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Components

The components of Plenny play an essential role and include the following parts:

  • Plenny Dapp: A decentralized application consisting of smart contracts that coordinate transactions between the LN and the Ethereum blockchain.
  • Plenny-DON: Decentralized Oracle Network of oracle validators running on Lightning Nodes and using Proof-of-Stake (PoS) to reach network consensus on payment channel activity. Participating Lightning Nodes form the DON of the Plenny-Dapp.
  • Plenny Token (PL2): An ERC-20 token serving as a hybrid token, and is deployed on two blockchains, namely the Ethereum Mainnet and Arbitrum One (Ethereum L2). The token is for licensing channel capacity, rewarding participants, making payments, locking and staking liquidity, and for governing Plenny.
  • Capacity Market: A non-custodial Peer-to-Peer capacity market for payment channels to license liquidity (i.e. inbound capacity) from participating Lightning Nodes.
  • Plenny DLSP Module: Multifunctional open-source software for providing the decentralized lightning services of the Dapp and to operate the DON. The Lightning Nodes using the DLSP module compute transaction data offchain (i.e. locally). This add-on module is a microservice for Lightning Nodes to connect with Ethereum and operate as Liquidity Makers and Lightning Oracle Validators.
  • Royalties and Channel Rewards: Incentive schemes that support Royalties and Channel Rewards for payment channels. Technically, these functionalities are based on Non-Custodial Channel Rewards (NCCR). The NCCR-mechanism is integrated into the smart contracts interacting with the DLSP module. In this process, channel capacity in sat is logged and linked to PL2, which is a unique procedure to leverage bitcoin and allows Lightning Nodes to participate the Ethereum ecosystem.
  • Treasury HODL (TH): A smart contract with token inventory locked to manage rewards for Lightning Nodes, capacity market participants, and oracle validators.
  • Reward HODL (RH): A smart contract with token inventory locked that manages rewards for liquidity staking and governance.
  • RePLENishment Trigger: Technical function for periodically triggering the allocation of funds. This component distributes the fees collected by Plenny back to the Treasury HODL and performs burning and buyback over the DEX.
  • Locking: Features to lock PL2 balances in smart contracts. For instance, down payments when requesting inbound capacity in the capacity market and the Proof of Stake (PoS) for the validator threshold.
  • Fish Farming: Functions for liquidity staking in smart contracts that generate rewards. For example, LP tokens from the liquidity mining program supported by a particular DEX are used for fish farming on the Dapp.
  • Oracle Election Trigger: Community-driven trigger enabling users to periodically elect new validators.
  • Plenny Audit Bot: A monitoring and analytics feature that provides insights into fund allocation and cash management operations.
  • Plenny Explorer: A block explorer and transaction search feature that tracks the activity on Plenny.
  • DAO Governance: This module supports staking PL2 for governance voting and ensures decentralized management by allowing community members to vote on and change parameters.
  • Delegation: Feature to delegate voting rights for decentralized governance based on Delegated Proof of Stake (DPoS).