Use Cases

Oracles

DeFi protocols rely on oracles for asset pricing or external events. Oracles that stake LSD through MilkyWay can be slashed if they provide false data. This approach forces them to be more trustworthy, since losing stake is a direct penalty for error or manipulation.

Bridges

Bridging solutions link blockchains for asset and data transfers but face historical exploits. MilkyWay watchers stake LSD to confirm cross-chain finality, punishing watchers who fail. This method outperforms centralized bridging or multi-sig solutions by distributing security across a large LSD base.

Data Availability

A data availability (DA) layer might otherwise run its own chain or token. MilkyWay restaking allows a DA module to share LSD-based collateral. If the DA fails to deliver data, watchers lose part of their stake, aligning incentives for consistent data delivery.

RPC Services

User wallets communicate with blockchains via RPC endpoints. If these endpoints are compromised, transactions and data can be censored or altered. By staking LSD, an RPC node shows financial commitment. The chain slashes nodes that misbehave, encouraging them to remain stable and transparent.

Sequencers

Rollups often rely on a single sequencer that can reorder or censor transactions. Distributing sequencing among LSD-backed operators prevents a single point of failure. If a sequencer acts unfairly, watchers can propose a slash, keeping the system honest.

Real-World Assets (RWA)

In some networks, real-world asset tokenization is growing in popularity. By using restaking from MilkyWay, an RWA project can secure off-chain data, such as property deeds or commodity records, through watchers who stake LSD. If they confirm fraudulent claims or overlook important checks, they face slash penalties. This brings stronger accountability to RWA tokenization because watchers have financial skin in the game. RWA modules can register as Actively Validated Services, define slash conditions for verifying off-chain ownership or legal documents, and pay stakers who provide real security. While certain aspects of RWA remain off-chain (like legal frameworks or property laws), restaking ensures watchers who give false validations are penalized on the chain.