Protocol Specifications

Suzaku specifications

Protocol smart contracts

For detailed documentation, see:

• Suzaku Core Documentation (opens in a new tab)
• Suzaku Contracts Library (opens in a new tab)

Core contracts

The Suzaku Protocol consists of the following core contract modules deployed on the Avalanche C-Chain:

• Collateral modules
  • The DefaultCollateral (opens in a new tab) along with the DefaultCollateralFactory (opens in a new tab) enable ERC-20 tokens to be used as collateral in the protocol
  • Collaterals for assets like $sAVAX and$BTC.b are deployed and available for use
  • See Collateral documentation (opens in a new tab) for details
• Vault modules
  • VaultTokenized (opens in a new tab) contracts accept collateral deposits and issue LST tokens (Liquid Staking Tokens)
  • L1 teams deploy and curate vaults for their networks, with technical support from the Suzaku team
  • Vaults delegate staked tokens to operators who run validators via the Delegator (opens in a new tab) contracts
  • See Vault documentation (opens in a new tab) for details
• Network modules
  • The AvalancheL1Middleware (opens in a new tab) handles operator registration, vault registration, stake accounting, and slashing for Avalanche L1s
  • The L1Registry (opens in a new tab) maintains a registry of eligible Avalanche L1 networks
  • The MiddlewareVaultManager (opens in a new tab) manages vault registration and stake limits for each L1
• Operator modules
  • The OperatorRegistry (opens in a new tab) maintains a registry of eligible operators
  • Operators register and opt-in to L1s and vaults they want to work with
  • Operators run validators for L1s and receive rewards based on validator uptime
• Resolver modules
  • Resolvers detect slashing offenses and can trigger slashing of operator stake
  • Currently, Suzaku launches without slashing, but resolver infrastructure is in place for future implementation
  • See Resolver documentation (opens in a new tab) for details

Avalanche L1 validator set management contracts

The core contracts are used in coordination with validator set management contracts (see ACP-99 (opens in a new tab)) to translate Suzaku operations into Avalanche validator set updates. All L1s on Avalanche maintain their validator set on the P-Chain that acts as a shared registry.

BalancerValidatorManager

The BalancerValidatorManager (opens in a new tab) is an ACP-99-compliant contract that wraps the ICM ValidatorManager (v2.1.0) and implements a validator management system allowing multiple security modules to control portions of the validator set. Each security module is allocated a maximum weight they can assign to their validators.

Key Features:

• Multiple security modules can operate independently to manage validators
• Each security module has a maximum weight allocation they cannot exceed
• Tracks and enforces security module weight limits
• Supports wrapping existing ValidatorManagers that already have validators
• Enforces validator ownership by security modules

Architecture:

• The BalancerValidatorManager owns the underlying ValidatorManager
• Security modules interact with the BalancerValidatorManager, not directly with the ValidatorManager
• All validator operations are tracked and attributed to their managing security module
• Weight limits are enforced at the BalancerValidatorManager level

For complete documentation, see the BalancerValidatorManager README (opens in a new tab).

Security Modules

PoASecurityModule

The PoASecurityModule (opens in a new tab) provides Proof of Authority (PoA) style validator management:

• Owner-controlled validator management using OpenZeppelin's Ownable
• Immutable BalancerValidatorManager reference
• Delegates all operations to the BalancerValidatorManager
• Owner can initiate validator registration, removal, and weight updates
• Anyone can complete operations once acknowledged by the P-Chain (improving liveness)

AvalancheL1Middleware

The AvalancheL1Middleware (opens in a new tab) manages operator registration, vault registration, stake accounting, and slashing for Avalanche L1s in the Suzaku Protocol:

• Handles operator registration and opt-in to L1s
• Manages vault registration and stake limits
• Tracks stake accounting for validators
• Enforces staking requirements (primary and secondary assets)
• Integrates with the BalancerValidatorManager to update validator sets

For more details, see:

• BalancerValidatorManager README (opens in a new tab)
• Suzaku Contracts Library (opens in a new tab)