What are Byzantine vaults?

Overview

Byzantine Vaults (ByzVaults) are the foundation of the Byzantine protocol, providing standardized access to a diverse ecosystem of restaking opportunities through a secure, non-custodial architecture.

Byzantine Vault Architecture

Core Concepts

Byzantine Vault (ByzVault)

A Byzantine Vault is a self-contained, non-custodial smart contract that serves as the standardised access point to the Byzantine restaking ecosystem. Each vault:

• Connects various restaking opportunities together

• Implements a specific restaking strategy

• Operates as a fully fund-segregated and risk-isolated entity

• Follows the ERC4626 standard (with the exception of asynchronous withdrawals)

Ecosystem Connections

Byzantine Vaults give access to a wide variety of restaking opportunities through:

• Restaking Protocols: Integration with protocols like EigenLayer, Symbiotic, Jitto...

• Staking Operators: Connections to a large set of staking operators

• AVS/Networks: Access to various Actively Validated Services and networks

Custom Strategies

Every ByzVault can implement a custom strategy based on:

• Risk Profile: Different levels of risk tolerance

• Yield Expectations: Target returns based on user requirements

• AVS/Network Types: Specific focus on services like:

  • ZK services

  • Oracles

  • Intents

  • Data availability

  • Interoperability layers

Security Features

ByzVaults are designed with strong security principles:

• Fund Segregation: Each vault's funds are completely separate

• Risk Isolation: A slashing event in one vault has no impact on other vaults

• Non-Custodial: Assets are never under the control/custody of the curator, vault owner, or operators

• Asynchronous Withdrawals: Executed in 2 steps with a maximum 14-day waiting period

Vault Shares

When depositing into a vault:

• Users receive vault shares representing their ownership in the vault

• Vault shares are non-rebasing ERC20 tokens

• As rewards accrue, the value of the vault shares increases

• Vault shares can always be redeemed for the underlying assets

• Transferability: Vault shares can be configured as either transferable or non-transferable depending on vault parameters

  • Transferable shares: Can be sent to other addresses, traded, or used in DeFi applications

  • Non-transferable shares: Locked to the original depositor's address for enhanced security or compliance requirements

Types of ByzVaults

• Native Restaking Vaults

• ERC20 Vaults

• Cross Protocol Vaults

Key Benefits

• Standardized Access: Consistent interface to diverse restaking opportunities

• Customizable Strategies: Flexible approach to meet specific requirements

• Risk Management: Isolated exposure to minimize impact of potential issues

• ERC4626 Compatibility: Adherence to industry standard for yield-bearing vaults

• Full Ownership: Users always maintain ownership of their assets through vault shares

• Flexible Transferability: Vault shares can be configured as transferable or non-transferable based on use case requirements:

  • Transferable shares enable secondary markets and integration with other DeFi protocols

  • Non-transferable shares provide additional security and compliance options