Ethereum ‘re-staking’ protocol EigenLayer launches on testnet
Ethereum validators and speakers allow to re-stake their assets onto other emerging networks has just launched on Testnet.
The Mainnet launch of the EigenLayer protocol is not expected until Quarter 3, however, and testing will be phased in three stages to onboard different participants into the ecosystem.
The Ethereum re-staking collective aims to address Ethereum validator economic incentives.
Electric capital and finality capital partner.
EigenLayer aims to become a decentralized marketplace for Ethereum node operators and validators to earn fees on additional services. it allows them to retake assets they received in exchange for staking Ether on platforms like Lido (stETH) and RocketPool(rETH).
The assets can be reused to validate and secure other networks like sidechains or non-EVM blockchains.
EigenLayer also plans to enable restacking for ETH withdrawn from the Beacon Chain following the Shapella upgrade.
"Ethereum validators can set their beacon chain withdrawn credentials to the EigenLayer smart contracts and opt-in to new modules built on EigenLayer."
The protocol aims to address issues with validator economic incentives EigenLayer founder Sreeram Kannan express that facilitating the moving and re-staking of ETH onto other networks would incentivize validators and stakes with extra yields and allow the smaller network to grow securely.
We are excited to announce the release of the testnet for the first stage of the EigenLayer protocol, which supports liquid and native restaking.— EigenLayer (@eigenlayer) April 6, 2023
Please read the full details here: https://t.co/1eoriZOcwo
Ethereum co-founder Joseph Lubin expresses that the Eigen Labs team is at the forefront of some of the most exciting work happening in Ethereum.
Eigenlayer is a new paradigm for fostering protocol-centric innovation through a program, decentralized trust marketplace he added high praise but it is worth noting that Lubin Ethereal ventures fund has invested in EiigenLayer. There are currently 17.9 million ETH staked on the Beacon Chain.