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Cygnus uses its Omnichain Liquidity Validation System (LVS) vaults to delegate collateral to operators and reuse it across networks. Vault selection involves the delegation strategy, withdrawal epochs, and rules governing slashing and rewards.
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- Strategy control
- Vault deployers or owners set delegation and restaking strategies, and participating networks must opt into those strategies.
- Balance accounting
- Vaults handle collateral deposits, withdrawals, and slashing; deposits increase the active balance immediately.
- Withdrawal model
- A request and claim process spanning multiple vault epochs.
Vault configurations
- Operator-specific vaults support specific operators restaking collateral across different networks.
- Curated multi-operator vaults combine restaked networks and operators in configurations with customizable slashing limits.
- Immutable pre-configured vaults keep their rules fixed after deployment.
An immutable vault’s fixed rules govern its configuration, while slashing can still reduce its active collateral balance.
Delegation and stake limits
The Delegator module sets limits on operator and network stakes during restaking and slashing. FullRestakeDelegator supports restaking across operators and networks, while NetworkRestakeDelegator focuses on preventing restaking within the same network.
Slashing checks and loss sharing
The Slasher module validates slashing requests, including whether operators have opted into both the vault and the network. Cygnus supports Instant Slashing and Veto Slashing, with a veto phase before execution in the latter. Slashing reduces the active balance proportionally across all users.
Example: Network consent and operator opt-in
A network can accept a vault’s strategy while an operator still fails a slashing-request validation check. Assume a hypothetical network opts into the strategy, and a hypothetical operator opts into that network but not the vault.
The operator fails the Slasher’s vault opt-in check, even though the network accepts the strategy. Adding the hypothetical operator’s vault opt-in satisfies this particular requirement only if its network opt-in also holds. Other slashing validation requirements still apply.
Staker and operator rewards
Vaults distribute network staking rewards to collateral depositors based on their active shares at specific timestamps. The Delegator manages operator rewards using the operator’s stake in the network.
