Let's delve deeper into the integral role of Validators on Hubblenet.
The Hubblenet is a blockchain purpose-built for perpetual contracts (perps). By putting part of the app logic in the VM, validators play an integral role in making Hubble Exchange truly decentralized
The role of validators in this network includes the usual duties of validators of any blockchain such as validating new transactions and ensuring the blockchain's security.
But the Hubblenet is not just a standard blockchain, it has been significantly modified for perps
Our custom block-building and order-matching processes are seamlessly intertwined. As users place orders, Validators index this data locally on their nodes, providing a comprehensive record of open orders, positions, margins, pending funding, and margin ratios
But the responsibilities of Validators extend beyond mere data hosting. During the block sealing process, they're tasked with executing the order matching and performing liquidations when positions slip below the required maintenance margin
This Validator-centric design lays the foundation for a new standard of decentralization, where all pivotal operations occur on-chain, eliminating dependencies on external parties.
An exchange that can truly run itself without centralized entities.
In exchange for performing the tasks of ensuring block integrity, performing order matching and liquidations, Validators will be rewarded with real yield paid in USDC, the gas token of the Hubblenet
Initially, validation of the Hubblenet will be permissioned. We've entrusted this key role to a select group of ecosystem partners to ensure a seamless launch. This approach is necessary as it's challenging to align incentives in the absence of a Hubble token for staking
In the future, after the launch of Hubble token, the chain will become elastic, and therefore the validation process permissionless. Anyone with an Avalanche node and enough Hubble tokens to stake will be able to participate as a validator and reap the rewards.
