What is AltLayer?

What is Altlayer?

AltLayer is a decentralized protocol designed to enhance rollups by combining stacks like OP Stack and Arbitrum Orbit with EigenLayer’s restaking mechanism. Its key components, VITAL, MACH, and SQUAD, improve security, decentralization, and efficiency, offering decentralized verification, faster finality, and sequencing.

The Rollups-as-a-Service (RaaS) platform is a core feature, allowing developers to create custom rollups quickly and easily. Whether for short-term or long-term use, the RaaS platform caters to developers and non-technical users, providing flexibility for different applications.

AltLayer simplifies rollup deployment, reducing costs and development time. Multi-chain and multi-VM support drives faster innovation while ensuring strong security and decentralization.

‍

How Does AltLayer Work?

AltLayer scales rollup security and performance using sophisticated tech. It combines existing rollup stacks like OP Stack or ZKStack with EigenLayer’s restaking mechanism, creating restaked rollups.

These restaked rollups bring better decentralization and security by using staked assets like ETH to bootstrap network security. Here’s how the key components break down:

• Restaked Rollups: These rollups combine different stacks with EigenLayer’s restaking to secure rollups using already staked assets, ensuring both decentralization and strong crypto-economic security.
• VITAL: Acts as a verification layer, ensuring that the state of the rollup is correct. It can challenge invalid state roots via a bisection protocol or demand a ZK proof, making sure transactions are legit before they're settled on the base layer.
• MACH: This is the fast finality layer for Ethereum rollups. MACH ensures that rollups finalize quickly and securely, running in three modes, Pessimistic, Optimistic, and Validity Proof, to verify state transitions in real time.
• SQUAD: Decentralizes the sequencing process by selecting multiple sequencers through EigenLayer’s staking. It reduces reliance on a single centralized sequencer and ensures transactions are processed smoothly and securely.

‍

AltLayer Restaked Rollup Examples

AltLayer Restaked Rollups are pushing the boundaries of decentralized applications and fast finality across different networks. Here’s a closer look at some protocol’s built as restaked rollups:

• DODOchain: As an Omni-Trading Layer3, DODOchain connects Ethereum rollups and Bitcoin, simplifying cross-chain swaps. By using AltLayer and EigenLayer for restaking, it consolidates liquidity and boosts security with decentralized verification and quick transaction finality.
• GM Network: This network is all about making AIoT (AI + IoT) more accessible. With its modular setup, GM Network lowers costs and development barriers. It leverages AltLayer’s restaking for better security and scalability, with three layers dedicated to assets, data, and users.
• Cyber: Cyber is focused on the social side of Web3, enabling developers to build dApps for connecting, creating, and sharing value. With AltLayer’s integration, Cyber ensures decentralized verification and offers rewards through its native pools.

These rollups show how AltLayer’s technology enhances efficiency and security across various sectors, from cross-chain trading to AIoT and social dApps.

‍

$ALT Staking and Restaking Explained

In the AltLayer ecosystem, staking $ALT lets users lock their tokens to support the network's security and governance. Stakers help power key functions like decentralized verification and rollup finality through the Aggregate Verifier Services (AVSs) and, in return, earn $ALT rewards (currently 14% APY).

Restaking takes it up a notch by letting users convert staked ALT (stALT) into restaked ALT (reALT), further strengthening network security. It also allows participants to boost their rewards while playing a bigger role in securing rollups and other decentralized services.

‍

AltLayer Tokenomics

AltLayer’s tokenomics are designed to incentivize growth, with $ALT at the center of the ecosystem. The token powers key activities such as staking for Aggregate Verifier Services (AVSs), governance voting, paying fees, and accessing premium features. 

Here is a breakdown of its supply and distribution:

• Total Supply: $ALT has a total supply of 10 billion tokens.
• Circulating Supply at Launch: 1.1 billion tokens (11% of the total supply) were in circulation at launch.
• Private Sale Pricing: $ALT sold in two private rounds—$0.008 USD in the first and $0.018 USD in the second.
• Token Allocation: Distribution breaks down as 21.5% to the treasury, 20% for protocol development, 18.5% to investors, 15% to the team, 15% for ecosystem and community, 5% to advisors, and 5% to the Binance Startup Team.
• Token Launch: Launched on January 25, 2024, through Binance Launchpool, where users staked BNB and FDUSD to farm $ALT.
• Community Airdrop: An ALT airdrop rewarded early supporters, with eligibility based on NFT holdings and campaign participation. The snapshot was taken on January 17, 2024.

AltLayer’s tokenomics are designed to ensure balanced token distribution while aligning stakeholder incentives for long-term success.

‍

Bottom Line

AltLayer delivers a highly technical solution for scaling rollups by combining EigenLayer’s restaking with decentralized verification, sequencing, and fast finality. This design enhances security and reduces reliance on centralized systems.

With $ALT as its native token, AltLayer drives participation through staking, governance, and rewards, creating a scalable, efficient environment for decentralized applications.

‍