---
# System prepended metadata

title: 'Grant Proposal: Validator Management Coprocessor AVS with YieldNest'

---

# Grant Proposal: Validator Management Coprocessor AVS with YieldNest

## Introduction

This proposal seeks a grant of $150,000 from the Eigen Foundation to develop a Validator Management Coprocessor AVS in collaboration with YieldNest. This project aims to enhance the security and efficiency of validator operations within the EigenLayer ecosystem to reduce complexity and increase the security of EigenPod validator coprocessor management.

## Background

The EigenLayer ecosystem is rapidly expanding, with an increasing number of validators participating in securing the network. As the network grows, so does the complexity of managing validator operations. We propose to develop a Layer 1 Validator coprocessor AVS that will streamline validator management, improve security, and ensure proof management.

When creating ynETH, the native restaking LRT at YieldNest, we faced many challenges related to Validator creation and management. Interactions between the Beacon chain, execution chain, and operators that provision validators requires various interconnected offchain processes.

The validator coprocesses require a validation service to be robust. We created a 3-node service called RegVal, which registers validators onchain with EigenPods. This system currently runs in isolated cloud environments, but really should operate as an AVS. 

Here is an early architectural sketch that was used for the first version of RegVal. We later required 3 different roles, proposer, approver and executor which began to resemble a more trustless architecture. 

![YieldNest Engineering.excalidraw](https://hackmd.io/_uploads/ry8iyEBlke.svg)


As our protocol evolves, so do the coprocessing requirements to harvest rewards, exit validators, as well as provisioning requirements. For these reasons we propose to build a validator management service for the ecosystem.

## Objectives

1. **Develop a Validator Management Coprocessor AVS**: Create a robust and scalable AVS that integrates seamlessly with the EigenLayer infrastructure.
2. **Enhance Security**: Implement advanced security features to protect against unauthorized access and ensure the integrity of validator operations.
3. **Improve Efficiency**: Automate routine tasks and optimize resource allocation to reduce operational overhead for validators.
4. **Ensure Compliance**: Develop tools and protocols to ensure validators adhere to network rules and regulations.

## Project Plan

### Phase 1: Research and Design (Month 1)
- Conduct a comprehensive analysis of current validator management challenges.
- Design the architecture of the coprocessor AVS, focusing on security, scalability, and integration with EigenLayer.

### Phase 2: Development (Month 2-4)
- Develop the core components of the coprocessor AVS.
- Implement security protocols and compliance tools.
- Integrate with existing EigenLayer infrastructure.

### Phase 3: Testing and Optimization (Month 5-6)
- Conduct extensive testing to ensure functionality and security.
- Optimize performance and resource utilization.

### Phase 4: Deployment and Support (Month ~)
- Deploy the coprocessor AVS within the EigenLayer network.
- Provide ongoing support and updates to ensure continued performance and security.

## Budget

The total budget for this project is $150,000, which will be allocated as follows:

- **Research and Design**: $50,000
- **Development**: $50,000
- **Testing and Optimization**: $25,000
- **Deployment and Support**: $25,000

## Conclusion

The development of a Validator Management Coprocessor AVS with Yieldnest will significantly enhance the security and efficiency of the EigenLayer network. By investing in this project, the Eigen Foundation will support the growth and sustainability of its ecosystem, ensuring it remains at the forefront of blockchain innovation.

We look forward to the opportunity to collaborate with the Eigen Foundation on this important initiative.

## Contact Information

- **Project Lead**: Dan
- **Email**: dan@yieldnest.finance
- **Organization**: YieldNest