The blockchain project EigenLayer has made waves in the crypto world, with $12 billion worth of user deposits and a highly anticipated innovation called “restaking.” This new technology has the potential to transform the way crypto protocols bootstrap their security.
Restaking allows investors to repurpose their staked ether (ETH) from the main Ethereum chain to secure additional protocols, known as Actively Validated Services (AVSs). These AVSs can range from blockchain bridges to data storage facilities. In return, both EigenLayer investors, or “restakers,” and AVSs benefit. Restakers receive an extra rate of return on top of their existing interest, while AVSs gain access to pooled security.
The core idea behind EigenLayer’s restaking technology is to create a collaborative security model. Instead of individual protocols securing themselves with separate stakes, the aim is to have a shared stake across multiple protocols. This pooled security approach significantly increases the cost for potential attackers, as they would need to accumulate a much larger sum to target a single protocol.
While EigenLayer has garnered immense interest and sizable investments, it is important to note that many of its core features have not yet been activated. The reward system and the mission-critical “slashing” mechanism, which penalizes dishonest operators, are still in development. Additionally, the protocol currently does not pay out rewards to depositors, which is a crucial incentive for restaking.
EigenDA, a data-availability protocol developed by Eigen Labs, was the first AVS to launch on EigenLayer. However, even EigenDA’s security model is relatively conventional compared to EigenLayer’s envisioned system. The protocol is controlled by a distributed set of operators who are not financially penalized for dishonest behavior.
EigenLayer’s founder and chief architect, Sreeram Kannan, acknowledged that the project’s launch would proceed in phases with an unspecified timeline. While some crucial functionalities are yet to be implemented, EigenLayer aims to allow its marketplace to develop and stabilize before introducing in-protocol payments and slashing.
As EigenLayer strives to solidify its position in the decentralized finance space, competitors are emerging, putting pressure on the project to deliver on its promises. The current state of EigenLayer showcases the potential of restaking technology, but its full security system and interest payout mechanisms still exist more in theory than reality. Antworten
The blockchain industry is experiencing significant growth, with new projects and technologies constantly being developed. EigenLayer, a blockchain project, has gained attention for its innovative technology called “restaking.” With $12 billion worth of user deposits, EigenLayer aims to transform the way crypto protocols bootstrap their security.
Restaking allows investors to repurpose their staked ether (ETH) from the main Ethereum chain to secure additional protocols, known as Actively Validated Services (AVSs). These protocols can include blockchain bridges and data storage facilities. Restakers benefit from an extra rate of return on top of their existing interest, while AVSs gain access to pooled security.
EigenLayer’s restaking technology is based on a collaborative security model. Instead of individual protocols securing themselves with separate stakes, the goal is to have a shared stake across multiple protocols. This approach significantly increases the cost for potential attackers, as they would need to accumulate a much larger sum to target a single protocol.
While EigenLayer has generated significant interest and investments, many of its core features are still in development. The reward system and the “slashing” mechanism, which penalizes dishonest operators, have not yet been activated. Additionally, the protocol does not currently pay out rewards to depositors, which is an important incentive for restaking.
EigenDA, a data-availability protocol developed by Eigen Labs, was the first AVS to launch on EigenLayer. However, its security model is relatively conventional compared to EigenLayer’s envisioned system. The protocol is controlled by a distributed set of operators who are not financially penalized for dishonest behavior.
Sreeram Kannan, EigenLayer’s founder and chief architect, has acknowledged that the project’s launch will proceed in phases with an unspecified timeline. While some crucial functionalities are yet to be implemented, EigenLayer aims to allow its marketplace to develop and stabilize before introducing in-protocol payments and slashing.
As EigenLayer strives to solidify its position in the decentralized finance space, competitors are emerging, putting pressure on the project to deliver on its promises. While the current state of EigenLayer demonstrates the potential of restaking technology, its full security system and interest payout mechanisms still remain more in theory than reality.
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CoinDesk
Cointelegraph
The Block Crypto