Overview

Architecture and the Fragmentation Problem

Most proof-of-stake networks only secure their on-chain state, leaving oracles, bridging solutions, or complex rollup sequencers to figure out their own separate approach. This leads to “fragmented security,” where each service tries to set up a staking token or rely on centralized signers, risking trust failures. MilkyWay addresses fragmentation by letting LSD stakers restake their tokens in specialized modules that define their own slash rules. If watchers or operators fail, the chain triggers slash events, aligning everyone’s incentives for honest operation.

Emergence of Restaking

Background

Proof-of-Stake replaces heavy mining with staked tokens, improving scalability and lowering energy use. Still, standard PoS only covers a chain’s internal execution. Many off-chain services or cross-chain tasks remain outside its scope. Restaking reuses staked collateral to secure these additional tasks. Polkadot and Cosmos introduced forms of shared security, and EigenLayer popularized the concept of letting stakers “restake” ETH to secure new protocols. MilkyWay builds on these efforts by supporting LSD and user-controlled slash logic, giving each module or bridging task a way to borrow security from an existing staked pool.

MilkyWay’s Restaking Approach

MilkyWay merges LSD tokens with a flexible restaking module. By letting stakers keep their tokens liquid, they can use them in DeFi or bridging solutions while also allocating part of that stake to bridging watchers, oracles, or advanced data tasks. Each specialized service (an Actively Validated Service, or AVS) defines how slash events occur, how rewards are paid, and which tokens or LSD it accepts. This approach benefits both stakers seeking diverse yields and developers seeking a large, established validator pool without designing an entirely new staking mechanism.

• Flexible Slash Conditions: Each specialized module chooses from stake slash, jail slash, or burn slash.

• User-Driven Opt-In: Restakers pick which tasks to back.

• Multi-Token Collateral: LSD tokens from TIA, BABY, or INIT, plus stable assets if the module accepts them.

• Lower Overhead: Developers get immediate access to a staked pool without building a new validation token or inflation scheme.

Supporting Assets

Currently Supported

• Native tokens: TIA, INIT, BABY

• LSTs: milkTIA, milkINIT, milkBABY, dTIA, stTIA, etc.

• Stablecoins: noble USDC

Coming Soon

• Stablecoins such as USDT

• Other major assets like BTC, ETH, and more.