EigenLayer, the highly anticipated Ethereum re-staking protocol, has made its first debut on the blockchain’s mainnet. The launch marks a significant milestone for the project, which has already amassed more than $13 billion in assets, even though it is not fully operational.
TLDR
- EigenLayer, an Ethereum restaking protocol with over $13 billion in assets, has been partially launched on the Ethereum mainnet.
- Some key features, such as Active Validated Services (AVS) to carrier in-protocol payments and Slash, are expected to be introduced in the second half of 2024 after the EigenLayer market stabilizes.
- AigenDA, a data availability service and the first AVS to launch on EigenLayer, aims to enable other blockchain apps to store transaction data.
- Other AVS can be registered on EigenLayer, but it is not yet fully deployed and restaking rewards are not publicly available at this time.
- The rise of Eigenlayer attracted significant investment from venture capital firms like Andreessen Horowitz (a16z) and led to the emergence of liquid restaking protocols like Ether.fi and Puffer.
However, the partial launch has some in the cryptocurrency community questioning the scope of EigenLayer's current capabilities and the timeline for introducing key features.
EigenLayer's main goal is to allow users to earn additional rewards by re-staking already staked Ether (ETH) tokens. This innovative approach has the potential to revolutionize the staking environment as it allows users to maximize profits while contributing to the security of the Ethereum network and other blockchain applications.
One of the most notable aspects of EigenLayer's launch is the introduction of EigenDA, a data availability service that serves as the first actively verified service (AVS) on the protocol. EigenDA aims to provide other blockchain applications with a solution for storing transaction data securely and efficiently. The service provides a reliable decentralized storage option that could prove invaluable to developers looking to build on the Ethereum network.
Despite the excitement around the mainnet launch, EigenLayer revealed that some key features are still in development and are not expected to be available until late 2024. These features include in-protocol payments from AVS to operators and a mechanism called slash that penalizes validators. Inability to perform duties properly. The decision to delay the implementation of these features is intended to allow enough time for the EigenLayer marketplace to develop and stabilize before additional complexity is introduced.
The absence of these important features has led some industry experts to question the scope of EigenLayer's current capabilities. Kristin Kim, vice president of research at Galaxy Digital, emphasized in a recent post on social media platform X (formerly known as Twitter) that restaking of rewards is not occurring. Kim's comments highlight the importance of these features in realizing the full potential of the EigenLayer protocol.
Does that mean there is no retake reward yet? https://t.co/zryQxpv5JF
— Christine Kim (@christine_dkim) April 10, 2024
Other AVSs can be registered with EigenLayer, but cannot be fully deployed into the protocol at this time. This limitation may temporarily limit platform growth and adoption as developers and users look forward to introducing a more comprehensive feature set.
Despite these challenges, EigenLayer's rise has not gone unnoticed by the venture capital community. The protocol has attracted significant investment from prominent companies such as Andreessen Horowitz (a16z), which contributed to his $150 million raised by Aigen Labs, the developer of EigenLayer. This influx of capital demonstrates a high level of confidence in the project's potential and ability to reshape the staking and security landscape in the cryptocurrency industry.
The advent of EigenLayer also gave birth to a new category of protocols known as liquid restaking. Projects such as Ether.fi and Puffer are capitalizing on the growing interest in EigenLayer by offering users the ability to deposit funds and receive liquid tokens in return.
These protocols have introduced unique point systems to encourage user participation, further facilitating billions of dollars worth of deposits to EigenLayer.
