# AVS Screening - AltLayer

## AltLayer

Contract address: 0x71a77037870169d47aad6c2C9360861A4C0df2bF
Website: https://www.altlayer.io/
Twitter: https://twitter.com/alt_layer
Docs: https://docs.altlayer.io/altlayer-documentation
Blog: https://blog.altlayer.io/
AVS Category: Rollups
ETH Restaked: 1,385,881
Total Operators: 42
Total restakers: 86,485
Competitors: Dymension, Ankr Network, Gelato
Mainnet Date: April 11th, 2024
Economic Security wanted: $4.66b
Operator limits: None
Points program: N/A

### AVS Description

Restaked Rollups, a concept developed in collab with EigenLayer, introduce three vertically integrated AVSs: VITAL for decentralized rollup state verification through a network of operators verifying and challenging new states; MACH for faster finality by validating rollup blocks and raising alerts on invalid ones, providing an RPC endpoint for faster confirmations; and SQUAD for decentralized sequencing, enabling AVS operators to register as sequencers and stake collateral to sequence transactions for rollups, functioning as a full-fledged blockchain network with WASM and EVM execution environments.

### Unique Selling Proposition

Out of the three service types, MACH is the sole presently launched on mainnet. By design MACH should provide faster transaction finality for rollups, compatible with both ZK and Optimistic architectures. It employs cryptoeconomic security incentives and offers three operational modes: Pessimistic for replaying and validating transactions, Optimistic allowing state challenges through bisection protocols, and Validity Proof Mode utilizing MACH as a decentralized verifier for proofs submitted by rollup operators. MACH's flexibility across proof systems, runtimes, and its seamless RPC integration make it a valuable infrastructure component for enhancing rollup scalability, security, and real-time transaction processing within the Ethereum ecosystem.

### Economic Model

AltLayer's tokenomics is centered around its native token ALT that was officially launched on January 25, 2024. The ALT token serves as an economic bond that operators stake alongside restaked assets to incentivize honest behavior and facilitate the slashing of stakes in cases of detected malicious conduct. Operators are incentivized through the distribution of ALT tokens as rewards for their services. Lastly, network participants are required to pay fees denominated in ALT tokens, further integrating the token into the protocol's economic model.

### Points Program

N/А

### Other Product Information

Testnet launch for VITAL and MACH with Arbitrum Orbit is planned for Q2 2024. In Q3 their mainnet launch should be carried out, as well as
continued EigenLayer AVS mainnet rollout.

### Builders

Yaoqi Jia - founder and CEO. Co-founded Zilliqa where served as CTO.
Amrit Kumar - COO. Co-founder of Zilliqa, former Chief Investments Officer of the company.
Tan Jun Hao - Head of Product Engineering. Ex- core developer of Zilliqa.

### Backers

Investors: Polychain Capital, Jump Crypto, and Breyer Capital in Seed Round; Strategic Funding Round co-led by Polychain Capital and Hack VC, with participation from OKX Ventures, HashKey Capital, Bankless Ventures, Primitive Ventures, SevenX, Mask Network, IOSG, and TRGC; Undisclosed investment by Binance Labs

Partnerships: EigenLayer, Sovereign SDK, HyperLane, Celestia, Orbiter Finance, Espresso Systems, Radius, Double Jump.Tokyo, Arbitrum Orbit

### Centralization

[AVS contract](https://etherscan.io/address/0x71a77037870169d47aad6c2c9360861a4c0df2bf) is owned by a 2/3 multisig with the following signers:
[[0x834F78E947Aafbcb970087bD2acDd2476Bc3f216]
[0x065A171B5812a31BDDb1c011273CadEda36fA81C]
[0x5f17Ea23387fBAc3E939302D8Beee48f02c28dF7]]

### Security

[Peckshield audit](https://github.com/alt-research/mach-avs/blob/m2-dev/audits/PeckShield-Audit-Report-AltLayer-MACH-AVS-v1.0.pdf) findings are with low and medium severity.

[n-var Consulting](https://github.com/alt-research/mach-avs/blob/m2-dev/audits/AltLayer-Mach-AVS-M2-Final-by-n-var.pdf) audit addressed more severities in the same categories, that have been remedied.

### Maturity

Mainnet date: April 11th, 2024
OP EigenDA Testnet & OP Avail Testnet available on Sepolia Testnet

### Operators Opt-Out

Documentation does not indicate a mandatory waiting period for operators who wish to opt-out.

### Regulatory Complexity

Low risk of legal challenges is anticipated for the project, rooted in its infrastructural nature, which positions it to be regulatory agnostic.

### Risk Considerations

- Admin rights are centralized under a multisig wallet, controlled by three signatories whose identities remain undisclosed;