SquadFi

SquadFi is inspired by the need of decentralization in the validation ecosystem of the Ethereum Network. Our browser-based frontend allows users to create a squad (validator cluster) or join one. Validator Squads aim to enhance the decentralization, security, and fault tolerance of Ethereum network while optimizing the processes involved.

SquadFi is designed to operate by distributing the validation process across a squad (cluster) of up to 4 nodes (initially). Each node acts as a validator, contributing to the consensus mechanism. This decentralization helps to prevent a single point of failure, enhances the overall security of the network, increases yield, while decreasing minimum required deposit. Even if ⅓ of the validators experience downtime, the squad (cluster) performs.

Enhanced security comes from ensuring that no single node possesses complete authority over the private key at any moment, minimizing the risk of a compromise.

This project is powered by Obol Network - an ecosystem for trust minimized staking that enables people to create, test, run & co-ordinate distributed validators.

Our project can be summed up into making DVT/squad staking as convenient, accessible and as flexible as possible. To do this we started by making the cluster generation as easy as possible. Instead of going through a confusing process of dockers, cli commands and confusing config files we wanted to abstract it all away into an easy to use UI. We only require users to run one setup script on the server; everything else can be done interactively through the web app and generated automatically.

We have used Mantine Next.js to design the frontend and the backend is built in Node.js

Once a Squad is deployed (Sepolia Testnet), we utilize Multisig “Safe” Wallet directly into the app to ensure smooth funding coordination and consensus between individual squad mates so that you don't have to understand the complex cluster configurations and how to manually build a deposit transaction with them. We also extend the smart contracts to allow for trustless deposits so that anyone can opt out at any time as well as a custom withdrawal manager that splits the principal from the reward payments and transfers the fees to a splitter contract that splits the fees between the depositors and node operators based on some agreed upon configuration.

We have integrated “ENS Domains” using a proxy contract to deploy different withdrawal recipients for each squad. We are utilizing ENS Subdomains, so that each withdrawal recipient can have their own subdomain, and therefore are easily findable by the squad mates.

This is followed by a direct interaction with Deposit Module which aggregates funds and transfers them according to preselected terms e.g.: RocketPool, StakeWise, or Beacon Chain Deposit Contract.

Furthermore, the Deposit Contract acts as a manager that splits the principal fees that get deposited back to the Deposit Contract and additional fees are directed to a Fee Splitter. We have utilized fungible NFTs (ERC1155) that are distributed to cats that are participating in the SquadFi. These NFTs represent ownership over the % of fees accrued and distributed proportionally. This allows you to transfer your fee share by transferring/selling your NFTs.. This could allow for more expressibility within the DVT and staking layer as well as a potential market to bet on the staking yield or hedge your staking rewards.

We have integrated “Wallet Connect” and their Web3 Inbox SDK which enables squads to track their nodes as well as embrace the chat functionality to coordinate.

Fun fact: Casually deploying 19 docker containers.