Architecture

We summarise the user flows and a brief outline of the technical stack behind Demether's first two products in the section below.

The architecture of Demether can be divided into two primary layers.

Layer 1: Orchestration

The first (base) layer of the protocol handles the mechanisms for a foundation to mobilise capital, built up with a combination of on-chain and off-chain systems working together.

On chain

The vast majority of protocol activity is engaging with and directing on-chain activity; the most important element of which is the minting and retention of Demether's various yield bearing tokens such as demETH or demSOL. In a nutshell, the Demether platform aligns the incentives of users/capital with that of blockchain foundations and rewards them with GRAIN tokens.

See GRAIN token section for more details.

Off chain

Much of the calculations behind an initial point scheme, logic to focus token-based incentives on desirable user activities and some oracle activities may be taken off chain to drive initial efficiencies and preserve user experience.

Layer 2: Value capture

The second layer operates above the Orchestration layer. This is entirely related to on-chain activities of capture liquidity before movement between chains is incentivised.

Value is captured through a suite of yield bearing tokens:

• $demETH: a liquid restaking token with ETH as collateral;

• $demSOL: a liquid restaking token with SOL as collateral.

We focus on yield as Demether's core incentive for users to mint and bridge the token, capturing value within the protocol.

All of our yield bearing tokens are eligible to receive a loyalty yield boost through $GRAIN token emissions if they are retained in a given wallet within a partner ecosystem.