EigenLayer, a security abstraction and application layer, offers Ethereum validators the ability to earn additional revenue by lending out staked capital for various uses. By utilizing staked capital that's already serving as security collateral, modules established on EigenLayer can leverage the existing Ethereum validator pool and introduce additional slashing conditions. This process, known as "restaking," has the potential to reduce the financial strain associated with security for users of decentralized applications, lowering the bar for innovation and reshaping the landscape of protocol financing.
Monday, March 18, 2024The EigenLayer team created a new model for analyzing the cryptoeconomic safety of PoS chains by comparing the cost of corrupting a blockchain with the profit that can be extracted from corrupting it. StakeSure is an on-chain insurance mechanism that guarantees no honest user can lose funds. Its many complex characteristics include provably safe bridging, automatically adjusting economic security, and a Karma system for loss compensation and hacker penalization.
EigenLayer introduces innovative blockchain solutions, including the EIGEN token, which tackles intersubjectively attributable faults, allowing for expanded security measures beyond traditional cryptographic proofs. By utilizing restaking mechanisms, EigenLayer enables staked ETH to support additional services while safeguarding network integrity with a unique token forking system, effectively separating staking and non-staking activities to mitigate risk and enhance application development.
EigenLayer faced a crucial decision early on in which it had to decide whether to integrate native restaking fully or accept a proposal that focused only on Liquid Staking Tokens (LSTs), which would simplify development but limit staking options.
EigenLayer's Actively Validated Services will soon gain the ability to reward stakers and operators for securing their protocols. 4% of the EIGEN supply will go towards further rewarding stakers as a rewards boost. Details on EigenLayer's Season 2 stakedrop will be announced by the Eigen Foundation soon.