Universal Validator Set (UVS)

Overview of UVS

The Universal Validator Set (UVS) is the backbone of LayerEdge, enabling trust-minimized operations for zk-protocols by running full validator nodes. UVS validators play a critical role in validating zk-proofs, and ensuring secure settlements on Bitcoin.

UVS validators are incentivized through a reward mechanism, which is tied to their stake on Babylon and LayerEdge. This document provides a detailed guide on how UVS runners are rewarded and how they can maximize their earnings.

UVS Validation Process

The diagram below illustrates the flow of the UVS validation process:

1. Stake BTC via Babylon: Validators stake BTC to provide economic security.

2. Restaked BTC Enables UVS: BTC is restaked to power LayerEdge’s UVS system.

3. Validation: UVS nodes validate zk-proofs for efficient Bitcoin settlement.

4. Trust-Minimized Settlement: Aggregated proofs are settled on Bitcoin, ensuring secure and transparent operations.

5. $EDGE Staking for Boosted Rewards: Validators can stake $EDGE tokens to earn higher rewards and additional benefits.

How to Become a UVS Runner

1. Restake BTC via Babylon: To participate as a UVS validator, you must first stake BTC through Babylon’s restaking mechanism. This restaking ensures economic security for the LayerEdge network and zk-protocols utilizing its infrastructure.

2. Run a Full Validator Node: Once BTC is restaked, you will be eligible to run a full validator node for LayerEdge. As a UVS runner, your node will:

3. • Validate proofs from multiple zk-protocols on leaf level.

   • Validate the final aggregated proof before settling on Bitcoin.

4. Earn Base Rewards: By staking BTC and running a UVS node, you will receive base rewards as part of LayerEdge’s validator reward mechanism. These rewards are distributed based on the economic security you provide through restaked BTC.

Boosting Rewards with $EDGE Staking

To unlock higher-tier rewards, UVS runners can stake $EDGE tokens in addition to their restaked BTC. This staking mechanism incentivizes validators to align more closely with LayerEdge's ecosystem and ensures better economic participation.

Reward Tiers:

• Base Tier: Rewards for validators restaking BTC via Babylon.

• Boosted Tier: Additional rewards for validators who stake $EDGE tokens. The more $EDGE tokens staked, the higher the reward multiplier.

Key Benefits of $EDGE Staking:

• Higher Rewards: Staking $EDGE tokens significantly increases the reward potential for UVS runners.

• Governance Rights: Staked $EDGE tokens provide governance rights, enabling validators to participate in LayerEdge’s decision-making processes.

Reward Distribution Mechanism

Rewards are distributed periodically and are calculated based on:

1. Restaked BTC: The amount of BTC restaked via Babylon.

2. $EDGE Staked: The total $EDGE tokens staked by the validator.

3. Validation Activity: The performance and uptime of the UVS node.

Reward Calculation:

• Base Reward: Proportional to the amount of BTC restaked.

• Bonus Multiplier: Based on the amount of $EDGE tokens staked.

• Performance Factor: Rewards are adjusted based on the validator’s contribution to proof validation.

Example: A UVS runner with 1 BTC restaked via Babylon and 1,000 $EDGE staked will earn significantly more rewards compared to a runner with only 1 BTC restaked and no $EDGE staked.

Responsibilities of UVS Runners

1. Maintain Node Uptime: Ensure your validator node operates consistently with minimal downtime. Performance penalties may apply for prolonged inactivity.

2. Validate zk-Proofs: Process proofs from various zk-protocols accurately and efficiently.

3. Stake Maintenance: Regularly monitor and manage your BTC and $EDGE stakes to maximize rewards.

Key Benefits of Being a UVS Runner

1. Earning Potential: UVS runners earn competitive rewards for their contributions to the LayerEdge network. By staking both BTC and $EDGE, validators can maximize their income.

2. Economic Security Alignment: Restaking BTC via Babylon ensures that UVS runners contribute directly to the economic security of the LayerEdge network.

3. Modular Ecosystem Support: UVS runners play a critical role in supporting zk-protocols and decentralized applications, contributing to a scalable and modular Bitcoin ecosystem.

4. Governance Rights: Validators staking $EDGE tokens gain governance influence, allowing them to shape the future of the LayerEdge network.

Join the UVS Network

If you're ready to participate as a UVS runner and contribute to the next evolution of Bitcoin zk protocols, get started today by:

1. Staking BTC through Babylon.

2. Setting up your full validator node.

3. Staking $EDGE tokens to maximize rewards.

For detailed technical setup guides and support, visit our [documentation page].