Technical Architecture: bpETH
Overview of our architecture and smart-contracts.
Last updated
Overview of our architecture and smart-contracts.
Last updated
The high-level architecture including key contracts and parties involved can be seen below
BPM Finance's architecture has several key functions:
Pool restaker’s assets to mint bpETH: our contracts collect deposits from users and mint the equivalent bpETH based on its exchange rate.
Delegate assets to Eigenlayer Operators: Operators are in charge of running Actively Validated Services (AVS’s) and ensure that all rules are followed to avoid loss of restaker’s funds due to slashing.
Manage restaking strategy: AVS’s pay BPM Finance rewards for the work Operators provide. BPM Finance selects operators and AVS’s for users and takes care of the capital delegation.
Collect and distribute rewards: our contracts ensure that all rewards are fairly distributed to restakers and operators while taking a fee to finance the protocol’s development.
The deposit pool serves as a vault allowing restakers to convert their liquid staked tokens and acquire LRT tokens based on the LRT exchange rate. Remember that the LRT is a reward bearing token, hences its price will increase depending on the rewards and subsequently be higher than ETH. The deposit pool simplifies the process for restakers by making the asset delegation process and rewards collection easy.
The node delegator contract oversees the transfer of deposited liquid staked assets to contracts for each selected operators on Eigenlayer. Assets within each node delegator are delegated to a single operator, thereby ensuring economic security across all nodes operated by said operator for different AVS’s.
Node delegators also handle reward claims and execute various strategies for different rewards, thereby automating the reward redemption process for restakers and facilitating substantial gas savings.
The Withdrawal Manager module facilitates the conversion of LRT tokens into a portion of all assets managed by the protocol. Redeemers will receive rewards obtained by Node Delegators for delegating to Operators subscribed to various AVS’s.
The withdrawal functionality is still partially under development due to its complexity, which is primarily due to EigenLayer’s 7-day withdrawal delay whereby user funds can not be immediately be withdrawn. For now, you can withdraw the LRT as one of the LSTs supported. We are working on supporting ETH withdrawals as well.
