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:
- Have a way to withdraw the earnings privately, without revealing my connection to the validator.
- Have it automated to occur for example periodically, every 1-2 months or every $x earned or even randomly for increased privacy.
- 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.
- 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.
- The contract will periodically move the funds received from validators to a private place. I'm thinking about using upcoming Aztec L2 for that.
- 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:
- Deploy individual L1 contract instances (let's call it contract B) for each node operator.
- 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.
- 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 :)
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