Skip to Content
Join 40k+ strong ODX Community today! Open Discord
ODX Network Security

Security: Protecting xAssets in ODX

Current Security Model: Proof-of-Authority (PoA)

ODX currently operates as a federated PoA (Proof-of-Authority) network, prioritizing fast execution and reliability while ensuring xAssets remain fully secured.

In the PoA model:

  • A set of trusted validators oversee transactions and cross-chain operations.
  • Validators sign off-chain approvals, preventing unauthorized asset movement.
  • Smart contracts enforce 1:1 pegging, ensuring xAssets are always backed.

PoA provides high-speed finality and secure execution, but it relies on validator reputation rather than economic incentives. To strengthen security, ODX is transitioning towards an economic security model.

Transitioning to Economic Security

To increase decentralization and resilience, ODX is integrating economic security mechanisms. This shift ensures validators have financial skin in the game, reducing risks of misbehavior.

Key Upgrades

  1. Staking Mechanisms

    • Validators will stake collateral, aligning incentives with network integrity.
    • Misconduct (e.g., signing invalid transactions) leads to slashing penalties.

  2. EigenLayer Integration

    • ODX will integrate with EigenLayer, leveraging Ethereum’s restaked security.
    • EigenLayer’s staking mechanism enhances validator accountability without compromising speed.

  3. Permissioned → Open Validator Set

    • Initially, validators are trusted participants.
    • Over time, staking allows new validators to enter, increasing decentralization.

Path to Full Decentralization

⚠️

ODX’s long-term vision is to evolve into a fully open and decentralized network, ensuring maximum security and censorship resistance.

How ODX Moves Toward Decentralization

1. Hybrid PoA + Economic Security

PoA validators begin staking collateral, introducing financial penalties for misbehavior.

2. Open Validator Participation

  • Staking allows permissionless entry for new validators.
  • Governance mechanisms ensure fairness and security.

3. Full Economic Security & Governance

  • PoA is phased out as validators become fully economically bonded.
  • On-chain governance replaces centralized decision-making.

Final Security Considerations

  • Slashing & Dispute Mechanisms: Detect and penalize validator misbehavior.
  • Continuous Audits: Smart contracts undergo regular audits to prevent exploits.
  • Resilient Infrastructure: Fallback mechanisms ensure security even under validator failures.

ODX is securing xAssets today with PoA while building the foundation for a fully decentralized, economically secure network. Security evolves alongside decentralization, ensuring long-term integrity.

YieldReserves