Inside Pell Network: How Pell’s Omnichain Design is Advancing Restaking Sector？

Pell Network is transforming the BTCFi landscape with its innovative Omnichain Restaking model. Decentralized Validated Services (DVS) seamless support for Bitcoin, Ethereum, Solana, and other major ecosystems, Pell enables BTC assets to unlock new possibilities in DeFi. Pell enhances asset liquidity, amplifies security, and simplifies cross-chain development. This report explores Pell Chain’s architecture, and the value of Omnichain’s design to stakers, node operators, and developers, positioning it as a key player in realizing Bitcoin’s full potential in the DeFi ecosystem.

EigenLayer currently dominates the restaking sector, amassing over $16.9 billion in total value locked (TVL). However, EigenLayer’s Active Validation Services (AVS) cater exclusively to the Ethereum ecosystem. In contrast, Pell Network introduces Decentralized Validated Services (DVS) that support omnichain functionality. Developers can deploy their applications on Pell Network once and gain access to multi-chain validation services across BTC, Ethereum, Solana, and other major ecosystems. This innovation breaks ecosystem limitations and creates new value for stakers, node operators, and DVS users. With its current $600M TVL, Pell Network is just getting started.

Unlocking Bitcoin’s Potential Through BTCFi

Bitcoin, often referred to as the “digital gold” of blockchain, lacks smart contract functionality, limiting its integration into DeFi. Unlocking BTC’s latent potential has always been the central narrative in the BTCFi space. Solutions like cross-chain bridges and Layer 2s have revealed Bitcoin’s greater capabilities in other ecosystems. For example, Babylon introduced PoS staking mechanisms that enable Bitcoin assets to secure other chains. However, this approach sacrifices staking asset liquidity, reducing user efficiency.

To address this limitation, Pell Network proposes omnichain restaking by integrating Liquid Staking Tokens (LST) with decentralized validated services, further unlocking Bitcoin’s potential.

How Pell Network Enables Restaking

Liquid Staking Tokens (LSTs)

Users can stake BTC assets through LST protocols like Lombard or Lorenzo, which issue BTC LSTs as deposit receipts. These protocols delegate user assets to platforms like Babylon for staking. The resulting BTC LSTs maintain asset liquidity and can be further used for restaking.

Pell Network’s Restaking Model

BTC LST holders can restake their LSTs on Pell Network to participate in DeFi and DApp ecosystems across chains. This model creates additional revenue opportunities while enhancing cross-chain security through restaked assets.

At its core, Pell Network functions as a demand-supply marketplace powered by shared security architecture:

• Stakers contribute BTC LSTs, enabling node operators to provide validation services through completing the delegate process.
• Node operators secure the network by running validation nodes, offering developers affordable, efficient multi-chain security.
• Developers gain access to a cost-effective shared security framework by paying service fees.

Pell Chain: A High-Speed, High-Efficiency Blockchain Architecture

Pell Chain is a PoS blockchain built on the Cosmos SDK and the Tendermint PBFT consensus engine, delivering a block time of approximately 5 seconds and instant finality. Think of Pell Chain as a high-speed highway, capable of processing up to 4,000 transactions per second, where the sequence of vehicles (blocks) is determined as soon as they depart from the starting point, ensuring immutability.

However, while Pell Chain excels in speed, cross-chain transactions often face bottlenecks due to the speed of external chains or the latency of external node responses. To address this, Pell Chain is not merely a “high-speed highway” but a highly efficient bridge connecting different “cities” (blockchains). It balances its own speed with the accuracy and security of cross-chain data.

Validators: Guardians of the Blockchain

Pell Chain’s security and stability rely on its Validators, akin to train dispatchers who decide the “routes” (block paths) based on the weight of their stakes in $PELL tokens. Validators must stay online to participate in block production and are rewarded with block rewards or transaction fees.

Beyond scheduling, validators play a crucial role in maintaining network security. Poor performance, such as service interruptions or malicious behavior, results in slashing of their staked tokens, ensuring accountability.

Observers: Scouts and Auditors of the Cross-Chain Ecosystem

Observers are another essential component of Pell Chain, tasked with monitoring specific transactions or states on external blockchains. They are divided into two roles:

• Sequencers: Scouts responsible for identifying and reporting critical information on external chains. The system requires only one honest sequencer to maintain liveness.
• Verifiers: Auditors who validate the sequencer’s reports and reach consensus on Pell Chain, ensuring data accuracy.

This division of roles minimizes the risk of single points of failure and ensures the reliability of cross-chain information transmission.

Dynamic Hidden Committee (DHC): A Black Box for Cross-Chain Asset Security

A cornerstone innovation of Pell Chain is the Dynamic Hidden Committees (DHC) mechanism, a rotating multi-node system designed to safeguard cross-chain payment channels. DHC functions as a “covert operations team,” where members operate anonymously and rotate periodically to prevent external attacks.

How DHC Works:

• Member Election: Using Ring VRF, a ZKP-based algorithm, members are randomly selected, generating virtual keys and MPC accounts for each committee.
• Security Isolation: TEE nodes (Trusted Execution Environments) are unaware of their identities and those of other members, preventing collusion or external breaches.
• Dynamic Rotation: Nodes are regularly reassigned tasks, maintaining security even under normal operations.

This system acts as an unbreakable “black box,” requiring attackers to control the majority of nodes to disrupt operations. Even then, they can only halt the network temporarily without compromising assets.

Core Design Principles of Pell Chain

Pell Chain seamlessly integrates high performance, robust security, and cross-chain interaction through its distributed architecture:

• Validators: Maintain chain-level consensus and secure state updates.
• Observers: Ensure reliable cross-chain interactions, bridging blockchains.
• DHC: Safeguard cross-chain assets with distributed key management and identity obfuscation.

With these mechanisms, Pell Chain emerges as not only a high-speed mainchain but also a secure, decentralized network bridging multiple blockchains. It establishes a strong foundation for the rise of the BTCFi ecosystem and a more interconnected blockchain future.

Benefits of Omnihain Restaking for Ecosystem Participants

For Stakers — Maximized Liquidity and Rewards

Stakers retain liquidity via LSTs while earning staking rewards and participating in DeFi/DApp ecosystems. Restaking on Pell maximizes asset helps ensure the integrity and reliability of the Pell Chain’s consensus on external chain events.efficiency and creates dual opportunities for security contributions and asset appreciation.

For Node Operators — Expanded Revenue Streams

Supporting diverse ecosystems (e.g., EVM, SVM, MoveVM, Cosmos SDK, TVM) allows node operators to serve a broader user base. Technologies like DHC and MPC ensure secure and flexible validation, attracting developers and boosting operator revenue, which in turn benefits restakers.

For Developers — Affordable Cross-Chain Validation

Pell Network’s “deploy once, validate across chains” approach simplifies cross-chain development and reduces operational costs. Developers can avoid setting up separate validators for each chain, gaining efficient security services through a single integration.

Future Potential and Market Outlook

Pell Network’s cross-chain restaking model holds groundbreaking significance in BTCFi. While EigenLayer focuses on Ethereum, Pell’s multi-chain compatibility targets a far larger market. As BTCFi expands to a trillion-dollar industry, Pell’s mutually beneficial ecosystem for stakers, node operators, and developers positions it for substantial growth.

By enabling decentralized, multiple chains validation, Pell Network not only reinforces Bitcoin’s position in BTCFi but also lays the foundation for a truly trustless, multi-chain future.

About Pell :

Pell: The First & Omnichain BTC Restaking Network, extending BTCFi into the cryptoeconomic security domain and fully unlocking Bitcoin’s potential.

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