Restaking Protocol EigenLayer Launches on the Ethereum Mainnet

Ethereum-based restaking protocol EigenLayer has been recently in the news with its total value locked crossing a staggering $12.4 billion while dominating Ethereum’s DeFi sector. In the latest developments on Tuesday, April 9, the EigenLayer announced its launch on the Ethereum mainnet.

EigenLayer Makes Way to Ethereum Mainnet

As per the latest announcement, EigenLayer and EigenDA, Ethereum’s restaking protocols, have been officially deployed on the Ethereum mainnet. EigenDA, as the inaugural AVS (Autonomous Vault System) to launch, enters into competition with platforms like Celestia in the provision of data storage services.

The latest features comprise:

• Restakers now have the option to delegate their full stake to a chosen Operator.
• Operators can officially join EigenLayer and choose to operate AVSs.
• AVSs can register with the protocol, beginning with EigenDA (currently undergoing beta testing).

Previously, restaking in EigenLayer involved depositing LSTs or configuring validator withdrawal credentials to an EigenPod. With the recent launch of operators and an AVS (EigenDA), active restaking now entails delegating to one of the top 200 operators operating AVSs.

More Details for the Restakers

In its blog post, EigenLayer reported that to restake to an AVS like EigenDA, individuals must delegate their entire stake to an operator who has chosen to participate in that specific AVS. If an operator decides to opt into multiple AVSs, the stake delegated to them covers all of the AVSs they are involved with. While delegation is non-custodial, meaning operators do not hold the stake, the EigenLayer protocol does not assure the suitability of any operator to effectively run AVS software.

In the immediate term, EigenLayer does not pose the risk of slashing while operators establish themselves within the ecosystem and fortify their procedures. However, operators will eventually be susceptible to slashing penalties if they fail to properly operate AVSs.

If individuals restake in EigenLayer via an LRT (Liquidity Transformation Request), the LRT DAO (Decentralized Autonomous Organization) will handle the delegation management. Each LRT operates independently and is at varying stages of readiness to oversee restaker delegations. Note that these LRTs have no affiliation with Eigen Labs. Thus, individuals should contact each LRT directly to inquire about their plans regarding restaker delegations.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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