57uxsxcg6y6 validators_set_contract neutron1sq7a7kjyla0lyfdv44hct2kgf7efnw4g4flvzl9zf3exypwzuynqq28sgt unbonding_pump_contract neutron1vmv7swhz3q25t2qa58wtrqkkn9nreke9u9h70azl6wlcq0pr5utqyplrqk withdrawal_manager_contract neutron1mlq0v5rqv03dvrl3vlsgffzsq7m84m3ffv4yqf3tez69w930x9dszeddlx withdrawal_voucher_contract neutron1zcnkcdqs76zfcuewtskjnappumqk84nf2vrw5hctf8fqsgcs27mqkpnapq","s":"Contracts","u":"/deployments/testnet","h":"#contracts","p":3},{"i":9,"t":"Symbol Denom ATOM ibc/9DF365E2C0EF4EA02FA771F638BB9C0C830EFCD354629BDC017F79B348B4E989 dATOM factory/neutron16l0qfrrahy5mve5x9nnw6zs9vv30k7rk55h6aaypq88ljwg57uxsxcg6y6/udatom","s":"Denoms","u":"/deployments/testnet","h":"#denoms","p":3},{"i":11,"t":"Contract Address puppeteer_contract cosmos1r0ts4l7c26jrhx8ev403ylqrfk0j7z0jath52wh6t59a4drxj50qgqtlg4 unbonding_pump_contract cosmos1xfjwzvw9mv33atelre5vuhv7w48yg7nvyqwl2cf9zfjpkktmevgs7ks0a0 rewards_pump_contract cosmos1vkngfztggkzxzwrer005n96r0f2saa3xruqfkay9z93tnp76d0ksa5m0zg","s":"ICA addresses","u":"/deployments/testnet","h":"#ica-addresses","p":3},{"i":13,"t":"Apps integrating Drop protocol can be interested in either Droplets program or Revenue share program. Doing that is as easy as specifying the referral address in the staking message: { \"bond\": { \"receiver\": \"neutron1receiveraddress\", \"ref\": \"neutron1referreraddress\" } } Staking messages containing referral address will be processed according to the program address participates in.","s":"Referral program integration","u":"/integrations/referral","h":"","p":12},{"i":15,"t":"How to signup to be notified of the next onboarding wave? Currently, the easiest way to be notified of the next onboarding wave is to follow @Dropdotmoney on X. Enabling notifications can help ensure you don’t miss an announcement. How is stake distributed across validators? In Drop V1, protocol stake is distributed evenly across the top 30 validators on the Allow List. How do reward for operators work? On CometBFT networks, validators set a commission parameter which enables them to receive a portion of the staking rewards for their infrastructure services. Drop delegates to validators with commissions up to 10%. How is stake allocated when new validators join the set? When new validators join the set, they are prioritized to receive new delegations until they’ve received an equivalent amount of protocol delegations as the existing validators, at which point the even distribution resumes. What happens if my validator is removed from the Allow List? When a validator is removed from the Allow List, its weight is set to 0. This stops new protocol delegations from being made to the validator, but enables the protocol to continue processing undelegations from the validator. As a result, the validator does not instantly lose the entire delegation. Rather, it is gradually removed over time, helping ensure a smooth offboarding experience.","s":"Validator FAQ","u":"/validators/faq","h":"","p":14},{"i":17,"t":"At the moment of writing, LSM is only available on Cosmos Hub. Liquidity Staking Module (LSM) allows users to transfer their staked assets from one address to another without unstaking them. To learn more about it, visit the repository: https://github.com/iqlusioninc/liquidity-staking-module. To achieve that, LSM mints special tokens that represent staked assets ownership. One can \"tokenize\" their staked assets and by sending them transfer an ownership to other user or protocol. These tokens are called \"LSM shares\" below for simplicity. Each LSM share is represented by a unique denom. It means that one can send a half of the share to someone but two different shares aren't fungible with each other. Drop can accept such shares and mint dASSET based on them. I.e., if one has already natively staked tokens (delegated to a validator), they can tokenize their shares, IBC transfer them to Neutron and \"stake\" with Drop the same way as ASSET itself. Under the hood it means that the ownership over those staked assets is transferred to Drop protocol and user gets respective amount of dASSET in exchange.","s":"Onboarding from native staking","u":"/integrations/lsm_staking","h":"","p":16},{"i":19,"t":"The first action described here is a general tokenized creation. An example of the message: { \"@type\": \"/cosmos.staking.v1beta1.MsgTokenizeShares\", \"delegator_address\": \"cosmos_delegator_address\", \"validator_address\": \"cosmosvaloper_validator_address\", \"amount\": { \"denom\": \"denom\", \"amount\": \"1234\" }, \"tokenized_share_owner\": \"cosmos_tokenized_share_owner\" } Where: cosmos_delegator_address is an address of the user that currently has staked assets validator_address is the address of validator assets are delegated to tokenized_share_owner is the address which will be getting rewards. Regardless of the current owner of tokenized share tokens, the rewards will be distributed to the address specified here. It's useful for example when assets are IBC transferred and previous owner still gets rewards instead of IBC module. In order to reveal how many tokens the user have staked use this query. Once the operation above is performed, a new denom is created and the user gets new minted tokens that represent staked tokens. The denom has the following structure: cosmosvaloper1**************************************/123, so it consists of the validator address and an index of this LSM share.","s":"Tokenized share creation","u":"/integrations/lsm_staking","h":"#tokenized-share-creation","p":16},{"i":21,"t":"That tokenized share can be staked with Drop only if it was produced by validatator from the Drop validator list. To get this list you need to do the following: Query core contract config: { \"config\": {} } Get validator set contract from the result via \".validators_set_contract\" field Query validators from validator set contract with the following query: { \"validators\": {} } The example of a result: { \"data\": [ { \"valoper_address\": \"cosmosvaloper1gh4vzw9wsfgl2h37qqnetet0m4wrzm7v7x3j9x\", \"weight\": 10, \"last_processed_remote_height\": null, \"last_processed_local_height\": null, \"last_validated_height\": null, \"last_commission_in_range\": null, \"uptime\": \"0\", \"tombstone\": false, \"jailed_number\": null, \"init_proposal\": null, \"total_passed_proposals\": 0, \"total_voted_proposals\": 0 }, { \"valoper_address\": \"cosmosvaloper1rndyjagfg0nsedl2uy5n92vssn8aj5n67t0nfx\", \"weight\": 10, \"last_processed_remote_height\": null, \"last_processed_local_height\": null, \"last_validated_height\": null, \"last_commission_in_range\": null, \"uptime\": \"0\", \"tombstone\": false, \"jailed_number\": null, \"init_proposal\": null, \"total_passed_proposals\": 0, \"total_voted_proposals\": 0 } ] }","s":"Drop LSM staking restrictions","u":"/integrations/lsm_staking","h":"#drop-lsm-staking-restrictions","p":16},{"i":23,"t":"After one created a tokenized share on Cosmos Hub, it can be staked with Drop. As well as with ATOM, transfer and stake can be done in one transaction (thankfully to IBC hooks): { \"type\": \"cosmos-sdk/MsgTransfer\", \"value\": { \"memo\": \"{\\\"wasm\\\":{\\\"contract\\\":\\\"neutron1_core_contract\\\",\\\"msg\\\":{\\\"bond\\\":{}}}}\", \"receiver\": \"neutron1_core_contract\", \"sender\": \"cosmos1_sender\", \"source_channel\": \"channel-123\", \"source_port\": \"transfer\", \"timeout_height\": \"0\", \"timeout_timestamp\": \"12345678901234567890\", \"token\": { \"amount\": \"1234\", \"denom\": \"cosmosvaloper1**************************************/123\" } } } Unfortunately, due to the nature of LSM shares, one cannot do LSM share creation, transfer and staking with Drop in one transaction. The reason of it is that for the second part (transfer/stake) we need a denom of the LSM share. This denom contains the unique index of the LSM share that cannot be predicted. Thus, to convert native staking to liquid staking, we need at least 2 transactions. Where: source_channel is the Cosmos Hub-Neutron channel (you can use \"relayers\" page on Mintscan to get it) timeout_timestamp is an IBC timeout. You can use 10 minutes by default and the following JavaScript snippet to calculate it: Math.floor(Date.now() / 1000) * 1e9 + 10 * 60 * 1e9; Alternatively, one can split the operations in two. In this case, it will be regular IBC transfer for the LSM share, and regular staking with Drop. LSM share staking process is the very same as ASSET staking, but the coin attached to the message is an LSM share IBC-transferred to Neutron.","s":"IBC transfer and staking LSM share with Drop","u":"/integrations/lsm_staking","h":"#ibc-transfer-and-staking-lsm-share-with-drop","p":16},{"i":25,"t":"To receive protocol delegations from Drop, validators must first onboard to the protocol’s Allow List by applying during an onboarding wave. Onboarding waves are conducted on an ad-hoc basis to balance validator sustainability with protocol decentralization. While Drop might conduct onboarding wave when a new network is onboarded, Drop’s onboarding waves are not network-specific. As long as they continue to meet Drop’s requirement on each network, validators that are onboarded to the protocol’s Allow List are eligible for delegations across all supported network. Make sure to follow @Dropdotmoney on X to be notified when an onboarding wave opens. During an onboarding wave, validators must complete a three step process: Ensure they meet Drop’s requirements Apply to join the Allow List Maintain performance requirements","s":"Receive delegations from Drop","u":"/validators/onboard","h":"","p":24},{"i":27,"t":"To be eligible for protocol delegations, validators must continue to meet the following requirements: Operate their own infrastructure Have commissions set between 5% and 10% included Maintain >95% uptime over the last 90 days period Avoid jailing, slashing or tombstoning. Validators operated by or affiliated with Centralized Exchanges or Custodian service providers are not eligible to Drop’s protocol delegations.","s":"1. Ensure that your validator meets Drop’s requirements","u":"/validators/onboard","h":"#1-ensure-that-your-validator-meets-drops-requirements","p":24},{"i":29,"t":"💡 As part of the onboarding process, Drop may request information considered sensitive by your organization. Please only share what you are able to, and note that any information shared in this process will be kept confidential by Drop. Drop’s first onboarding wave will open on June 17th and close on June 28th 2024 at midnight UTC. To apply, validators must simply submit a complete and faithful application via the appropriate form: Wave 1 Drop contributors will review your application and confirm your eligibility to the protocol’s Allow List based on the aforementioned requirements. If you’ve missed the first onboarding wave, make sure to follow @Dropdotmoney on X to be notified of future onboarding waves opening.","s":"2. Apply to join the Allow List during an Onboarding Wave","u":"/validators/onboard","h":"#2-apply-to-join-the-allow-list-during-an-onboarding-wave","p":24},{"i":31,"t":"Once onboarded to the Allow List, your validator will be eligible to receive protocol delegations from Drop. At launch, to balance stake distribution and operational overhead, Drop will delegate to the top 30 validators in the Allow List by voting power. As the protocol grows, the number of delegation slots may increase. To remain in the Allow List, your validator will be expected to maintain a high degree of reliability and performance: Maintain >95% uptime, Maintain a commission rate between 5% and 10% included, Avoid jailing, slashing or tombstoning. Operators that fail to maintain high uptime, or are slashed, jailed or tombstoned will be removed from the Allow List. They can re-apply at the next onboarding wave, once underperformance has been resolved.","s":"3. Maintain performance requirements","u":"/validators/onboard","h":"#3-maintain-performance-requirements","p":24},{"i":33,"t":"Drop protocol can be integrated into external UI or DeFi on Neutron or any other IBC-connected chain. This page describes possible approaches of doing that.","s":"Drop integration","u":"/integrations/overview","h":"","p":32},{"i":35,"t":"It is possible to integrate the Drop protocol in several ways: Use the auto-generated TypeScript client for smart contracts to interact with the Drop protocol. Craft the Drop messages manually and send them to Neutron chain or other supported chains to stake from it using the ibc-hooks or Skip API. (WIP) Use the Drop protocol through the Skip API. Integration with Drop generally consists of 3 actions and several queries. Actions are: staking unstaking request unstaking withdrawal Queries are: instance contracts discovery dASSET denom dASSET balance exchange rate unstacking request status","s":"Overview","u":"/integrations/overview","h":"#overview","p":32},{"i":37,"t":"In case if one is interested in direct interaction with contracts on Neutron chain, you can use the generated TypeScript clients for smart contracts. They allow to make staking and unstaking with the assets that are already on the Neutron chain. All contract methods are covered in autogenerated code using https://github.com/neutron-org/contracts2ts tool. You can find examples of generated code in the https://github.com/hadronlabs-org/drop-contracts/tree/main/integration_tests/src/generated/contractLib repo. This code is generated using https://github.com/hadronlabs-org/drop-contracts/blob/main/integration_tests/src/rebuild-client.ts configuration.","s":"Using TypeScript clients","u":"/integrations/overview","h":"#using-typescript-clients","p":32},{"i":39,"t":"Use the messages templates provided in this doc to send them directly to the contracts. This is especially useful in the case of issuing a transaction from another chain. For example, ATOM staking can be done in a single IBC-transfer that calls Drop contract via ibc-hooks module on Neutron. It must be noted that the approach described here results in dASSET minting on Neutron. It means that after staking with Drop, the user have to do the next action with LST from Neutron chain. To simplify the work one still can use SkipAPI. The process is as follows: https://api-docs.skip.money/reference/getassets endpoint allows getting proper denom of a specific asset on a specific chain https://api-docs.skip.money/reference/getroutev2 endpoint allows building a proper route to transfer an asset to Neutron https://api-docs.skip.money/reference/getmsgsv2 endpoint allows building a message to be issued on the target chain to stake assets with Drop. To do that, one should specify the contract address and message needed in the post_route_handler section (COSMWASMCONTRACTMSGWRAPPER). Here are the examples for staking transactions: Staking ATOM from Cosmos Hub​ Cosmos Hub transaction message: { \"type\": \"cosmos-sdk/MsgTransfer\", \"value\": { \"memo\": \"{\\\"wasm\\\":{\\\"contract\\\":\\\"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\\\",\\\"msg\\\":{\\\"bond\\\":{\\\"receiver\\\":\\\"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\\\"}}}}\", \"receiver\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"sender\": \"cosmos1vlw72wh7rvl2vg4w434a6h9mftsl5vfqxvzvhs\", \"source_channel\": \"channel-569\", \"source_port\": \"transfer\", \"timeout_height\": {}, \"timeout_timestamp\": \"1715100002194956544\", \"token\": { \"amount\": \"200000\", \"denom\": \"uatom\" } } } Cosmos Hub transaction memo: { \"wasm\": { \"contract\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"msg\": { \"bond\": { \"receiver\": \"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\" } } } } Staking ATOM from Osmosis​ Osmosis transaction message: { \"type\": \"cosmos-sdk/MsgTransfer\", \"value\": { \"memo\": \"{\\\"forward\\\":{\\\"channel\\\":\\\"channel-569\\\",\\\"next\\\":{\\\"wasm\\\":{\\\"contract\\\":\\\"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\\\",\\\"msg\\\":{\\\"bond\\\":{\\\"receiver\\\":\\\"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\\\"}}}},\\\"port\\\":\\\"transfer\\\",\\\"receiver\\\":\\\"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\\\",\\\"retries\\\":2,\\\"timeout\\\":1715100123336401403}}\", \"receiver\": \"cosmos1vlw72wh7rvl2vg4w434a6h9mftsl5vfqxvzvhs\", \"sender\": \"osmo1vlw72wh7rvl2vg4w434a6h9mftsl5vfqwh3upz\", \"source_channel\": \"channel-0\", \"source_port\": \"transfer\", \"timeout_height\": {}, \"timeout_timestamp\": \"1715100123336399360\", \"token\": { \"amount\": \"99300\", \"denom\": \"ibc/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2\" } } } Osmosis transaction memo: { \"forward\": { \"channel\": \"channel-569\", \"next\": { \"wasm\": { \"contract\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"msg\": { \"bond\": { \"receiver\": \"neutron1vlw72wh7rvl2vg4w434a6h9mftsl5vfqzntwdh\" } } } }, \"port\": \"transfer\", \"receiver\": \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\", \"retries\": 2, \"timeout\": 1715100123336401400 } } As you can see, staking from Osmosis besides ibc-hook module requires using of pfm, because ATOM should be transferred to Cosmos Hub first and only after that to Neutron.","s":"Crafting messages manually","u":"/integrations/overview","h":"#crafting-messages-manually","p":32},{"i":41,"t":"SkipAPI integration is work in progress yet and will be available shortly after the launch Instead of manually guiding SkipAPI on how to handle the ASSET (e.g., send to Neutron and stake), simply specify the desired result and let SkipAPI decide on the proper way to convert the assets. This approach is flexible but might have the potential caveat of the dASSET being bought on a DEX instead of being staked.","s":"Direct usage via SkipAPI","u":"/integrations/overview","h":"#direct-usage-via-skipapi","p":32},{"i":44,"t":"The factory contract returns all the other smart contract for a specific instance with the following query: { \"state\": {} } Query result example: { \"core_contract\": \"neutron1elxhch2kul3qk2whxawtfwe0l2ma0snec3fe6j4zp2wftwrhs33q2yzqwy\", \"distribution_contract\": \"neutron1jnre6ef6mlcyfqsu8e9a2wf27farphsrgezlv0n8ezl9vfzdc7vqkmtvpm\", \"puppeteer_contract\": \"neutron1zvk70rw9xk5nvkw3c8ms62n5v9t6zpayfkygn8m5pgwyrqzsjsaq2upegw\", \"rewards_manager_contract\": \"neutron1t0spq2jeef7jvvydlaz4jxga37skrnqk0uuxa5d7nqcrjtnk79lsnfygj3\", \"staker_contract\": \"neutron1qcz9uw5g3vwqmz7qcsmcua3vzps6amrsqrmf7r84xfe76g3ztsrqm82sfy\", \"strategy_contract\": \"neutron1sjeppcavzvect0e5654tl4w06pp9sdx2pmxqy8m4jwv58jlwwv8quv86yy\", \"token_contract\": \"neutron1wgtjgeprg53wthczzlzpg0vrytuvfl9j59lpf87qd3mtj2dq6xysxvwcxd\", \"validators_set_contract\": \"neutron1sq87ct42mza6sjpj9qgkfk3ngyaqc03ykf78z3e5hez68zfs4a5qyxl5pg\", \"withdrawal_manager_contract\": \"neutron1tgw3d229d93rhk3hv68ff7f8zjs9lgk9lv9pkvp8fmt46ja47u0s02xxhg\", \"withdrawal_voucher_contract\": \"neutron1hvr35t4s0r9nrt4taujyu704r4wfynp4ed5dz32pa7xcwzgwr9vs7vu4gy\" } Getting contracts with the TS client: const wallet = await DirectSecp256k1HdWallet.fromMnemonic(\"Mnemonic\", { prefix: \"neutron\", }); const client = await SigningCosmWasmClient.connectWithSigner( \"https://rpc-palvus.pion-1.ntrn.tech:443\", wallet, { gasPrice: GasPrice.fromString(\"0.025untrn\"), } ); const factoryContractClient = new DropFactory.Client( client, \"neutron15lp29w5vtntsgecwxp5qx0m7tka6km885pcls4e4ule6yz6dhvqstukrvu\" ); const res = await factoryContractClient.queryState(); console.log(res);","s":"Instance contracts discovery","u":"/integrations/overview","h":"#instance-contracts-discovery","p":32},{"i":46,"t":"The denom is stored in the token contract's config which can be obtained with the following query: { \"config\": {} } Query result example: { \"core_address\": \"neutron1elxhch2kul3qk2whxawtfwe0l2ma0snec3fe6j4zp2wftwrhs33q2yzqwy\", \"denom\": \"factory/neutron1wgtjgeprg53wthczzlzpg0vrytuvfl9j59lpf87qd3mtj2dq6xysxvwcxd/drop\" }","s":"dASSET denom","u":"/integrations/overview","h":"#dasset-denom","p":32},{"i":48,"t":"Since dASSET is a native denom, you can get the dASSET balance by querying the bank module.","s":"dASSET balance","u":"/integrations/overview","h":"#dasset-balance","p":32},{"i":50,"t":"Exchange rate tells how many ASSET tokens correspond to single dASSET token. Thus, while Drop protocol auto-compounds staking rewards, this number is growing with time (it can possibly decrease because of slashing events). Exchange rate is queried from the core contract with the following query: { \"exchange_rate\": {} } The output is a float number represented as a string. Example of using the client code: const exchangeRate = parseFloat(await coreContractClient.queryExchangeRate());","s":"Exchange rate","u":"/integrations/overview","h":"#exchange-rate","p":32},{"i":52,"t":"Withdrawal NFT represents the promise to return the user ASSET tokens once unbonding period is over. The user receives an NFT once they provide dASSET to unstake. Here's the example on how to get the withdrawal NFT info from via generated client: const vouchers = await withdrawalVoucherContractClient.queryTokens({ owner: neutronUserAddress, });","s":"Withdrawal NFT info","u":"/integrations/overview","h":"#withdrawal-nft-info","p":32},{"i":54,"t":"Any action is represented as exchanging one token for another: Staking is an exchange of ASSET for dASSET. Unstaking request is an exchange of dASSET for withdrawal NFT. Unstaking withdrawal is an exchange of withdrawal NFT for ASSET. NB: there is a planned plug in integration which will allow to skip the withdrawal step. The idea behind it that the user can provide an additional gas token and lock their withdrawal NFT in the special contract that will process the withdrawal for them automatically. So in the future it will be possible to unstake without the need to withdraw assets manually.","s":"Actions","u":"/integrations/overview","h":"#actions","p":32},{"i":56,"t":"Staking with Drop is done by the following message to the core contract with assets to stake attached, it is possible to omit receiver field, in this case sender's address will be used: { \"bond\": { \"receiver\": \"neutron1receiveraddress\" } } For specifying the staking referral see Referral program integration. Example of using the TS client: const bondTxResult = await coreContractClient.bond( neutronUserAddress, {}, 1.6, undefined, [ { amount: \"500000\", denom: neutronIBCDenom, }, ] ); Staking of LSM shares is done with the very same message. The only difference is the asset attached: instead of being native staking token, it should be LSM share IBC transferred to Neutron. For more details, see Onboarding from native staking.","s":"Staking","u":"/integrations/overview","h":"#staking","p":32},{"i":58,"t":"To make an unstaking request, user should send the dASSET to the core contract with the following message: { \"unbond\": {} } Example of using the TS client: let unBondTxResult = await coreContractClient.unbond( neutronUserAddress, 1.6, undefined, [ { amount: Math.floor(200_000 / exchangeRate).toString(), denom: \"token_factory_denom\", }, ] ); After that, user receives a withdrawal voucher that they can use to withdraw their coins after the unbonding period.","s":"Unstaking request","u":"/integrations/overview","h":"#unstaking-request","p":32},{"i":60,"t":"Withdrawal of the ASSET implies sending the NFT to withdrawal_manager with the following message attached: { \"withdraw\": {} } Example of using the TS client: const voucherWithdrawTxResult = await voucherContractClient.sendNft( neutronUserAddress, { token_id: tokenId, contract: withdrawalManagerContractAddress, msg: Buffer.from( JSON.stringify({ withdraw: {}, }) ).toString(\"base64\"), } );","s":"Withdrawal","u":"/integrations/overview","h":"#withdrawal","p":32},{"i":62,"t":"Post-launch, the Drop DAO will continue to evolve and enhance its validator set management policy. The directions outlined below detail the proposed areas of focus for the protocol's development, aimed at improving decentralization, performance, and governance participation within CometBFT blockchains.","s":"Future directions","u":"/validators/roadmap","h":"","p":61},{"i":64,"t":"As Drop's share of the total stake increases, additional onboarding rounds may be conducted by the Drop DAO to achieve the following objectives: Meaningful Delegations: Ensure that delegations are substantial enough to significantly enhance network decentralization and resilience by supporting minority setups and validators. Preventing Concentration: Maintain delegations at a size that prevents excessive concentration of voting power among a limited number of operators. During each onboarding wave, newly onboarded validators would receive delegations until their stake is balanced relative to the rest of the set.","s":"Validator Set Expansion","u":"/validators/roadmap","h":"#validator-set-expansion","p":61},{"i":66,"t":"Drop contributors will collaborate with network communities and validators to enhance overall performance. As performance benchmarks are met, these requirements may be incrementally increased to lock in the improvements.","s":"Improve Validator Performance","u":"/validators/roadmap","h":"#improve-validator-performance","p":61},{"i":68,"t":"To bolster network performance, Drop contributors will work with validators to gradually raise performance standards. For instance, the Drop DAO may: Introduce limits on consecutive downtime. Encourage faster node recovery after scheduled or emergency upgrades. Encourage governance participation.","s":"Performance Requirements","u":"/validators/roadmap","h":"#performance-requirements","p":61},{"i":70,"t":"The Drop DAO may transition the enforcement of performance requirements to a fully trustless, on-chain mechanism using Neutron’s Interchain Queries capabilities. This transition would enable the protocol to autonomously monitor validator performance and enforce standards on its delegations.","s":"Automation","u":"/validators/roadmap","h":"#automation","p":61},{"i":72,"t":"The Drop DAO may implement scaling delegations that dynamically adjust based on validator performance. For instance, if a validator shows signs of underperformance, delegations would be gradually redirected to other performing validators to minimize the impact of jailing or slashing on the protocol’s delegators. When performance stabilizes at a high level, delegations would revert to their original distribution.","s":"Scaling Delegations","u":"/validators/roadmap","h":"#scaling-delegations","p":61},{"i":74,"t":"Achieving practical decentralization involves mitigating off-chain single points of failure, such as geography, jurisdiction, and ISP choice, to enhance network resilience. A decentralization dashboard maintained by Observatory.zone","s":"Introduce Weighted Delegations to Sponsor Decentralization and Governance Participation","u":"/validators/roadmap","h":"#introduce-weighted-delegations-to-sponsor-decentralization-and-governance-participation","p":61},{"i":76,"t":"To incentivize validators to contribute to the network's decentralization and resilience, the Drop DAO may implement a weighted delegation system. Such a system would allocate a higher share of delegations to validators who enhance network diversity and resilience, while those who do not would receive a smaller share.","s":"Weighted Delegations","u":"/validators/roadmap","h":"#weighted-delegations","p":61},{"i":78,"t":"The Drop DAO may develop scorecards in collaboration with network communities and validators to assess and reward contributions to decentralization. These scorecards would consider factors such as overall voting power, geographic distribution, governance participation, infrastructure, and key signing practices.","s":"Decentralization Scorecards","u":"/validators/roadmap","h":"#decentralization-scorecards","p":61},{"i":80,"t":"Stake Preferred Baseline Discouraged Stake Validator has been in the active set for 3 months and is in the bottom 33% of voting power rank. Validator is among the bottom 52% of voting power. Validator is among the top 48% of voting power. Governance Participation Validator has voted on > 80% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes). Validator has voted on > 50% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes). Validator has voted on < 50% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes). Geography Operations are in a location and jurisdiction not represented in the set. Operations are in a location and jurisdiction underrepresented in the set. Operations are in a location and jurisdiction overrepresented in the set. Infrastructure Operator relies on bare-metal infrastructure. Operator relies on underrepresented ISPs. Operator relies on overrepresented ISPs. Signing Setup Operator uses underrepresented signing practices (e.g., TMKS, Horcrux, etc.). Operator uses accepted signing setups (e.g., TMKS, Horcrux, etc.). Operator uses dominant signing setups (e.g., TMKS, Horcrux, etc.). By implementing these strategies, the Drop DAO aims to continually improve the resilience, performance, and decentralization of the networks it supports, ensuring a robust and secure blockchain ecosystem.","s":"Example Scorecard","u":"/validators/roadmap","h":"#example-scorecard","p":61},{"i":82,"t":"This section provides an in-depth overview of the Drop protocol's approach to validator set management and decentralization. Validator Set Management: Discusses decentralization when applied to PoS validator sets, and how the Drop protocol contributes to the resilience of supported networks. Receive Delegations From Drop: A step-by-step guide for validators looking to receive delegations from Drop protocol. Future Directions: Discusses future directions the Drop DAO may implement to improve the performance and decentralization of its validator sets. FAQ: Provides simple answers to the most frequently asked questions.","s":"Overview","u":"/validators/overview","h":"","p":81},{"i":85,"t":"Decentralization is a core principle of the blockchain industry, it is what makes blockchains more than distributed databases. Decentralization ensures that no single entity has arbitrary control over the blockchain, enhancing its resistance to censorship and centralized decision-making power. While decentralization encompasses various trade-offs, this document will focus on its application to infrastructure and stake distribution within Delegated Proof of Stake (DPoS) networks, such as those built on CometBFT.","s":"What is Decentralization and Why Does It Matter?","u":"/validators/valset","h":"#what-is-decentralization-and-why-does-it-matter","p":83},{"i":87,"t":"A common metric for assessing the decentralization of a CometBFT blockchain is the Halt Threshold, or Nakamoto coefficient. This metric represents the minimum number of validators controlling at least 33% of the voting power, whose collaboration could halt the blockchain. For the sake of illustration, here are the halt thresholds of notable CometBFT networks as of June 2024: Network Cosmos Hub Celestia dYdX Halt Threshold 7 validators 9 validators 3 validators However, the distribution of voting power itself is not the sole point of failure of a delegated proof-of-stake network. When nodes are concentrated within specific jurisdictions, datacenters or ISP companies, networks become increasingly vulnerable to failures and policy changes. For instance, as of June 2024, roughly 44% of Kyve’s nodes were running on Hetzner, and 75% of the voting power on dYdX was located in Japan. In these conditions, a ban on cryptocurrency or validator software by a region, country or even a company could harm, halt or even lead to the capture of the network. Visual representation of the voting power shares of Cosmos Hub validators on June 15th, 2024 by Smartstake.","s":"The Current State of Decentralization","u":"/validators/valset","h":"#the-current-state-of-decentralization","p":83},{"i":89,"t":"Several factors contribute to the current state of decentralization, or relative lack thereof: Unrealistic Expectations on Delegators: dPoS often assumes that market forces will sufficiently incentivize delegators to perform the deep due diligence to collectively optimize a network’s delegation through their delegations, when in reality, few market participants have the time and resources to conduct such analysis, and the market as a whole does not reward decentralization in absolute. Vertical Integration: Affiliated validators, such as those run by centralized exchanges, often accumulate a large portion of the stake through vertical integration. In other words, they are able to leverage their product’s captive user base to drive massive delegations to their validators. Token Distribution: Typically, token distributions in the Interchain are top-heavy, meaning that most of the tokens tend to be owned by a few hundred addresses. Larger validators possess more resources and credibility, enabling them to secure delegations from institutional holders more effectively than smaller, community-oriented validators.","s":"Why Is It This Way?","u":"/validators/valset","h":"#why-is-it-this-way","p":83},{"i":91,"t":"Drop introduces several mechanisms to enhance decentralization and strengthen the network: Broad Delegation: Drop delegates to a large number of validators, increasing the network’s halt threshold and reducing the disparity between the largest validators and the rest. On-Chain Validator Set Management: Drop provides advanced tools such as weighted delegations to sponsor less dominant but high-quality validators, aiding in a more balanced stake distribution. Network Effects: By integrating with centralized exchanges, custodians, and other providers, Drop reroutes otherwise captive stake to be more broadly delegated across the validator set. Dedication: The Drop DAO is incentivized to develop on-chain analytics tools and delegation frameworks that enhance the resilience, decentralization, and security of the network and its delegations. Off-Chain Information Gathering: Through Drop’s onboarding process, DAO contributors gather valuable off-chain information on validators’ practices, infrastructure, geographic distribution, and jurisdictional contexts. This data, which is often not publicly available and is kept confidential by Drop contributors, enables the creation of delegation frameworks that maximize network resilience. By employing these strategies, Drop directly contributes to the robustness and decentralization of CometBFT blockchains, ensuring a more secure and reliable network infrastructure.","s":"How Drop 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\ No newline at end of file diff --git a/search/index.html b/search/index.html index c845d3af..c4b571ea 100644 --- a/search/index.html +++ b/search/index.html @@ -4,13 +4,13 @@ Search the documentation - +

Search the documentation

- + \ No newline at end of file diff --git a/validators/faq/index.html b/validators/faq/index.html index a3557356..357f0dcc 100644 --- a/validators/faq/index.html +++ b/validators/faq/index.html @@ -4,13 +4,13 @@ Validator FAQ | Drop docs - +

Validator FAQ

image

How to signup to be notified of the next onboarding wave?

Currently, the easiest way to be notified of the next onboarding wave is to follow @Dropdotmoney on X. Enabling notifications can help ensure you don’t miss an announcement.

How is stake distributed across validators?

In Drop V1, protocol stake is distributed evenly across the top 30 validators on the Allow List.

How do reward for operators work?

On CometBFT networks, validators set a commission parameter which enables them to receive a portion of the staking rewards for their infrastructure services. Drop delegates to validators with commissions up to 10%.

How is stake allocated when new validators join the set?

When new validators join the set, they are prioritized to receive new delegations until they’ve received an equivalent amount of protocol delegations as the existing validators, at which point the even distribution resumes.

What happens if my validator is removed from the Allow List?

When a validator is removed from the Allow List, its weight is set to 0. This stops new protocol delegations from being made to the validator, but enables the protocol to continue processing undelegations from the validator. As a result, the validator does not instantly lose the entire delegation. Rather, it is gradually removed over time, helping ensure a smooth offboarding experience.

- + \ No newline at end of file diff --git a/validators/onboard/index.html b/validators/onboard/index.html index 8b126963..f6983d46 100644 --- a/validators/onboard/index.html +++ b/validators/onboard/index.html @@ -4,14 +4,14 @@ Receive delegations from Drop | Drop docs - +

Receive delegations from Drop

image

To receive protocol delegations from Drop, validators must first onboard to the protocol’s Allow List by applying during an onboarding wave. Onboarding waves are conducted on an ad-hoc basis to balance validator sustainability with protocol decentralization.

While Drop might conduct onboarding wave when a new network is onboarded, Drop’s onboarding waves are not network-specific. As long as they continue to meet Drop’s requirement on each network, validators that are onboarded to the protocol’s Allow List are eligible for delegations across all supported network.

Make sure to follow @Dropdotmoney on X to be notified when an onboarding wave opens.

During an onboarding wave, validators must complete a three step process:

  1. Ensure they meet Drop’s requirements
  2. Apply to join the Allow List
  3. Maintain performance requirements

1. Ensure that your validator meets Drop’s requirements

To be eligible for protocol delegations, validators must continue to meet the following requirements:

  • Operate their own infrastructure
  • Have commissions set between 5% and 10% included
  • Maintain >95% uptime over the last 90 days period
  • Avoid jailing, slashing or tombstoning.

Validators operated by or affiliated with Centralized Exchanges or Custodian service providers are not eligible to Drop’s protocol delegations.

2. Apply to join the Allow List during an Onboarding Wave

💡 As part of the onboarding process, Drop may request information considered sensitive by your organization. Please only share what you are able to, and note that any information shared in this process will be kept confidential by Drop.

Drop’s first onboarding wave will open on June 17th and close on June 28th 2024 at midnight UTC. To apply, validators must simply submit a complete and faithful application via the appropriate form:

Drop contributors will review your application and confirm your eligibility to the protocol’s Allow List based on the aforementioned requirements.

If you’ve missed the first onboarding wave, make sure to follow @Dropdotmoney on X to be notified of future onboarding waves opening.

3. Maintain performance requirements

Once onboarded to the Allow List, your validator will be eligible to receive protocol delegations from Drop. At launch, to balance stake distribution and operational overhead, Drop will delegate to the top 30 validators in the Allow List by voting power. As the protocol grows, the number of delegation slots may increase.

To remain in the Allow List, your validator will be expected to maintain a high degree of reliability and performance:

  • Maintain >95% uptime,
  • Maintain a commission rate between 5% and 10% included,
  • Avoid jailing, slashing or tombstoning.

Operators that fail to maintain high uptime, or are slashed, jailed or tombstoned will be removed from the Allow List. They can re-apply at the next onboarding wave, once underperformance has been resolved.

- + \ No newline at end of file diff --git a/validators/overview/index.html b/validators/overview/index.html index 210d69e0..718f1962 100644 --- a/validators/overview/index.html +++ b/validators/overview/index.html @@ -4,13 +4,13 @@ Overview | Drop docs - +

Overview

image

This section provides an in-depth overview of the Drop protocol's approach to validator set management and decentralization.

  • Validator Set Management: Discusses decentralization when applied to PoS validator sets, and how the Drop protocol contributes to the resilience of supported networks.
  • Receive Delegations From Drop: A step-by-step guide for validators looking to receive delegations from Drop protocol.
  • Future Directions: Discusses future directions the Drop DAO may implement to improve the performance and decentralization of its validator sets.
  • FAQ: Provides simple answers to the most frequently asked questions.
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Future directions

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Post-launch, the Drop DAO will continue to evolve and enhance its validator set management policy. The directions outlined below detail the proposed areas of focus for the protocol's development, aimed at improving decentralization, performance, and governance participation within CometBFT blockchains.

Validator Set Expansion

As Drop's share of the total stake increases, additional onboarding rounds may be conducted by the Drop DAO to achieve the following objectives:

  • Meaningful Delegations: Ensure that delegations are substantial enough to significantly enhance network decentralization and resilience by supporting minority setups and validators.
  • Preventing Concentration: Maintain delegations at a size that prevents excessive concentration of voting power among a limited number of operators.

During each onboarding wave, newly onboarded validators would receive delegations until their stake is balanced relative to the rest of the set.

Improve Validator Performance

Drop contributors will collaborate with network communities and validators to enhance overall performance. As performance benchmarks are met, these requirements may be incrementally increased to lock in the improvements.

Performance Requirements

To bolster network performance, Drop contributors will work with validators to gradually raise performance standards. For instance, the Drop DAO may:

  • Introduce limits on consecutive downtime.
  • Encourage faster node recovery after scheduled or emergency upgrades.
  • Encourage governance participation.

Automation

The Drop DAO may transition the enforcement of performance requirements to a fully trustless, on-chain mechanism using Neutron’s Interchain Queries capabilities. This transition would enable the protocol to autonomously monitor validator performance and enforce standards on its delegations.

Scaling Delegations

The Drop DAO may implement scaling delegations that dynamically adjust based on validator performance. For instance, if a validator shows signs of underperformance, delegations would be gradually redirected to other performing validators to minimize the impact of jailing or slashing on the protocol’s delegators. When performance stabilizes at a high level, delegations would revert to their original distribution.

Introduce Weighted Delegations to Sponsor Decentralization and Governance Participation

Achieving practical decentralization involves mitigating off-chain single points of failure, such as geography, jurisdiction, and ISP choice, to enhance network resilience. image A decentralization dashboard maintained by Observatory.zone

Weighted Delegations

To incentivize validators to contribute to the network's decentralization and resilience, the Drop DAO may implement a weighted delegation system. Such a system would allocate a higher share of delegations to validators who enhance network diversity and resilience, while those who do not would receive a smaller share.

Decentralization Scorecards

The Drop DAO may develop scorecards in collaboration with network communities and validators to assess and reward contributions to decentralization. These scorecards would consider factors such as overall voting power, geographic distribution, governance participation, infrastructure, and key signing practices.

Example Scorecard

StakePreferredBaselineDiscouraged
StakeValidator has been in the active set for 3 months and is in the bottom 33% of voting power rank.Validator is among the bottom 52% of voting power.Validator is among the top 48% of voting power.
Governance ParticipationValidator has voted on > 80% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes).Validator has voted on > 50% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes).Validator has voted on < 50% of governance polls (excluding spam proposals) over the last 90 days (including “Abstain” votes).
GeographyOperations are in a location and jurisdiction not represented in the set.Operations are in a location and jurisdiction underrepresented in the set.Operations are in a location and jurisdiction overrepresented in the set.
InfrastructureOperator relies on bare-metal infrastructure.Operator relies on underrepresented ISPs.Operator relies on overrepresented ISPs.
Signing SetupOperator uses underrepresented signing practices (e.g., TMKS, Horcrux, etc.).Operator uses accepted signing setups (e.g., TMKS, Horcrux, etc.).Operator uses dominant signing setups (e.g., TMKS, Horcrux, etc.).

By implementing these strategies, the Drop DAO aims to continually improve the resilience, performance, and decentralization of the networks it supports, ensuring a robust and secure blockchain ecosystem.

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Validator Set Management Matters

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What is Decentralization and Why Does It Matter?

Decentralization is a core principle of the blockchain industry, it is what makes blockchains more than distributed databases. Decentralization ensures that no single entity has arbitrary control over the blockchain, enhancing its resistance to censorship and centralized decision-making power. While decentralization encompasses various trade-offs, this document will focus on its application to infrastructure and stake distribution within Delegated Proof of Stake (DPoS) networks, such as those built on CometBFT.

The Current State of Decentralization

A common metric for assessing the decentralization of a CometBFT blockchain is the Halt Threshold, or Nakamoto coefficient. This metric represents the minimum number of validators controlling at least 33% of the voting power, whose collaboration could halt the blockchain.

For the sake of illustration, here are the halt thresholds of notable CometBFT networks as of June 2024:

NetworkCosmos HubCelestiadYdX
Halt Threshold7 validators9 validators3 validators

However, the distribution of voting power itself is not the sole point of failure of a delegated proof-of-stake network. When nodes are concentrated within specific jurisdictions, datacenters or ISP companies, networks become increasingly vulnerable to failures and policy changes. For instance, as of June 2024, roughly 44% of Kyve’s nodes were running on Hetzner, and 75% of the voting power on dYdX was located in Japan. In these conditions, a ban on cryptocurrency or validator software by a region, country or even a company could harm, halt or even lead to the capture of the network.

image Visual representation of the voting power shares of Cosmos Hub validators on June 15th, 2024 by Smartstake.

Why Is It This Way?

Several factors contribute to the current state of decentralization, or relative lack thereof:

  1. Unrealistic Expectations on Delegators: dPoS often assumes that market forces will sufficiently incentivize delegators to perform the deep due diligence to collectively optimize a network’s delegation through their delegations, when in reality, few market participants have the time and resources to conduct such analysis, and the market as a whole does not reward decentralization in absolute.
  2. Vertical Integration: Affiliated validators, such as those run by centralized exchanges, often accumulate a large portion of the stake through vertical integration. In other words, they are able to leverage their product’s captive user base to drive massive delegations to their validators.
  3. Token Distribution: Typically, token distributions in the Interchain are top-heavy, meaning that most of the tokens tend to be owned by a few hundred addresses. Larger validators possess more resources and credibility, enabling them to secure delegations from institutional holders more effectively than smaller, community-oriented validators.

How Drop Helps

Drop introduces several mechanisms to enhance decentralization and strengthen the network:

  1. Broad Delegation: Drop delegates to a large number of validators, increasing the network’s halt threshold and reducing the disparity between the largest validators and the rest.
  2. On-Chain Validator Set Management: Drop provides advanced tools such as weighted delegations to sponsor less dominant but high-quality validators, aiding in a more balanced stake distribution.
  3. Network Effects: By integrating with centralized exchanges, custodians, and other providers, Drop reroutes otherwise captive stake to be more broadly delegated across the validator set.
  4. Dedication: The Drop DAO is incentivized to develop on-chain analytics tools and delegation frameworks that enhance the resilience, decentralization, and security of the network and its delegations.
  5. Off-Chain Information Gathering: Through Drop’s onboarding process, DAO contributors gather valuable off-chain information on validators’ practices, infrastructure, geographic distribution, and jurisdictional contexts. This data, which is often not publicly available and is kept confidential by Drop contributors, enables the creation of delegation frameworks that maximize network resilience.

By employing these strategies, Drop directly contributes to the robustness and decentralization of CometBFT blockchains, ensuring a more secure and reliable network infrastructure.

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