Restaking protocol EigenLayer partially launches on Ethereum mainnet

The decentralized staking platform EigenLayer on Ethereum, boasting over 13 billion dollars worth of assets, has officially gone live on the mainnet. However, certain notable features are yet to be released and are expected to be made available later in the year.

In a blog post on April 9, EigenLayer revealed that they have introduced in-protocol payments for operators of actively validated services (AVSs), which include apps and cross-chain bridges. However, it is important to note that these payments have not been activated yet.

The feature known as “slashing,” which involves taking away a validator’s deposited cryptocurrency if they fail to perform their duties properly, is still being implemented.

The protocol stated that “Both offerings will be released ‘this year,’ following ample time for the EigenLayer marketplace to mature and become established without providing an explicit schedule.”

Starting from today, Ethereum stakers have the option to assign their staked ETH amount to Eigenlayer managers, enabling these managers to run AVSs on their behalf.

“Has the reward restake process not been resumed yet?,” questioned Christine Kim, Galaxy Digital’s vice president of research, in a recent X post.

Restaking protocol EigenLayer partially launches on Ethereum mainnet

With restaking platforms like EigenLayer, users can earn bonuses by reinvesting their currently staked Ethereum (ETH) tokens – which function as identical tokens linked to the ETH being staked through protocols such as Lido or Rocket Pool.

Last week, analysts at Coinbase warned that while staking could boost income, it could also introduce complications. This is because the same funds might be transferred to various protocols, leading to intricate security and financial challenges.

At the same time as the mainnet debut of EigenLayer, they introduced EigenDA, an initial Data Availability Service (DAS) on the protocol. This marks the first DAS designed to assist various blockchain applications in storing transactional data.

Other AVSs, however, will have to register with EigenLayer and cannot fully deploy right now.

In a different post on X, Kim from Galaxy expressed her confusion over the excitement surrounding the EigenDA news, stating that “the success of staking relies mostly on economic factors – managing risks and rewards effectively.”

“She stated that no risks or rewards, which is equivalent to saying no slashing or AVS payments, are currently active on EigenLayer. Consequently, there isn’t much restaking occurring at the moment based on her perspective.”

EigenLayer has a total value locked of $13.33 billion, according to DefiLlama.

Restaking protocol EigenLayer partially launches on Ethereum mainnet

In the beginning of March, its size surpassed that of Aave, making it the second largest decentralized finance protocol with a value of $33 billion locked into it, following Lido.

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2024-04-10 09:02