In today's blockchain ecosystem, security and transparency are one of the most important elements. As part of the deBridge protocol, DBR tokens provide users with a stable and reliable trading environment through its unique entrustment pledge and penalty mechanism. This article will delve into the entrusted pledge mechanism of DBR tokens and how to ensure the security of the protocol, and introduce the related operation methods.
The basic concept of entrusted pledge
Delegated staking is a mechanism that allows users to delegate funds to validators, who are responsible for processing transactions and maintaining the security of the network. Users can choose to entrust their funds to validators based on their level of trust in them. This mechanism not only increases the liquidity of the network, but also ensures that validators maintain integrity while performing their duties.
In the deBridge protocol, the smart contract of delegated staking implements the logic of punishment and delegated staking, which allows anyone (including the verifiers themselves) to provide liquidity to the verifier as a financial guarantee of their impartiality.
Validator Responsibilities
Validators bear significant responsibilities during operations. If a validator is caught validating forged or censored messages, the liquidity they receive may be used for punishment. This means that anyone who suffers financial losses due to a validator’s misconduct will be compensated by deBridge’s governance body from the validator’s stake.
Therefore, in addition to reputational risk, validators are financially responsible for the proper functioning of the protocol and its fault tolerance. There are two main ways for validators to attract liquidity:
Validators self-stake liquidity.
Validators attract liquidity from delegators and share in the rewards paid by the protocol.
Operation of entrusted pledge
Any user or wallet can increase the stake of any validator as long as they trust that validator to be reliable and manage the infrastructure properly without causing interruptions or delays in transaction processing and verification. The governance body is responsible for managing the whitelist of assets that can be pledged, and initially only assets such as ETH, USDT, and USDC are allowed to be pledged. The introduction of stablecoins allows users to hedge their pledged assets during market fluctuations and avoid the dollar value of the total pledged deposit from shrinking during the bear market.
When a user decides to withdraw any pledged assets, a 14-day cooling-off period is required, starting from the time of withdrawal of the request, until the user is able to withdraw their assets. In the future, the cooling-off period for withdrawals will be shortened to 7 days. There are several reasons for setting a cool-down period:
Avoid front-loading transactions: Prevent users from briefly staking to obtain rewards during periods of high trading volume.
Give governance bodies time: Governance bodies can penalize validators for their deposits before delegators withdraw liquidity. Governance bodies have the ability to pause or resume new staking/withdrawal and ongoing cooldown periods for specific validators or delegators.
Delegator's flexibility
Delegators can also transfer their stake between validators, a process that requires a 2-day cooling-off period. This cooling-off period is relatively short because governance bodies are still able to penalize their deposits after a user initiates a transfer after the original validator fails.
Governance bodies play a vital role in this process, ensuring transparency and security in all operations. This not only protects users’ funds, but also maintains the stability of the entire ecosystem.
in conclusion
The entrusted pledge and penalty mechanism of DBR tokens provides a safe and reliable foundation for the blockchain ecosystem. Through these mechanisms, a trust relationship is established between validators and delegators and ensures the normal operation of the protocol. In the future, with the addition of more assets and the improvement of governance mechanisms, DBR tokens will play an increasingly important role in the blockchain field.