What is the Tornado relayer
You need to learn the Tornado Cash relayer before you participate in Relayers Tool staking.
Relayers form an essential & necessary part of the Tornado Cash ecosystem. Their use guarantees privacy as they solve the infamous “fee payment dilemma” : how to pay fees for token withdrawals from a pool while maintaining anonymity?
Therefore, relayers act as third parties and manage the entire withdrawal. They pay for transaction fees by deducting them directly from the transferred amount. They also charge an additional fee for their services.
Since the implementation of the Relayer Registry proposal, the protocol collects a fee directly from the relayer’s staked balance through the StakingReward contract for each withdrawal. This fee percentage may vary from one pool to another and is also subject to change through on-chain governance.
Currently, it is fixed at 0.3%. Some pools remain without fees, either because the instance is too small to assign a fee (0.1 ETH, 100 DAI/USDT, 1000 DAI/USDT), or because there is not enough liquidity on Uni v3 (all cDAI instances).
you need to understand & accept all potential risks of being a relayer for the protocol.
How a Relayer is chosen by user interface
The formula for designating a relayer is as follows:
The list of all registered relayers is retrieved from the Relayer Registry smart contract.
For each relayer, calculate a score based on its staked TORN and its fee. The higher the stake, the higher the score is; the higher the fee, the lower the score is. For Ethereum mainnet, the formula used to calculate the score is stake * [1 - 25*(fee-0.33)^2]; for sidechains, the formula is stake * [1 - 11.89*(fee-0.01)^2].
Then randomly pick a relayer, weighted by its calculated score.
When you check relayers data,only 10 relayers who stake over 10,000 torn can get more reward.
For individuals who want to become relayer with less TORN,they have less chance to be chosen as the relayer,which means that you lock TORN and don't have more reward.
Anyone can become a relayer for the protocol,but you need to run the Tornado Cash Relayer software for Ethereum Mainnet on your computer,it is inconvenient for individuals who don’t have development experience and time to maintain the server.
Therefore,Relayers Tool is very convenient for us.
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