How it works
xDLOL is not a bridge or a messaging layer.
It’s a new cross-chain primitive: a trustless, root-synchronized staking infrastructure that keeps token balances, vault states, and yield data consistent across all chains.
At its core, xDLOL introduces a shared economic state layer for DeFi. This enables vaults, LSTs, and LRTs to operate seamlessly across chains without duplicating logic, issuing synthetic wrappers, or requiring new sequencers or validator sets.
Core Components
xDLOL operates using two globally synchronized Merkle roots on each chain:
liquidityRoot
Tracks user balances in all supported staking vaults and token pools.
dataRoot
Stores application-level metadata—such as restaking points, vault configuration, or reward indexes.
These roots are synchronized across all connected chains every few seconds (epoch), ensuring every chain has a verifiable snapshot of the others’ state.
Execution Flow
1. Epoch-Based Root Synchronization
Every chain running xDLOL publishes its local liquidityRoot and dataRoot each epoch (e.g. every 4 seconds).
These roots are then broadcast and written to all other chains using LayerZero.
Each destination chain stores these roots in the xDLOL contract for verifiable reference.
2. Verifiable State Settlement by Settlers
Off-chain actors (“Settlers”) submit Merkle proofs for user balances and contract state, using the synchronized roots.
Unlike validators or relayers, Settlers are trustless—their data is verified on-chain.
Once submitted, this data becomes readable across chains with no sync latency.
When a user interacts (e.g. transfers or redeems a staked token), xDLOL calls lzRead() to fetch the user’s most recent aggregate state from all other chains.
If the request is valid—e.g. no double-spend risk and total debt ≤ total balance—the action proceeds.
The result: users can move, trade, or use staked assets on any chain, while all state is verified and up-to-date.
Example Use Case: Cross-Chain ETH Restaking
A user on Arbitrum deposits ETH into an ezETH vault built on xDLOL.
That ETH is staked on Ethereum mainnet, and liquidityRoot reflects the updated balance.
Within one epoch, the updated root is written to Arbitrum, Optimism, and Base.
The user can now:
View their synced ezETH balance on any chain
Use ezETH in other DeFi apps without claiming or bridging
Earn yield continuously, even while moving chains
Summary
xDLOL abstracts away cross-chain fragmentation and replaces it with a shared, root-synced economic layer. Every vault, restaking protocol, and user position stays composable across chains—with verifiability, no new trust assumptions, and zero bridging UX.
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