2 - 4 minute read
Ethereum node operators and validators have a new protocol to get excited about. EigenLayer, which allows Ethereum validators and stakers to “re-stake” their assets onto emerging networks such as side-chains and non-EVM blockchains, has just launched on testnet.
EigenLayer is aiming to become a decentralized marketplace enabling Ethereum node operators and validators to earn fees on additional services. EigenLayer founder Sreeram Kannan said that by facilitating the moving and re-staking of ETH onto other networks, smaller networks will be given the chance to grow securely, addressing issues with validator economic incentives.
The protocol allows validators and stakers to restake assets received in exchange for staking Ether on platforms such as Lido (stETH) and RocketPool (rETH). According to the whitepaper, EigenLayer also has plans to enable restaking for ETH withdrawn from the beacon chain following the Shapella upgrade.
EigenLayer protocol mainnet launch is planned for Q3, with testing being phased in three stages to onboard various participants into the ecosystem. The first phase is using Ethereum’s Goerli testing network.
EigenLayer protocol backers include crypto venture firm Blockchain Capital, along with Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner. The project raised $50 million in a Series A funding led by Blockchain Capital in March.
Ethereum co-founder Joseph Lubin praised EigenLayer in a tweet, saying “the Eigen Labs team is at the forefront of some of the most exciting work happening in Ethereum,” and added that it’s a “new paradigm for fostering protocol-centric innovation.”
According to Ultrasound.Money tracker, there are currently 17.9 million ETH staked on the Beacon Chain, worth around $33.6 billion, more than the entire market capitalization of USDC, and representing almost 15% of the entire Ethereum supply.
The protocol aims to incentivize validators and stakers with additional yields, and while it is still in its testing phase, this is good news for Ethereum traders and investors, who can see that there is a growing trend towards decentralization and enabling additional growth on other networks.
