WAVS Rewards Demo

This project implements a reward distribution system that computes rewards based on NFT holdings, creates a Merkle tree, uploads it to IPFS, and allows users to claim rewards via a frontend interface. There is also a frontend to interact with the demo.

Project Overview

This project demonstrates a complete reward distribution system with the following components:

1. Solidity Smart Contracts:

   • RewardDistributor.sol: Main contract for distributing rewards based on Merkle proofs
   • RewardToken.sol: ERC20 token used for rewards
   • RewardSourceNft.sol: NFT contract that determines reward eligibility

2. AVS Component (Rust):

   • Computes rewards based on NFT ownership
   • Builds a Merkle tree of account→reward mappings
   • Uploads the Merkle tree data to IPFS
   • Returns the Merkle root and IPFS hash to the contract

3. Frontend:

   • Displays pending rewards
   • Allows users to claim rewards by submitting Merkle proofs
   • Shows claim history and total received rewards
   • Breaks down rewards by source
   • Allows to mint NFTs and trigger the AVS service to update the merkle root in the reward distributor contract

System Requirements

Core (Docker, Compose, Make, JQ, Node v21+, Foundry)

Ubuntu Base

• Linux: sudo apt update && sudo apt install build-essential

Docker

If prompted, remove containerd with sudo apt remove containerd.io.

• MacOS: brew install --cask docker
• Linux: sudo apt -y install docker.io
• Windows WSL: docker desktop wsl & sudo chmod 666 /var/run/docker.sock
• Docker Documentation

Docker Compose

• MacOS: Already installed with Docker installer

  sudo apt remove docker-compose-plugin may be required if you get a dpkg error

• Linux + Windows WSL: sudo apt-get install docker-compose-v2
• Compose Documentation

Make

• MacOS: brew install make
• Linux + Windows WSL: sudo apt -y install make
• Make Documentation

JQ

• MacOS: brew install jq
• Linux + Windows WSL: sudo apt -y install jq
• JQ Documentation

Node.js

• Required Version: v21+
• Installation via NVM

curl -o- https://raw.githubusercontent.com/nvm-sh/nvm/v0.40.3/install.sh | bash
nvm install --lts

Foundry

curl -L https://foundry.paradigm.xyz | bash && $HOME/.foundry/bin/foundryup

Rust v1.85+

Rust Installation

curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh

rustup toolchain install stable
rustup target add wasm32-wasip2

Upgrade Rust

# Remove old targets if present
rustup target remove wasm32-wasi || true
rustup target remove wasm32-wasip1 || true

# Update and add required target
rustup update stable
rustup target add wasm32-wasip2

Cargo Components

Install Cargo Components

On Ubuntu LTS, if you later encounter errors like:

wkg: /lib/x86_64-linux-gnu/libm.so.6: version `GLIBC_2.38' not found (required by wkg)
wkg: /lib/x86_64-linux-gnu/libc.so.6: version `GLIBC_2.39' not found (required by wkg)

If GLIB is out of date. Consider updating your system using:

sudo do-release-upgrade

# Install required cargo components
# https://github.com/bytecodealliance/cargo-component#installation
cargo install cargo-binstall
cargo binstall cargo-component wasm-tools warg-cli wkg --locked --no-confirm --force

# Configure default registry
# Found at: $HOME/.config/wasm-pkg/config.toml
wkg config --default-registry wa.dev

# Allow publishing to a registry
warg key new

Solidity

Install the required packages to build the Solidity contracts. This project supports both submodules and npm packages.

# Install packages (npm & submodules)
make setup

# Build the contracts
forge build

# Run the solidity tests
forge test

Build WASI components

Now build the WASI components into the compiled output directory.

Warning

If you get: error: no registry configured for namespace "wavs"

run, wkg config --default-registry wa.dev

Warning

If you get: failed to find the 'wasm32-wasip1' target and 'rustup' is not available

brew uninstall rust & install it from https://rustup.rs

# Remove `WASI_BUILD_DIR` to build all components.
make wasi-build

WAVS

Note

If you are running on a Mac with an ARM chip, you will need to do the following:

• Set up Rosetta: softwareupdate --install-rosetta
• Enable Rosetta (Docker Desktop: Settings -> General -> enable "Use Rosetta for x86_64/amd64 emulation on Apple Silicon")

Configure one of the following networking:

• Docker Desktop: Settings -> Resources -> Network -> 'Enable Host Networking'
• brew install chipmk/tap/docker-mac-net-connect && sudo brew services start chipmk/tap/docker-mac-net-connect

Start Environment

Start an ethereum node (anvil), the WAVS service, and deploy eigenlayer contracts to the local network.

Enable Telemetry (optional)

Set Log Level:

• Open the .env file.
• Set the log_level variable for wavs to debug to ensure detailed logs are captured.

Note

To see details on how to access both traces and metrics, please check out Telemetry Documentation.

Start the backend

# This must remain running in your terminal. Use another terminal to run other commands.
# You can stop the services with `ctrl+c`. Some MacOS terminals require pressing it twice.
cp .env.example .env

# update the .env for either LOCAL or TESTNET

# Starts anvil + IPFS, WARG, Jaeger, and prometheus.
make start-all-local

Create Deployer, upload Eigenlayer

These sections can be run on the same machine, or separate for testnet environments. Run the following steps on the deployer/aggregator machine.

# local: create deployer & auto fund. testnet: create & iterate check balance
bash ./script/create-deployer.sh

## Deploy Eigenlayer from Deployer
COMMAND=deploy make wavs-middleware

Deploy Service Contracts

Key Concepts:

• Trigger Contract: Any contract that emits events, then WAVS monitors. When a relevant event occurs, WAVS triggers the execution of your WebAssembly component.
• Submission Contract: This contract is used by the AVS service operator to submit the results generated by the WAVS component on-chain.

WAVS_SERVICE_MANAGER_ADDRESS is the address of the Eigenlayer service manager contract. It was deployed in the previous step. Then you deploy the trigger and submission contracts which depends on the service manager. The service manager will verify that a submission is valid (from an authorized operator) before saving it to the blockchain. The trigger contract is any arbitrary contract that emits some event that WAVS will watch for. Yes, this can be on another chain (e.g. an L2) and then the submission contract on the L1 (Ethereum for now because that is where Eigenlayer is deployed).

# Forge deploy contracts
make deploy-contracts

Deploy Service

Deploy the compiled component with the contract information from the previous steps. Review the makefile for more details and configuration options.TRIGGER_EVENT is the event that the trigger contract emits and WAVS watches for. By altering SERVICE_TRIGGER_ADDR you can watch events for contracts others have deployed.

# ** Testnet Setup: https://wa.dev/account/credentials

export COMPONENT_FILENAME=rewards.wasm
export PKG_NAME="rewards"
export PKG_VERSION="0.4.0-rc.1"
source script/upload-to-wasi-registry.sh || true

# Testnet: set values (default: local if not set)
# export TRIGGER_CHAIN=holesky
# export SUBMIT_CHAIN=holesky

# Package not found with wa.dev? -- make sure it is public
export AGGREGATOR_URL=http://127.0.0.1:8001
REGISTRY=${REGISTRY} bash ./script/build_service.sh

Upload to IPFS

# local
export DEPLOYER_PK=$(cat .nodes/deployer)
export WAVS_SERVICE_MANAGER_ADDRESS=$(jq -r .addresses.WavsServiceManager ./.nodes/avs_deploy.json)

# Upload service.json to IPFS
SERVICE_FILE=.docker/service.json source ./script/ipfs-upload.sh

Start Aggregator

TESTNET You can move the aggregator it to its own machine for testnet deployments, it's easiest to run this on the deployer machine first. If moved, ensure you set the env variables correctly (copy pasted from the previous steps on the other machine).

bash ./script/create-aggregator.sh 1

IPFS_GATEWAY=${IPFS_GATEWAY} bash ./infra/aggregator-1/start.sh

wget -q --header="Content-Type: application/json" --post-data="{\"uri\": \"${IPFS_URI}\"}" ${AGGREGATOR_URL}/register-service -O -

Start WAVS

TESTNET The WAVS service should be run in its own machine (creation, start, and opt-in). If moved, make sure you set the env variables correctly (copy pasted from the previous steps on the other machine).

bash ./script/create-operator.sh 1

Set the following environment variables in the ./infra/wavs-1/.env file:

• WAVS_ENV_PINATA_API_KEY
• IPFS_GATEWAY_URL

These come from https://pinata.cloud and are used to upload NFT metadata to IPFS.

IPFS_GATEWAY=${IPFS_GATEWAY} bash ./infra/wavs-1/start.sh

# Deploy the service JSON to WAVS so it now watches and submits.
# 'opt in' for WAVS to watch (this is before we register to Eigenlayer)
WAVS_ENDPOINT=http://127.0.0.1:8000 SERVICE_URL=${IPFS_URI} IPFS_GATEWAY=${IPFS_GATEWAY} make deploy-service

Register service specific operator

Making test mnemonic: cast wallet new-mnemonic --json | jq -r .mnemonic

Each service gets their own key path (hd_path). The first service starts at 1 and increments from there. Get the service ID

source ./script/avs-signing-key.sh

# TESTNET: set WAVS_SERVICE_MANAGER_ADDRESS
COMMAND="register ${OPERATOR_PRIVATE_KEY} ${AVS_SIGNING_ADDRESS} 0.001ether" make wavs-middleware

# Verify registration
COMMAND="list_operator" PAST_BLOCKS=500 make wavs-middleware

Trigger the Service

Run the AVS service to query the NFTs minted during the deploy step, upload the merkle tree to IPFS, and update the merkle root in the reward distributor contract.

make update-rewards

Claim rewards

Claim rewards by querying the merkle tree data from IPFS and submitting the Merkle proof.

make claim-rewards

Notice how the local wallet's balance has increased by the amount of rewards claimed.

Frontend

A frontend application is included for interacting with the reward distribution system.

Features

• Connect your Ethereum wallet
• View pending rewards based on NFT holdings
• Claim rewards by submitting your Merkle proof
• View claim history and total rewards received
• See a breakdown of reward sources
• Use admin panel to mint NFTs and trigger the AVS service to update the merkle root in the reward distributor contract

Running the Frontend

The frontend must be started after the backend is running and the contracts are deployed, since the contracts need to be available to the frontend via environment variables.

# Then install frontend dependencies
cd frontend
npm install

# And start the server
npm run dev

# Frontend will be available at http://localhost:3000

To test the reward system, follow these steps:

1. In the admin panel:

   • Tap the faucet to get local tokens to pay for gas
   • Mint NFTs to your wallet
   • Trigger AVS to run to recompute the merkle root, upload it to IPFS, and update the contract.

2. Go to the home page:

   • See pending rewards based on your NFT holdings
   • Hit claim and see it in the history
   • See a breakdown of reward sources
   • Debug raw merkle tree data

Claude Code

To spin up a sandboxed instance of Claude Code in a Docker container that only has access to this project's files, run the following command:

npm run claude-code
# or with no restrictions (--dangerously-skip-permissions)
npm run claude-code:unrestricted