Home » Latest News » EigenLayer Restaking Protocol Goes Live on Ethereum Mainnet

EigenLayer Restaking Protocol Goes Live on Ethereum Mainnet

EigenLayer, a restaking protocol, has recently launched on the Ethereum mainnet. This marks a notable milestone in the decentralized finance (DeFi). The protocol boasts assets worth over $13 billion. Despite its operational status, certain critical features are still pending. These features are anticipated to be released “later this year.”

EigenLayer Restaking Protocol on Ethereum Mainnet
Source: Coinbackyard

Key Takeaways

  • EigenLayer Debut
  • $13 Billion Asset Pool
  • Partial Functionality
  • Marketplace Development
  • Delegated Restaking
  • Questions on Rewards
  • Risk Warnings
  • Introduction of EigenDA
  • Total Value Locked
  • Readiness Concerns

In an announcement posted on April 9, EigenLayer revealed its launch on the Ethereum mainnet. However, certain functionalities, including in-protocol payments to operators and the implementation of slashing mechanisms, are yet to be activated.

The protocol emphasized the necessity for the EigenLayer marketplace to develop and stabilize. This is before introducing these features. However, it did not specify an exact timeline for their release.

As of now, users can delegate their restacked Ethereum (ETH) balance. They do this to EigenLayer operators. These operators are responsible for managing actively validated services (AVSs). These services include applications and cross-chain bridges.

Despite the excitement surrounding EigenLayer’s launch, questions remain about the absence of restacking rewards. Christine Kim, Vice President of Research at Galaxy Digital, expressed skepticism about the protocol’s efficacy in its current state. She highlighted the importance of balancing risk and reward in restacking protocols.

Meanwhile, Coinbase analysts cautioned about the potential risks linked with restacking. They cited complexities that could arise from funds being distributed across multiple protocols.

EigenLayer’s launch introduced EigenDA. This is a data availability service and the first AVS to operate on the protocol. However, other AVSs must register with EigenLayer and are unable to deploy fully at this time.

EigenLayer has acquired a total value locked of $13.33 billion. This makes it the second-largest DeFi protocol after Lido. However, concerns remain about the protocol’s readiness for widespread adoption. This is without the implementation of key features like slashing and AVS payouts.

April 10, 2024 at 10:40 am

Updated April 10, 2024 at 10:40 am

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top