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Private, automated validator withdrawals

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I'm not a Solidity developer, so I would like to ask smarter people here if my idea is possible.

The problem I'm trying to solve

I deployed a validator in a way it's difficult to trace the funds back to me. I would like to keep that financial privacy and:

  1. Have a way to withdraw the earnings privately, without revealing my connection to the validator.
  2. Have it automated to occur for example periodically, every 1-2 months or every $x earned or even randomly for increased privacy.
  3. Not use trusted third parties such as CEX in the process, because of privacy and potential censorship reasons.

My idea

My idea is to create a system consisting of smart contracts running on L1 and L2 and scripts running some of them periodically.

  1. There will be 1 instance of contract A, which node operators set as withdrawal address of their validators. The contract will track the balance of every validator.
  2. The contract will periodically move the funds received from validators to a private place. I'm thinking about using upcoming Aztec L2 for that.
  3. The funds will be periodically distributed to L2 accounts specified by each node operator.

This is a basic idea regarding consensus rewards withdrawals.

Execution rewards

Execution rewards is more tricky, because it may be hard to know which validator earned the reward. It may require to:

  1. Deploy individual L1 contract instances (let's call it contract B) for each node operator.
  2. Node operators would set MEV withdrawal address to this contract. This way everything coming to given contract can be traced back to the particular validator.
  3. There should be a periodic, automated mechanism to withdraw funds from those individual contracts to the main contract. The main contract will keep the balance, as described above.

The result

I would have L2 account receving funds periodically without leaving a trace to my validator.

Do you think it is possible? If there are existing solutions I would be more than happy to check them out.

And thank you for reading this post :)

submitted by /u/repawel
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