Governance as a BVS Example

Overview

This example demonstrates using a social committee as the governing body for Bitcoin Validated Service (BVS) integrated with SatLayer (shared security provider). The service for this example is simply a CW3, a fixed membership committee that can be used to govern the BVS, for the following:

• Slashing lifecycle

  • Slashing Request
  • Locking the collateral as part of the slashing lifecycle
  • And finalizing the slashing request - moving the slashed collateral to the BVS contract balance.

• Reward distribution

  • This example imagines a scenario where there is a reward trigger mechanism off-chain that triggers and injects rewards into the SatLayer reward contract through the BVS contract.
  • The committee is responsible for reviewing, proposing, voting, and executing the reward distribution.
  • For simplicity, this example assumes that operators are also node runners. Rewards are paid out as part of their sovereign native chain mechanisms to their operators separately. The node runners (operators) additionally act as vault curators on BVS, such that the rewards are only paid to the retail stakes that stake into the vaults.
  • The example also assumes that the reward node runners are required to curate vaults on BVS.
  • Operators are free to stake to their own delegated vaults to earn additional rewards.

Disclaimer

This example in particular is designed to serve as supplementary material for BVS developers looking to integrate with SatLayer. Such that the social committee, as a governing body, is purely an arbitrary pick for this example, for simplicity. The example does not attempt to suggest any reward/slash strategy but rather gets developers familiar with BVS to SatLayer integration.

Directory Guide

.
├── contract                            <-- Contains the governance contract code
│   ├── Cargo.lock
│   ├── Cargo.toml
│   ├── generate-type.mjs
│   ├── governance-contract.d.ts
│   ├── package.json
│   ├── src
│   │   ├── bin
│   │   │   └── schema.rs
│   │   ├── contract.rs
│   │   ├── error.rs
│   │   ├── lib.rs
│   │   ├── msg.rs
│   │   ├── state.rs
│   │   └── testing.rs
│   └── tests
│       └── integration_test.rs
├── README.md                           <-- This file
└── service
    ├── package.json
    └── src
        ├── api.ts                      <-- API for interacting with SatLayer protocol contracts.
        ├── reward.test.ts              <-- Reward lifecycle example implemented as Tests for reward distribution functionality
        ├── service.ts                  <-- Contains the off-chain reward trigger emulation codes.
        └── slash.test.ts               <-- Slashing lifecycle example implemented as Tests for the slashing flow on SatLayer.