Q&A with Crosnest: Validator and Relayer for dYdX

Introduction

Crosnest is a key validator and IBC relayer on the dYdX Chain. Besides validating blocks, they actively handle IBC relaying, making sure token transfers and communication between dYdX, Osmosis, and Noble work without friction. With solid infrastructure and a clear understanding of how interchain systems connect, Crosnest helps keep staking, transfers, and daily network operations on track.

In this Q&A, we spoke with the Crosnest team about their setup, the challenges they deal with, and how they think about running decentralized infrastructure.

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Q: Can you give us a quick rundown of what Crosnest does and why it’s important for dYdX?

Sure. At Crosnest, we run an active validator on the dYdX Chain. This helps keep the network secure and reliable. We also make staking on dYdX straightforward, without unnecessary complications. Next to that, we handle IBC relaying between the dYdX Chain, Osmosis, and Noble. Simply put: we enable smooth and safe transfers of assets and data between different blockchains. This supports day-to-day operations and helps maintain liquidity, both on dYdX and in the wider ecosystem.

Q: IBC relaying sounds complex, what’s a simple way to explain it to someone new to crypto?

IBC (Inter-Blockchain Communication) is basically the messaging system between blockchains. You can think of each blockchain as its own island, and IBC is the system that connects them, allowing messages and assets to move back and forth.

Relayers, like us, make that communication actually happen. For example, if you want to transfer tokens like ATOM or OSMO from one chain to another, we’re in the background making sure it gets there safely and everything keeps running smoothly. We also cover the necessary transaction fees and help keep things moving, so users don’t have to worry about delays or failures. Without relayers, IBC traffic just wouldn’t work.

Q: What’s the biggest challenge in maintaining a reliable IBC relayer for dYdX?

As a key part of IBC infrastructure, the relayer needs to stay online almost all the time. That means having stable systems in place, along with clear monitoring and alerting to catch issues early—before they affect users.

The dYdX chain connects to other independent blockchains through IBC. These chains can have their own issues: network hiccups, upgrades, or unexpected downtime. The relayer needs to handle those cases without trouble—keeping things running, not dropping data, and making sure packets arrive as they should.

Q: Can you share a technical challenge you have worked through as a relayer or validator on dYdX — and what did you learn from it?

In September 2024, after an upgrade on Noble, our relayer stopped picking up events from the Noble node. This led to a growing packet backlog, even though multiple relayers were active on the channel. We had to go through the logs to figure out what was going on.

We found a blind spot in our monitoring, which we’ve since fixed. Staying reliable is ongoing work—there’s always something unexpected that needs a fast and clear response.

Q: From a validator’s perspective, what’s one thing about dYdX’s infrastructure that you think is not mentioned that much?

Validators need efficient ways to gossip (broadcast important updates to other network nodes) and receive order book updates to participate effectively in the matching process. If the network slows down or splits, validators risk acting on outdated data or failing to submit orders in time, leading to missed fees or inconsistencies.

Keeping an off-chain order book up to date takes real resources—CPU, memory, and bandwidth. The cost and effort involved in keeping this running well are often overlooked, but they play a big role in running a solid dYdX validator.

Q: What’s something unique about Crosnest’s approach compared to other relayers?

We were one of the first community relayers, active just a week after Osmosis launched, running alongside Informal Systems. Because we’ve been part of the ecosystem from early on, we’ve developed a deep understanding of how the system works, and we’re able to provide support or advice when needed.

As a validator, we also do something quite rare: we use weighted voting based on how our delegators vote. Instead of always taking a fixed position, we reflect the preferences of our stakers. It’s a simple way to stay accountable, and one that makes sense to us.

Q: Do you have any automation or monitoring tools that make your life easier? Any favorites?

Quite a few! We use monitoring based on Prometheus-reported metrics and cron jobs to check wallet balances and make sure that high-value channels never expire. We’ve also built an indexer for on-chain IBC relayer activity and are working on using that indexed data in more ways.

Right now, we’re active on over 50 chains, without automation and proper monitoring, that would be almost impossible to manage.

If you ask about my (David’s) personal favorites:
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Automation: Ansible – a tool that lets you run a set of tasks in a reproducible way.
Monitoring: Grafana – a tool for visualizing useful information, either instantly or over time in clear graphs.

Q: For someone interested in running a relayer or validator, what’s the #1 piece of advice you’d give them?

Setting up a node is the easy part, but keeping things running smoothly is where it gets serious. Being active on over 50 chains means constantly staying on top of software updates, managing monitoring and alerting, and automating as much as possible to avoid operational bottlenecks.

When something critical happens, like a security vulnerability in the core SDK, all networks might need to upgrade at the same time. That’s when you find out whether your setup is really ready for the pressure. So if you’re serious about this, make sure you have the right tools and processes in place from day one.

Conclusion

Thank you to the Crosnest team for sharing your insights! Be sure to follow them on Twitter, visit their website at Crosnest, and explore their validator and relayer services across the Cosmos ecosystem.

Stay tuned for our next spotlight in the series!

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