How It Works
- A user picks a validator, completes regulated onboarding once, and the validator proofs become part of Hotstuff canonical state. From there, fiat-to-crypto flows, payments, and remittances become just another state transition on DracoBFT. Any front-end can route through that validator mesh.
- For core trading operations on Hotstuff exchange, validators become access points for deep stablecoin liquidity via enabling stablecoin-to-stablecoin swaps at a protocol level, enabling unparalleled capital efficiency and better risk management.
Onboarding Flow
| Step | Description |
|---|---|
| 1 | User selects a validator based on geographic preference. |
| 2 | User completes regulated onboarding once via the validator integration. |
| 3 | Validator generates zkTLS proofs of user verification status. |
| 4 | Auxiliary verification loops validate proofs via consensus quorum. |
| 5 | State machine updates with verified user-validator linkages. |
Validator Staking
Validators stake protocol tokens proportional to onboarded users, with slashing conditions for:- Downtime.
- Fraud.
- Privacy leakage.
- Non-compliance.
Uber for Financial Access
Underneath all of this is a different validator economic model. Gas on Hotstuff L1 is designed to be zero for end users. DeFi flows are paid for by protocol-level MEV capture, vault revenues, and service fees, not by nickel-and-diming traders on gas. Validators monetize flows and access, not just inflation. They earn from:- Providing compliant fiat and payment rails.
- Powering on/off-ramps, remittance corridors, and card/account infrastructure.
- Participating in multi-venue liquidity and strategy vaults.
- Future consensus and block production.
Revenue Streams
| Stream | Description |
|---|---|
| Fiat Rails | Compliant fiat and payment rails. |
| On/Off-Ramps | Remittance corridors, card and account infrastructure. |
| Liquidity | Multi-venue liquidity and strategy vaults. |
| Consensus | Future block production rewards. |