Hack AVS Polymer Bounty

Overview:

Polymer is building scalable on-chain networking between rollups through the Polymer Hub, our Layer-2 solution, leveraging Ethereum as the common source of truth. As a partner in the Hack AVS, Polymer is excited to extend our collaboration with Eigenlayer to explore a multitude of integration possibilities between Polymer’s on-chain coordination mechanisms and Eigenlayer’s Actively Validated Services (AVS) technology.

Context of the Hackathon:

As part of the Dora Hacks - AVS Hacks Hackathon, Polymer is excited to introduce a challenge to the community. We are offering a bounty for developers who can innovate and extend the capabilities of the Polymer network using the EigenLayer AVS (Active Validator Set) technology. This challenge aims to explore new possibilities in Web3 authentication and authorization protocols, enabling a more connected and secure blockchain ecosystem.

Utilizing EigenLayer AVSs for Web3 Auths:

EigenLayer’s AVS technology enables node operators to monetize computational services, supporting a variety of use-cases within Polymer’s infrastructure, including:

  1. MultiSig Authorization with AVS Node Operators: Uses multisig mechanisms for on-chain validation and verification processes. AVS Node operators can leverage Polymer’s internet-like infrastructure to define communication ports which can validate transactions on multiple chains (data integrity) and have the whole process on-chain, including verification or its slashing via EigenLayer AVS. In essence we replace off-chain (3rd party systems) with on-chain checks for transaction validity, signature authenticity, and data integrity performed by Ethereum operators and secured by $ETH stake.

Example: Given we are using AVSs here, this setup can be used by restaking protocols to allow their partner node operators to generate more yield by acting as signers and help with bridging their tokens between rollups.

  1. Batching Services: Allows applications to define custom data batching schemes, like Merkle or Verkle trees, improving operational efficiency. These can even be expanded to maintain an aggregated commitment for a given application by accumulating all the data sent to a given Auth application on various chains into a single tree like MMR commitments and can keep growing.

Example: A decentralized exchange (DEX) can use Polymer’s batching services to aggregate multiple trade orders into a single transaction. This not only reduces the gas costs associated with individual trades but also speeds up the processing time. For example, during high volatility periods when the order submission rate increases, the DEX can batch trades every few seconds instead of processing each trade individually. The DEX would use a Merkle tree to batch these trades, providing a cryptographic proof of all orders in the batch. This proof can then be verified on-chain to ensure all transactions in the batch are valid and authorized, utilizing the AVS for additional security checks and to finalize batch settlements across chains.

  1. Data Indexing Authorization Services: Operators can build indexing services for multi-chain applications, similar to database indexing via standard ports like MySQL (Port 3306) and PostgreSQL (Port 5432). Operators can build data indexing authorization for multi-chain applications by maintaining indexing end-points over Polymer.

Example: Consider a multi-chain analytics platform that tracks wallet activities across different blockchains to provide insights into decentralized finance (DeFi) market trends. This platform can utilize Polymer’s data indexing auths to create a unified indexing service that consolidates data from multiple different chains in the OP Stack (e.g. Base and Optimism).Each chain would have a Polymer node operator responsible for collecting and indexing transaction data related to DeFi activities, such as swaps, liquidity provision, and yield farming. These indexes are then maintained in a standardized format, accessible via Polymer ports mimicking traditional database queries (e.g., SQL-like queries). Clients can query this data through a GraphQL API, enabling them to retrieve customized data sets like transaction histories, wallet balances, and active participation in DeFi protocols across multiple chains.

This list is just the starting point for letting loose your imagination of what is possible when you have a network layer and ability to integrate compute-as-a-service closely with it. We encourage you to share more ideas and how to make them more feasible.

Polymer Bounty Implementation Guide: Cross-Environment Operations Bridge

Objective:

Develop a operator registry and multisig contract that operates across Optimism and Base Sepolia using Polymer. This system should integrate a mechanism where Polymer-related events on Sepolia could theoretically trigger AVS-specific actions on Holesky (via off-chain event listeners or lite nodes). The full vision of this project will need to implement a two-part system: a operator registration and multisig contract on Optimism and Base Sepolia, and a parallel AVS management system on Holesky. These systems will interact with each other to send data, and ensure security measures across multiple chains. The Objective of this Hackathon bounty is to implement the first part of this system: an operator registration and multisig contract that operates across the Optimism and Base Sepolia networks using Polymer. This application is foundational, enabling the future integration of an AVS that will verify and potentially implement slashing mechanisms for disputed transactions.

System Overview:
The Polymer bounty project involves creating a cross-chain multisig contract that functions across Optimism and Base Sepolia using Polymer Hub. This will later enable an AVS to verify transactions and enforce security measures such as slashing in cases of disputes. Development Focus Areas:

  • Polymer Cross-Chain Transactions: Implement and test secure cross-chain multisig transactions.
  • Event Handling: Design mechanisms to handle events that are critical for multisig operations and future AVS integration.

Implementation Steps:

  1. Multisig Application Deployment:
  • Deploy a multisig smart contract on both Optimism and Base Sepolia that interfaces with Polymer’s infrastructure.
  • Design the contract to handle cross-chain transactions and to be capable of initiating events that need to interact with the AVS system on Holesky.
  1. Operator Registry Smart Contract: Create a smart contract that manages node operators’ addresses and signatures across both chains, enabling secure operations and verification processes.
  2. Documentation and Standardization:
  • Document the entire process, focusing on the interaction between multisig transactions and AVS responses.
  • Standardize the interface calls to align closely with IBC standards, ensuring that the system is robust and can be extended or adapted in the future.

Innovation:

This project addresses the foundation to integrate AVS’s into blockchain interoperability solutions. AVS’s can solve challenges of blockchain interoperability by enhancing both performance and security across different blockchain environments. Creating a multisig contract that communicates over two different blockchains, opens up possibilities for more complex and secure decentralized applications that can operate across multiple blockchain ecosystems, which can be secured through an AVS. Integrating and AVS not only adds additional security on-top of the multi-chain multisig, but also could improve the finality and speed of cross-chain transactions by pre-verifying transactions.