AMA Recap with MindChats, MindV Epoch 2: StakeStone and Pencils

This special episode of MindChats, part of the MindV series, explores the exciting world of restaking and Fully Homomorphic Encryption (FHE), bringing together key DeFi projects to discuss the latest innovations.

Hosted by Maximalist, the conversation featured Christian from Mind Network, Ivan from Stakestone, and Emeka from Pencil Protocol.

Recording MindV Epoch 2: https://x.com/i/spaces/1YpJklAjELZxj

Time Stamps

Introduction and Background (08:26)
Mind V and Delegated Governance (17:09)
Stakestone’s Collaboration with Mind Network (19:09)
Pencil Protocol and Enhanced User Capabilities (21:12)
Fully Homomorphic Encryption (FHE) and Its Security Role (24:39)
Stakestone’s Omnichain Liquidity Approach (27:48)
Introducing Vaults by Pencil Protocol (30:01)
The Future of Restaking and the Utility of TVL (33:53)
Community Q&A and Upcoming TGE (48:18)
Closing Remarks and Future Developments (50:09)

Key Highlights

Restaking and the Power of Delegated Governance

“MindV allows us to differentiate between the asset’s financial value and its governance power, which brings dynamic interaction into decentralized finance.” — Christian, Mind Network.

Christian explained how Mind V separates the financial value of an asset from its governance power, much like how major asset managers control voting rights for public companies. In crypto, this means allowing users to retain their assets while delegating governance to others, providing a new layer of flexibility and interaction in blockchain network.

Collaboration with Stakestone and Pencil Protocol

Ivan, from Stakestone, highlighted their long-standing collaboration with Mind Network. By leveraging FHE, they aim to protect sensitive staking data and interactions, making users more confident about the privacy and security of their information. He also elaborated on the role of Stakestone as an omnichain liquidity protocol, enhancing capital efficiency across different networks.

Emeka, representing Pencil Protocol, spoke about the increased capacity and functionality their collaboration with Mind V brings. By integrating FHE, they’re making complex governance and staking activities more accessible to both novice and experienced users, which helps drive user participation across blockchain networks.

Fully Homomorphic Encryption (FHE) and Enhanced Security

“Fully Homomorphic Encryption helps secure data while maintaining value, allowing more decentralized AI interactions.” — Emeka, Pencils Protocol.

Christian elaborated on the critical role of FHE in maintaining validator integrity without revealing results. Current consensus mechanisms often expose outputs publicly, which can lead to exploitation by malicious actors. With FHE, Mind V allows encrypted validation, keeping validator outputs confidential. This enhances security and helps scale decentralized networks without sacrificing trust.

Stakestone’s Omnichain Approach

Ivan stressed the importance of Stakestone’s omnichain infrastructure. He explained how it enables seamless liquidity movement across blockchains and how this interconnectedness supports a broader range of users — from institutions to retail. This adaptability ensures liquidity flows smoothly between different protocols, enhancing opportunities for staking beyond just one network.

Introducing Vaults by Pencil Protocol

Pencils introduced their new product, “Pencils Vaults,” which allows users to amplify their farming returns through leverage, depending on their risk tolerance. Vaults utilize automated AI strategies, removing the complexity of manual trading. This solution is all about optimizing yields and empowering users to earn more from their liquidity, with minimal manual involvement.

The Future of Restaking and TVL Utility

Christian shared his thoughts on the next phase of restaking. He emphasized that while TVL (Total Value Locked) is a significant metric today, the goal is to focus on usable TVL — TVL that contributes directly to protocol utility. He explained how a more efficient restaking environment could achieve zero TVL if resources are perfectly utilized. Ivan supported this by emphasizing Stakestone’s approach to ensuring that their TVL is actively contributing to yield maximization and user benefit.

Upcoming Developments

• Stakestone’s SBTC Launch: The SBTC, a BTC index product, is set to go live next week.
• Mind Network Delegation Voting: Buttons for delegation voting will become actionable on the Mind Network dApp in the coming weeks.

Stay tuned for more updates on these exciting innovations shaping the future of Defi and governance!

About Mind Network

Mind Network is the first Fully Homomorphic Encryption (FHE) layer for AI and Proof-of-Stake (POS) Networks. The layer accepts restaking tokens from ETH, BTC, and AI bluechips and operates as an FHE validation network, bringing consensus, data, and cryptoeconomic security to Decentralized AI, DePIN, EigenLayer, Symbiotic, and Babylon AVS, and many critical POS networks.

Mind Network is backed by Binance Labs, Hashkey, Big Brain, Chainlink, and received an Ethereum Foundation Grant for their FHE research on Ethereum.

For more insights and updates on Mind Network’s innovations, visit their website and socials:

Website | Twitter | Medium | YouTube | Github | Gitbook | Discord | Telegram