A brand new protocol that permits Ethereum validators and stakers to “re-stake” their property onto different rising networks has simply launched on testnet.
The mainnet launch of the EigenLayer protocol isn’t anticipated till Q3, nonetheless, and testing will probably be phased in three levels to onboard numerous contributors into the ecosystem. The primary stage is utilizing Ethereum’s Goerli testing community.
The venture has some severe backing and introduced $50 million in a Sequence A funding spherical in late March led by crypto enterprise agency Blockchain Capital, together with Coinbase Ventures, Polychain Capital, Electrical Capital and Finality Capital Accomplice.
EigenLayer goals to change into a decentralized market for Ethereum node operators and validators to earn charges on extra companies. It permits them to restake property they obtained in change for staking Ether on platforms resembling Lido (stETH) and RocketPool (rETH). The property could be reused to validate and safe different networks, resembling sidechains or non-EVM blockchains.
In accordance to the white paper, EigenLayer additionally has plans to allow restaking for ETH withdrawn from the Beacon Chain following the Shapella improve.
“Ethereum validators can set their beacon chain withdrawal credentials to the EigenLayer good contracts, and opt-in to new modules constructed on EigenLayer.”
The protocol goals to deal with points with validator financial incentives. EigenLayer founder Sreeram Kannan stated that facilitating the transferring and re-staking of ETH onto different networks would incentivize validators and stakers with extra yields and permit smaller networks to develop securely.
We’re excited to announce the discharge of the testnet for the primary stage of the EigenLayer protocol, which helps liquid and native restaking.
Please learn the total particulars right here: https://t.co/1eoriZOcwo
— EigenLayer (@eigenlayer) April 6, 2023
In late March, Ethereum co-founder Joseph Lubin stated that “[t]he Eigen Labs workforce is on the forefront of among the most enjoyable work occurring in Ethereum.”
“Eigenlayer is a brand new paradigm for fostering protocol-centric innovation by way of a programmatic, decentralized belief market,” he added. Excessive reward, however it’s price noting that Lubin’s Ethereal Ventures fund has invested in EigenLayer.
There are at the moment 17.9 million ETH staked on the Beacon Chain, based on the Ultrasound.Cash tracker. At present costs, that is valued at round $33.6 billion, which is greater than your complete market capitalization of USDC. It represents virtually 15% of your complete Ethereum provide.