Introduction

In the Pell Network, operators are specialized entities, whether individuals or organizations, that take on the responsibility of running infrastructure for decentralized networks. This includes networks both within and outside the Pell Network ecosystem. Operators play a vital role by providing a range of services, such as running validators, to Decentralized Validated Services (DVSs). By doing so, they significantly enhance the security, reliability, and overall functionality of the networks they support.

In a manner similar to Ethereum validators who must stake ETH to secure the network, Pell operators are required to pledge staked BTC (restake) to secure and provide various services to Decentralized Validated Services (DVSs). Operators can choose to restake their own BTC, either in its native form or through liquid staking tokens (such as Lombard’s LBTC). Alternatively, they can receive token delegations from other restakers within the network. This system allows Pell to enable restakers to earn enhanced yields across multiple DVSs by extending the economic security provided by BTC and its liquid staking derivatives (LSDs).

Becoming an operator

The Pell protocol has created an Operator Registry that records interactions with the protocol and allows participants to attach credentials and other data to operator entities. In the initial version, this includes metadata provided by the operators themselves, as well as data generated through interactions with the Pell protocol, such as:

• Networks that the operator has chosen to participate in

• Associated vaults and restaked collateral from those vaults

• Penalty records and all other interaction history within the Pell ecosystem

One of the key advantages of the Pell protocol and its built-in vault system is that operators can receive stake support from different partners through vaults for the same set of node infrastructure. This system allows node operators to acquire stake from a diverse set of stakers with varying risk profiles without needing to set up isolated infrastructure for each staker.

Becoming an operator in the Pell Network does not require a specific amount of delegated restaked TVL. In the Pell Network, operators can be an EOA or a contract registered in the OperatorRegistry. An address can simultaneously act as both a restaker (participating in liquid or native restaking) and an operator, but this dual role is not mandatory. Operators can participate in the Pell Network without holding any restaked tokens. Most operators will receive token delegations from other restakers within the network, but they may also choose to self-delegate by allocating their own restaked token balance.

Operators can flexibly choose to join one or more quorums based on their preferences and the requirements of the DVS they support. As long as operators have sufficient TVL to support them, they can join any number of quorums.