Relayers

Relayers are specialized software components that form the backbone of Klever Bridge's cross-chain communication system. They serve several critical functions:

  • Cross-Chain Connection: Relayers connect with nodes of bridged blockchains, allowing them to monitor and interact with both blockchains.

  • Transaction Monitoring: Relayers continuously listen to contracts to check for pending batch transactions that need processing.

  • Batch Processing: When enough transactions accumulate to form a batch, relayers initiate the transfer process through the multisig contract.

  • Consensus Mechanism: For security purposes, operations proposed by one relayer require approval from multiple relayers in the network through the multisig contract to reach consensus, ensuring no single entity can control the bridge.

The relayer network is maintained by both the Klever Blockchain Team and community participants. This distributed approach creates a decentralized validation system that functions similarly to a blockchain consensus mechanism, where majority agreement is required before any cross-chain transaction is executed.

Prerequisites to Become a Valid Relayer

To participate as a relayer in the Klever Bridge network, certain requirements must be met to ensure the security and reliability of the cross-chain system:

KFI Staking Requirement

All relayers must stake a specific amount of KFI tokens as a prerequisite to join the network. This staking mechanism serves multiple purposes:

  • Proof of Stake: The staked KFI acts as a form of proof of stake, demonstrating the relayer's commitment to the network and providing economic incentive to act honestly.

  • Security Deposit: The stake functions as a security deposit that can be subject to penalties if the relayer fails to perform their duties correctly or attempts to compromise the bridge's integrity.

  • Network Participation: Only relayers with the required stake are authorized to participate in the consensus mechanism and vote on cross-chain transactions.

Slashing Mechanism

The network implements a slashing mechanism to maintain security and discourage malicious behavior:

  • Misbehavior Detection: When a relayer exhibits malicious behavior or fails to fulfill their responsibilities, other relayers in the network can initiate a slash proposal.

  • Consensus-Based Slashing: Slashing requires consensus from the relayer network. Multiple relayers must vote in favor of the slash before any penalties are applied.

  • Stake Reduction: Upon reaching consensus, a portion of the misbehaving relayer's staked KFI can be slashed (reduced or removed), serving as both punishment and deterrent.

This staking and slashing system ensures that relayers have a strong economic incentive to operate honestly and maintain the security of the bridge network.

Fee Distribution and Relayer Rewards

Relayers are economically incentivized through a fee distribution mechanism that rewards them for their essential role in maintaining the bridge network:

Bridge Transaction Fees

All cross-chain transactions processed through the Klever Bridge incur fees that serve to:

  • Compensate Relayers: Cover the operational costs and provide rewards for relayers who process and validate cross-chain transactions.

  • Network Security: Ensure sustainable economic incentives for maintaining a robust and reliable bridge infrastructure.

  • Resource Coverage: Offset the computational and network resources required for cross-chain transaction processing.

Fee Distribution Among Relayers

The collected fees from bridge transactions are distributed among active relayers in the networ. This fee-sharing mechanism ensures that relayers are fairly compensated for their infrastructure costs and efforts in maintaining the security and functionality of the cross-chain bridge.

Safe Smart Contract and Fee Reserve

When transferring from Klever Blockchain to EVM blockchains, part of the bridged amount stays in the safe smart contract on Klever Blockchain. This reserved amount is used to pay relayer fees.

  • Fee Reserve: A portion of each transfer is held in the safe smart contract instead of being sent to the destination chain.

  • Relayer Payment: The reserved funds create a pool that pays relayers for processing transactions.

  • Later Distribution: Fees are distributed to relayers after the transaction completes, not during the transfer.

This ensures relayers get paid for their work maintaining the bridge network.

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