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Aegis Network - Gas Economics

This document explains who pays for gas in different scenarios and the economic incentives.

Overview

The Aegis Network uses a "Pull Model" for rewards and a "Shared Cost" model for pause events. Understanding these economics is crucial for node operators.

┌─────────────────────────────────────────────────────────────────────────┐
│                           GAS FLOW DIAGRAM                               │
├─────────────────────────────────────────────────────────────────────────┤
│                                                                          │
│  NODE REGISTRATION                    DAILY REWARDS                      │
│  ──────────────────                   ─────────────                      │
│  Node pays gas ────► registerNode()   Node pays gas ────► claimRewards() │
│                      (~150k gas)                          (~80k gas)     │
│                                       SENTR minted to node               │
│                                                                          │
│  PAUSE EVENT (Attack Detected)                                           │
│  ─────────────────────────────                                           │
│  Node1 pays ────► createPauseRequest() ─────────────────────────────────►│
│                   (~100k gas)                                            │
│  Node2 pays ────► signPauseRequest() ───────────────────────────────────►│
│                   (~50k gas)                                             │
│  Node3 pays ────► signPauseRequest() ───────────────────────────────────►│
│                   (~50k gas)                                             │
│  Node4 pays ────► signPauseRequest() ───────────────────────────────────►│
│                   (~50k gas)                                             │
│  Node5 pays ────► signPauseRequest() ── THRESHOLD MET ──► pause() + claim│
│                   (~200k gas)           Protocol paused!                 │
│                                                                          │
│  BOUNTY PAYOUT (After 48h)                                               │
│  ─────────────────────────                                               │
│  Anyone pays ────► processPayout() ──► Bounty distributed to all signers │
│                    (~150k gas)                                           │
│                                                                          │
└─────────────────────────────────────────────────────────────────────────┘

1. Node Registration & Staking

Who Pays: Node Operator

Action Function Est. Gas Est. Cost (@ 30 gwei)
Register Node registerNode() ~150,000 ~0.0045 ETH
Increase Stake increaseNodeStake() ~80,000 ~0.0024 ETH
Request Unstake requestNodeUnstake() ~50,000 ~0.0015 ETH
Complete Unstake completeNodeUnstake() ~100,000 ~0.003 ETH

Note: These are one-time or infrequent costs. Node registration is typically done once.

2. Daily Rewards (Pull Model)

Who Pays: Node Operator

// From SentinelRegistry.sol
function claimRewards() external nonReentrant {
    // Node pays gas to call this
    uint256 pendingRewards = calculatePendingRewards(msg.sender);
    token.mint(msg.sender, pendingRewards);  // New tokens minted
}
Action Function Est. Gas Est. Cost (@ 30 gwei)
Claim Rewards claimRewards() ~80,000 ~0.0024 ETH

How Rewards Work

  1. Rewards accumulate based on:

    • Node's stake proportion: nodeStake / totalNodeStake
    • Time since last claim
    • Total protocol TVL (affects daily reward pool)

  2. Economic Calculation:

    Daily Reward Pool = 50 SENTR / sqrt(TVL in millions)
Node Share = (Node Stake / Total Node Stake) × Daily Pool

  3. Break-even Analysis (example @ $1 SENTR, 30 gwei gas):

    • Claim cost: 0.0024 ETH ($6 @ $2500/ETH)
    • Need at least 6 SENTR reward to break even
    • Recommendation: Claim weekly or monthly, not daily

Reward Claiming Strategy

┌─────────────────────────────────────────────────────────────────┐
│                   OPTIMAL CLAIM FREQUENCY                        │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│  Small Stake (10k SENTR)     → Claim monthly                    │
│  Medium Stake (50k SENTR)    → Claim weekly                     │
│  Large Stake (100k+ SENTR)   → Claim every few days             │
│                                                                  │
│  Formula: Claim when (Pending Rewards × Price) > (Gas Cost × 2) │
│                                                                  │
└─────────────────────────────────────────────────────────────────┘

3. Pause Events (Shared Cost Model)

Who Pays: All Participating Nodes

A pause requires multiple nodes to sign. Each signer pays their own gas.

PAUSE EVENT COST DISTRIBUTION
═════════════════════════════

Node 1 (Initiator):
  └─► createPauseRequest()   ~100,000 gas   ~0.003 ETH

Node 2-4 (Signers):
  └─► signPauseRequest()     ~50,000 gas    ~0.0015 ETH each

Node 5 (Final Signer - Triggers Execution):
  └─► signPauseRequest()     ~200,000 gas   ~0.006 ETH
      + _executePause()
      + shield.emergencyPauseAndClaim()

TOTAL COST: ~400,000 gas (~0.012 ETH @ 30 gwei)
SHARED BY: 5 nodes
AVERAGE PER NODE: ~80,000 gas (~0.0024 ETH)

Why the Last Signer Pays More

When the signature threshold is met, the last signer's transaction also:

  1. Calls _executePause()
  2. Calls protocol.pause()
  3. Calls shield.emergencyPauseAndClaim()

This is intentional - incentivizes being an early signer.

Economic Incentive

Actor Gas Cost Bounty Share Net Profit
Node 1 (Initiator) ~0.003 ETH 20% of bounty Positive
Nodes 2-4 ~0.0015 ETH each 20% each Positive
Node 5 (Executor) ~0.006 ETH 20% Positive

Example: For a $50,000 bounty with 5 signers:

  • Each node gets: $10,000
  • Gas cost: ~$15-30
  • Net profit: ~$9,970-9,985 per node

4. Bounty Payout (After Dispute Window)

Who Pays: Anyone (typically a node)

// From SentinelShield.sol
function processPayout(uint256 claimId) external {
    // Anyone can call after 48h
    // Bounty distributed to all signers
}
Action Function Est. Gas Est. Cost (@ 30 gwei)
Process Payout processPayout() ~150,000 ~0.0045 ETH

Who Should Call It?

  • Typically: One of the signers calls it to trigger their payout
  • Incentive: First caller pays gas but everyone gets paid
  • Alternative: Protocol could implement a keeper bot

5. Protocol Registration

Who Pays: Protocol Team

Action Function Est. Gas Est. Cost (@ 30 gwei)
Register Protocol registerProtocol() ~200,000 ~0.006 ETH
Deposit Bounty depositBounty() ~80,000 ~0.0024 ETH
Withdraw Bounty withdrawBounty() ~100,000 ~0.003 ETH

6. Gas Optimization Strategies

For Node Operators

  1. Batch Claims: Claim rewards less frequently

    Weekly claim: 4x gas savings vs daily
Monthly claim: ~28x gas savings vs daily

  2. Gas Price Timing: Submit transactions during low gas periods

    • Best times: Weekends, late night UTC
    • Use gas trackers: etherscan.io/gastracker

  3. Early Signing: Sign pause requests early (less gas than being executor)

For the Protocol (Future Improvements)

  1. Claim Aggregation: Allow batch claiming for multiple nodes
  2. Gas Subsidies: Protocol could subsidize pause execution gas
  3. L2 Deployment: Deploy on Arbitrum/Optimism for lower gas

7. Cost Summary Table

Action Who Pays Frequency Est. Gas Est. Cost
Register Node Node Once 150k 0.0045 ETH
Claim Rewards Node Weekly/Monthly 80k 0.0024 ETH
Create Pause Request Initiator Node Per attack 100k 0.003 ETH
Sign Pause Request Each Signer Per attack 50k 0.0015 ETH
Execute Pause Last Signer Per attack 200k 0.006 ETH
Process Bounty Anyone Per attack 150k 0.0045 ETH
Register Protocol Protocol Once 200k 0.006 ETH
Deposit Bounty Protocol Periodic 80k 0.0024 ETH

8. Economic Model Summary

┌─────────────────────────────────────────────────────────────────────────┐
│                     NODE OPERATOR ECONOMICS                              │
├─────────────────────────────────────────────────────────────────────────┤
│                                                                          │
│  INCOME                              │  EXPENSES                         │
│  ──────                              │  ────────                         │
│  + Daily SENTR rewards (minted)      │  - Initial registration gas       │
│  + Bounty share from pauses          │  - Reward claim gas               │
│  + SENTR price appreciation          │  - Pause signing gas              │
│                                      │  - Server/infrastructure costs    │
│                                                                          │
│  BREAK-EVEN EXAMPLE (10k SENTR stake, $1 SENTR price):                  │
│  ─────────────────────────────────────────────────────                  │
│  Monthly rewards: ~150 SENTR ($150)                                     │
│  Monthly gas costs: ~$20 (4 claims + 2 pause events)                    │
│  Infrastructure: ~$50/month (VPS)                                       │
│  ─────────────────────────────                                          │
│  Net profit: ~$80/month                                                 │
│                                                                          │
│  + Bounties from successful pauses (variable, potentially $1000s)       │
│                                                                          │
└─────────────────────────────────────────────────────────────────────────┘

9. Future Improvements (Roadmap)

Improvement Description Gas Savings
L2 Deployment Deploy on Arbitrum/Optimism 90-95%
Batch Claims Claim for multiple periods at once 50%
Meta-transactions Gasless transactions via relayer 100% (for users)
Account Abstraction ERC-4337 smart accounts Variable

10. FAQ

Q: What if I can't afford gas for a pause signature? A: You can skip signing, but you won't receive bounty share. Other nodes will still reach threshold.

Q: Can I automate reward claims? A: Yes, use a keeper service (like Chainlink Automation) to claim when profitable.

Q: What happens if gas spikes during an attack? A: The economic incentive (bounty) typically far exceeds gas costs. A $50k bounty justifies even $500 in gas.

Q: Who pays for the protocol's pause() call? A: The last signing node pays this as part of execution. It's included in their gas cost.