# AVS Screening - Xterio MACH

## Xterio MACH

Contract address: 0x71a77037870169d47aad6c2C9360861A4C0df2bF
Website: https://xter.io/
Twitter: https://twitter.com/XterioGames
Docs: https://xterio.gitbook.io/xterio
Blog: N/A
AVS Category: Rollups
ETH Restaked: 1.31m ETH
Total Operators: 42
Total restakers: 89,630
Competitors: No direct gaming competitors; With regard to MACH - Dymension, Ankr Network, Gelato
Mainnet Date: April 11th, 2024
Economic Security wanted: $4.67b
Operator limits: None
Points program: N/A

### AVS Description

Xterio MACH AVS is designed to provide fast finality for the Xterio chain, an Optimistic Rollup tailored for gaming applications. As an instance of an AVS specifically configured for an app-specific rollup, Xterio MACH validates blocks produced by the Xterio chain, serving as its fast finality layer.

The Xterio Chain is a collaborative project between Xterio, a prominent Web3 gaming publisher and platform, and AltLayer. Its primary objective is to foster an ecosystem focused on Web3 and AI-powered games, with plans to build an on-chain environment revolving around AAA games utilizing the Xterio native $XTER token.

### Unique Selling Proposition

One of the key USPs of Xterio MACH is its dual-layer approach, leveraging both Ethereum and Binance Smart Chain (BSC) as its underlying Layer 1. By implementing L2 solutions on BSC, Xterio MACH significantly reduces transaction costs, enabling game developers to sponsor players' transaction fees, thereby enhancing the user experience. Simultaneously, MACH AVS on Ethereum ensures fast finality, streamlining the entire transaction lifecycle and reducing the finality time of L2 transactions.

MACH AVS offers interoperability among different L2 solutions, allowing gamers to transfer assets seamlessly from one game to another, which is foundational for the emerging game metaverse ecosystem. The potential for Xterio to have multiple instantiated rollups for different popular games, connected by a unified bridge, further enhances MACH appeal.

### Economic Model

Two avenues for network security are available. The first is ETH delegation, where users can commit LSTs or LRTs, and earn rewards. The second option involves staking AltLayer's native ALT tokens, which also yields rewards for participants.

### Points Program

No official loyalty program has been announced for Xterio Chain. However, speculation about a potential airdrop persists within the community.

The AVS operator guide indicates future rewards for mainnet MACH AVS operators in the form of XTER tokens. Specific details are pending.

### Other Product Information

N/A

### Builders

Xterio founders:

Michael Tong, co-founder, the former COO of Netease;
Jeremy Horn, co-founder, a former VP of Jam City;

AltLayer founders:

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: Binance Labs

Partnerships: BNB Chain, Forge, Chibi Clash

Altlayer 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/0x6026b61bdd2252160691cb3f6005b6b72e0ec044) is owned by unidentified EOA: https://etherscan.io/address/0xd66c6a3f00647fe30df08ec6518c2a301315b664

### Security

No particular audits of Xterio AVS contract have been found.

MACH AVS has been reviewed by:

[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

### 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 the infrastructural nature of the MACH stack, which positions it to be regulatory agnostic.

### Risk Considerations

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