Stakehouse Protocol and Registry Model Construct

The registry model ensures asset ownership traceability for every deposit as a mintable token that can be verified instantly from an Ethereum node in isolation. A user’s mintable asset within a registry represents an optimistic UTXO that is spendable. Any financial protocols can perform arbitrary operations locally without incurring gas-intensive smart contract operations.

Decentralized Finance (DeFi) has transitioned through a few operating models. It started with simple peer-to-peer transactions and evolved into peer-to-contract. Peer-to-contract results in assets being pooled by default, and requiring constant maintenance to avoid issues such as impermanent loss. In a UTXO accounting model, tracking of assets moving between users is recorded as inputs and outputs. The last registered output is used as input for future transactions. With UTXO, a tamper-proof attestation is maintained to preserve the continuity of the input/output sequence on a commonly agreed singleton. A classic example of a UTXO implementation can be seen with Bitcoin. Ethereum differs by recording the entire network state using the Account Model for better programmability of asset transfers. The Account Model brings easier storage and better forensics for asset movement in its entirety. This is all thanks to Ethereum’s blockchain node data structure.

Every honest Ethereum node maintains a record of the subset of all state changes at all times. In technical terms, the blockchain state is synced in every full node. When a new block is added to the chain, it triggers a state transition where the affected blockchain state is updated accordingly. Regardless of which node you are querying, they all give the same blockchain state data that has reached consensus. Registry contracts leverage the Ethereum Account Model that is derived from the network state and creates a collection of nano ledgers on top. These nano ledgers track asset movement and their inputs and outputs. This exposes the multithreaded computation capability for nano ledger metadata off-chain. Stakehouse is a mechanism-based design that enables staked ETH liquidity abstraction on multiple blockchains through this new state propagation model. There are no additional consensus requirements for the registry to work as it is implemented in line with the existing EVM and standard EIP compliant structure.

Given the nature of the registry as an asset tracking mechanism from its nano ledger, a user with assets in a registry can always exercise spending rights for their assets. The key here: if there is an unspent optimistic UTXO in the registry, then there is a token a user can mint. Registries can be connected together in a multichain world, enabling the creation of a UTXO for spending. This spending can be done on any destination blockchain, introducing highly portable assets. Users never lose custody of their assets while interacting with registries because their assets are segregated. Unlike a blockchain, the registry has no synchrony assumption; it allows a user to reconcile the asset state and current balances from its respective blockchain node at any time - this can be referred to as rates and rights.