EigenLayer

Introduction to EigenLayer

EigenLayer introduces restaking—a mechanism allowing Ethereum stakers to use their staked ETH to simultaneously secure additional protocols and services. This seemingly simple concept has profound implications: it enables new systems to bootstrap security from Ethereum’s massive validator set rather than creating their own from scratch.

The protocol addresses one of crypto’s fundamental challenges: every new system needs economic security, but building that security independently is expensive and inefficient. By creating a marketplace for Ethereum’s pooled security, EigenLayer could dramatically reduce the cost of launching new decentralized services.

How EigenLayer Works

Restaking Concept

Core mechanism:

• ETH stakers opt-in to EigenLayer
• Staked ETH secures additional services
• Additional slashing conditions accepted
• Earn rewards from multiple sources

Actively Validated Services (AVS)

Secured systems:

• Services requiring economic security
• Oracles, bridges, sequencers, etc.
• Pay for security
• Custom slashing conditions

Operators

Infrastructure providers:

• Run AVS software
• Manage delegated stake
• Earn fees from services
• Take on operational risk

Technical Specifications

Metric	Value
Network	Ethereum
TVL	$15B+ restaked
Staking Types	Native ETH, LSTs
AVS	10+ launched
Operators	200+ registered

The EIGEN Token

Dual Token Model

Unique design:

• EIGEN for intersubjective security
• Restaked ETH for objective security
• Different security guarantees
• Complementary functions

Utility

EIGEN purposes:

• Staking: AVS security
• Governance: Protocol decisions
• Slashing: Intersubjective faults
• Rewards: Service participation

Intersubjective Security

Philosophical concept:

• Beyond objective verification
• Social consensus on faults
• Broader security guarantees
• Novel cryptoeconomic design

Restaking Categories

Native Restaking

Direct ETH staking:

• Validator credentials to EigenLayer
• Full ETH staking rewards
• Plus EigenLayer rewards
• Maximum capital efficiency

Liquid Restaking (LST)

Token-based:

• Stake stETH, rETH, etc.
• Maintain liquid staking token liquidity
• Additional yield layer
• Popular entry point

Liquid Restaking Tokens (LRTs)

Ecosystem products:

• EtherFi (eETH)
• Renzo (ezETH)
• Kelp (rsETH)
• Composable restaking

Actively Validated Services

Launch AVS Examples

Initial services:

• EigenDA: Data availability
• Lagrange: ZK coprocessing
• AltLayer: Rollup infrastructure
• Hyperlane: Interoperability

AVS Categories

Service types:

• Data availability layers
• Oracle networks
• Bridges and messaging
• Sequencer sets
• Keeper networks

Security Model

How AVS benefit:

• Borrow Ethereum’s security
• Lower bootstrapping cost
• Faster launch
• Credible slashing

EigenDA

Data Availability

Flagship AVS:

• DA for rollups
• Cheaper than Ethereum DA
• EigenLayer security
• Scalable throughput

Competition

DA landscape:

• vs. Celestia
• vs. Ethereum blobs
• vs. Avail
• Price and security trade-offs

Economic Model

Fee Flow

Value distribution:

• AVS pay for security
• Fees to operators/restakers
• Competitive pricing
• Market-based rates

Slashing Risks

Security trade-offs:

• Additional slashing conditions
• AVS-specific risks
• Operator mistakes
• Smart contract bugs

Risk Management

Mitigation approaches:

• Gradual rollout
• Insurance mechanisms
• Slashing caps
• Reputation systems

LRT Ecosystem

Liquid Restaking Growth

Category emergence:

• Multiple LRT providers
• Competitive features
• Point farming
• Composability benefits

Risks

LRT considerations:

• Multiple layers of risk
• Smart contract stacking
• Slashing exposure
• Liquidity assumptions

Competition and Positioning

vs. Other Security Models

Approach	Security Source	Trade-off
EigenLayer	Ethereum stake	Restaking risk
Native	Own validators	Bootstrap cost
Cosmos	Shared security	Ecosystem limit
Polkadot	Relay chain	Slot competition

EigenLayer Advantages

Key differentiators:

• Ethereum’s massive security
• Flexible security rental
• Capital efficiency
• Ecosystem integration

Challenges and Criticism

Systemic Risk

Concerns:

• Cascading slashing
• Correlated failures
• Too much leverage
• Unknown unknowns

Complexity

Understanding gaps:

• Difficult to assess risks
• Many moving parts
• User comprehension
• Risk disclosure

Centralization

Operator concentration:

• Large operators dominate
• Delegation dynamics
• Professional operators needed
• Decentralization trade-offs

Recent Developments

EIGEN Launch

Token distribution:

• Stakedrop to restakers
• Community allocation
• Non-transferable initially
• Governance activation

AVS Expansion

Ecosystem growth:

• New AVS launches
• Integration partnerships
• Developer tools
• Documentation

Future Roadmap

Development priorities:

• AVS Ecosystem: More services
• Decentralization: Operator distribution
• Security: Risk frameworks
• Tooling: Developer experience
• Governance: Community control

Conclusion

EigenLayer represents one of the most ambitious attempts to solve crypto’s security bootstrapping problem. By creating a marketplace for Ethereum’s pooled security, it could dramatically reduce the cost and complexity of launching new decentralized services.

The concept is elegant: reuse existing security rather than recreating it. However, the systemic risks of stacking security layers remain poorly understood, and the complexity of the full system—restaking, operators, AVS, slashing—creates real risks that users may not fully appreciate.

For Ethereum stakers seeking additional yield and for new protocols seeking credible security without massive capital requirements, EigenLayer offers compelling value—though understanding and accepting the additional risks is essential.