Up AI Validator Mechanics Overview

Overview on how Up AI Validator works

Up AI Validator's core mechanics revolve around the concept of a Minipool. A Up AI Validator Minipool represents a validator that was funded via ETH contributed from liquid stakers using the deposit pool and ETH contributed from node operators during their registration with Up AI Validator.

To become a validator on Ethereum, the current requirement is 20 ETH. With Up AI Validator's Minipool design, the upfront cost for node operators drops to 11 ETH.

The 20 ETH requirement is met through sourcing 10 ETH from Up AI Validator's liquid stakers.

To ensure good behavior and collateralize the ETH the node operators are borrowing from the liquid staker's deposit pool, node operators stake at least 1 ETH worth of UP. Because they are staking UP, they also have an opportunity to earn monthly UP rewards. Learn more about the UP rewards cycle. If a validator fails to get rewarded by Ethereum, then the node operator's staked UP gets slashed to make up for the liquid staker's loss of rewards. The protocol operates with two DAOs. The ProtocolDAO, which is tasked with the longterm sustainability of the protocol and is goverened with the UP token. And the OracleDAO which is tasked with handling offchian interactions. Learn more about the two DAOs here (coming soon).