AVS Screening - Omni Network

AVS Description

Omni Network is an interoperability protocol that intergrates L2 rollups through a low latency cross-rollup communication infrastructure. It is a natively secured and externally verified network leveraging EigenLayer’s restaking. The network is globally compatibility with all Ethereum rollups and effectively creates a single connective network for rollups and applications. Cross-rollup consensus is achieved through an integrated consensus model.

Categorization

Omni can be categorized generally as a rollup service given its core function of being a rollup service provider. As a subcategory, it is an interoperability AVS because it facilitates cross-rollup interaction.

Unique Selling Proposition

Given the fragmented nature of L2s, in the form of users and liquidity, Omni Network aims to act as the unifiying protocol with the following unique features:

Cross-chain data and asset transfer communication.
Cross-chain application development.
Eignenlayer restaking security.

On a technical level, to enable these features, Omni Network utilises the following:

XMsg, a specialized message transfer format.
Portal Contracts, deployed betweeen rollups to facilitate verification and execution of cross-chain transactions.
EigenLayer Integration, leveraging pooled security for interconnected rollup operations.

Integrated consensus and cross-chain data are managed through XBlocks.

Economic Model

Omni Network's security model utilizes a dual staking mechanism, combining restaked $ETH and staked $OMNI, the networks native token.

$OMNI is an ERC-20 token, with a maximum supply of 100,000,000. OMNI acts as the networks gas, reward and governance utility token. Gas fees process both cross-rollup transaction requests and Omni EVM transaction requests.

According to their docs, currently $OMNI stakers receive 6% APR and with the rollout of mainnet, rewards will be split dynamically between $OMNI stakers and $ETH restakers depeding on asset requirements.

Revenue Model

Omni currently implements a Solidity-based fee payment interface that has $ETH as the payment currency, in the future $OMNI and other tokens will be added. Developer related fees are charged for cross-rollup transactions. Fee pricing is calculated on a per transaction basis.

Points Program

N/А

Airdrop Distribution

$OMNI Genesis airdrop allocated 3% (3M $OMNI) of total supply to the Omni community and partners. The allocation was broken down as follows:

Omni community - 1,500,000 $OMNI – 50%
EigenLayer Restakers - 400,000 $OMNI – 13.3%
Beacon Chain Solo Stakers - 300,000 $OMNI – 10%
Milady Maker & Redacted Remilio Babies NFT Holders - 380,000 $OMNI – 12.7%
Pudgy Penguin NFT Holders - 170,000 $OMNI – 5.7%
The Ninjas NFT Holders - 75,000 $OMNI – 2.5%
Strategic Partner Protocols - 175,000 $OMNI - 5.8%

Strategic Partner Protocols include 25 protocols partnered with Omni and contributed to its early growth, including EtherFi, Monad, Berachain, and EigenLayer.

Other Product Information

Phase 1 of mainnet launch, Omni Armageddon, was announced on April 22 2024. Live participation in mainnet operations also coincides with the rollout of $OMNI genesis staking rewards from the genesis airdrop.

Omni Octane, a modular implementation of the EVM, recenlty launched and aims to simplify the integration of the EVM into any blockchain application. Octane is the first consensus implementation of the EngineAPI besides Ethereum itself (the Beacon Chain). Omni blockchain uses Octane and allows other developers to intergrate the tool.

Builders

Austin King - Co-Founder / CEO
Tyler Tarsi - Co-Founder / CTO
Full organisation team here.

Backers

Investors: Pantera, Two Sigma Ventures, Coinbase Ventures, Jump, Spartan, Vessel.

Partnerships/Integrations: Conduit, DotOmni, Stork Network, Ebisu Finance, Overlay Protocol, Lucidly Finance, Arbitrum, Optimism, Polygon, Scroll, Linea, Starkware, Espresso, Caldera, AltLayer, Injective, Mantle, Flow, Manta, Sushi, Mentis, Polkastarter, Catalyst, Impossible Finance and Autonomy Network.

Centralization

The Mainnet AVS contract presumably controlled by the team. Current documentation doesn't make mention of a multi-sig.

Operator Opt-out

In current documentation, validator requirements only make mention of onboarding requirements and nothing that relates to opting out after.

Security

To date, 2 audits have been done on AVS and token contracts by Sigma Prime (April 04, 2024) and Zellic (March 29, 2024). In the Sigma Prime report, 1 critical severity issue was found and resolved, while 2 low severity issues were found but were closed with acknowledgment but unresolved.

The Zellic report found; 2 findings were of high issue - 1 fix was applied and the other acknowledged. 1 medium issue was acknowledged, and the remaining was informational.

Maturity

Mainnet Deployment Date: April 12 2024
Holesky Testnet Date: March 26 2024

AVS contracts registry doc

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

The control is centralised in EOA, allegedly controlled by non-doxxed individual(s);