High Level Overview of Boost V2

The Boost V2 core protocol architecture is designed to enable flexible, secure, and efficient on-chain incentivization. It consists of several key components that work together to validate actions, generate proofs, and distribute rewards. Here’s a breakdown of the architecture:

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Components

  • User: The end-user interacting with the system.
  • ExternalContract: The smart contract with which the user interacts to perform the incentivized action.
  • BackendValidator: An off-chain component that validates the user’s action.
  • Core: The central smart contract of the Boost protocol.
  • SignerValidator: An on-chain component that verifies the proof of the user’s action.

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Process Flow

  1. Action Execution:

    • The User executes an action on the ExternalContract.
    • This action is the behavior that Boost aims to incentivize.

  2. Off-chain Validation:

    • The BackendValidator observes and validates the action off-chain.
    • This allows for complex validation logic without incurring high gas costs.

  3. Signature Generation:

    • Upon successful validation, the BackendValidator generates a cryptographic signature.
    • This signature serves as a proof that the user performed the specified action.

  4. Signature Submission:

    • The User submits the signature to the Core contract.
    • This step initiates the on-chain portion of the claiming process.

  1. On-chain Verification:

    • The Core contract calls the SignerValidator with the provided signature.
    • The SignerValidator uses EIP-712 signature validation to verify the proof.
    • EIP-712 provides a secure method for signing and verifying structured data.

  2. Reward Distribution:

    • If the signature is valid, the Core contract distributes the incentive to the User.

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Choosing a Reward

When setting up a Boost, it’s crucial to choose an appropriate reward structure that aligns with your project’s goals and tokenomics. Here are some considerations:

  1. Token Type:

    • Native tokens (e.g., ETH)
    • Project-specific tokens
    • Stablecoins (e.g., USDC, DAI)

  2. Reward Amount:

    • Fixed amount per action
    • Percentage-based rewards
    • Tiered rewards based on action value or user status

  3. Reward Frequency:

    • Immediate distribution upon action completion
    • Periodic distributions (e.g., daily, weekly)
    • Milestone-based rewards

  4. Reward Caps:

    • Per-user caps to prevent exploitation
    • Total reward caps for budget control
    • Time-based caps (e.g., daily limits)

  5. Vesting or Lock-up Periods:

    • Immediate availability
    • Gradual vesting to encourage long-term engagement
    • Lock-up periods for larger rewards

When choosing a reward structure, consider factors such as:

  • The perceived value of the incentivized action
  • Your project’s token supply and inflation rate
  • User behavior and motivation
  • Regulatory compliance and tax implications

A well-designed reward structure can effectively drive desired user actions while maintaining the economic balance of your ecosystem.

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Key Improvements in V2

  • Flexibility: The architecture allows for incentivizing actions on any external contract, greatly expanding the use cases for Boost.
  • Gas Efficiency: By moving complex validation off-chain and only verifying a compact signature on-chain, gas costs are significantly reduced.
  • Security: The use of EIP-712 for structured data signing ensures that the proofs are secure and tamper-resistant.
  • Scalability: The off-chain validation allows for handling complex conditions and high volumes of actions without congesting the blockchain.
  • Modularity: The separation of concerns between different components (ExternalContract, BackendValidator, Core, SignerValidator) allows for easier upgrades and maintenance.

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How it works

Boost V2 offers a comprehensive suite of features for deploying, managing, and interacting with on-chain incentives. Here’s an overview of key processes:

  1. Deploying Boosts Learn how to set up and deploy new Boost incentive programs.

  2. Claiming Rewards Explore the user journey for interacting with a Boost and claiming earned rewards.

  3. Use Cases Discover various applications and scenarios where Boost V2 can be effectively implemented.

Each of these topics is covered in detail in its respective page, providing step-by-step guidance and best practices for leveraging the full potential of Boost V2.