EigenLayer’s Innovative Testnet Launch Shakes Up Ethereum Staking

Key Points:

• EigenLayer protocol allows re-staking of assets on emerging networks. Validators earn additional yields and help smaller networks grow securely. Testing in three stages; mainnet launch in Q3.
• $50M funding from leading crypto venture firms. Decentralized marketplace for Ethereum node operators and validators to earn fees on additional services.
• Ethereum co-founder Joseph Lubin praises EigenLayer as a new paradigm for fostering protocol-centric innovation. Almost 15% of the entire Ethereum supply staked on the Beacon Chain, valued at $33.6 billion.

A new protocol called EigenLayer has recently launched on testnet, allowing Ethereum validators and stakers to “re-stake” their assets onto other emerging networks.

This is a significant development, as it allows validators to earn additional yields and helps smaller networks to grow securely. The protocol has received $50 million in funding from leading crypto venture firms, including Blockchain Capital, Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner.

The mainnet launch of EigenLayer is scheduled for Q3, and testing will be carried out in three stages to onboard various participants into the ecosystem. The first stage will use Ethereum’s Goerli testing network.

EigenLayer aims to become a decentralized marketplace for Ethereum node operators and validators to earn fees on additional services. In addition to allowing validators to restake assets they received in exchange for staking Ether on platforms such as Lido (stETH) and RocketPool (rETH), the protocol also enables them to validate and secure other networks, such as sidechains or non-EVM blockchains, using the same assets.

According to Eigen Layer’s white paper, the protocol also has plans to enable restaking for ETH withdrawn from the Beacon Chain following the Shapella upgrade. Validators can set their beacon chain withdrawal credentials to EigenLayer smart contracts and opt-in to new modules built on EigenLayer.

EigenLayer founder Sreeram Kannan has highlighted the protocol’s potential to address issues with validator economic incentives. He believes that facilitating the moving and re-staking of ETH onto other networks would incentivize validators and stakers with additional yields and allow smaller networks to grow securely.

Ethereum co-founder Joseph Lubin has praised Eigen Layer, stating that it is at the forefront of some of the most exciting work happening in Ethereum. He added that EigenLayer is a new paradigm for fostering protocol-centric innovation through a programmatic, decentralized trust marketplace. It is worth noting that Lubin’s Ethereal Ventures fund has invested in EigenLayer.

Currently, there are 17.9 million ETH staked on the Beacon Chain, valued at around $33.6 billion. This represents almost 15% of the entire Ethereum supply and is more than the entire market capitalization of USDC.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Annie

Coincu News