LayerZero and Eigen Labs Launch New Framework for CryptoEconomic Decentralized Verifier Networks to Enhance Security

LayerZero and Eigen Labs have teamed up to create a new framework for CryptoEconomic Decentralized Verifier Networks, or DVNs. This partnership is all about enhancing security through cryptoeconomic guarantees.

The CryptoEconomic DVN Framework adds an important layer of security to omnichain messaging. It ensures that verifiers are not only technically skilled but also financially motivated to act honestly. With this framework, projects can set up a DVN on EigenLayer, using any tokens, operators, and slashing rules they choose.

This framework is open for any third-party DVN to adopt. It boosts security by integrating crypto principles with various tokens. There are four key mechanisms at play: stake, verify, veto, and slash.

If there's a mismatch during message verification, a separate veto contract kicks in on Ethereum. This allows token holders to vote on whether to penalize the DVN's stake. If the vote finds no wrongdoing, the staked assets remain safe. But if there’s a confirmed packet mismatch, the assets staked in the DVN’s AVS will face slashing.

The LayerZero Labs DVN is the first to use this framework. It’s a collaborative effort between LayerZero Labs and Eigen Labs. Users can stake ZRO, EIGEN, and ETH in the LayerZero Labs DVN AVS staking contract.

When a packet discrepancy is detected, ZRO holders can vote on whether the staked assets should be penalized. This setup enhances security for applications that rely on this DVN to confirm LayerZero messages.