This might be one of the next big things.
New platform @EigenLayer, a "re-staking" solution.
No discord. No airdrop announcement. No token details. Not a lot, yet. Real alpha, hidden in Coinbase's 2023 Report.
🧵 What is Eigen and how it might revolutionize Ethereum:
New platform @EigenLayer, a "re-staking" solution.
No discord. No airdrop announcement. No token details. Not a lot, yet. Real alpha, hidden in Coinbase's 2023 Report.
🧵 What is Eigen and how it might revolutionize Ethereum:
1/13
What is @eigenlayer?
It's a "re-staking" solution:
Imagine if your 32 staking ETH deposit could not only be used to secure Ethereum's POS, but also other apps and services, like Oracles or Bridges AT THE SAME TIME.
That is what Eigen Layer enables.
What is @eigenlayer?
It's a "re-staking" solution:
Imagine if your 32 staking ETH deposit could not only be used to secure Ethereum's POS, but also other apps and services, like Oracles or Bridges AT THE SAME TIME.
That is what Eigen Layer enables.
2/13
Why would you use Eigen instead of just staking?
As you will not only be securing Ethereum but also other apps, those apps can earn you an additional yield on top of ETH's native APY.
E.g. one can build an Oracle using Eigen and provide services secured by the staked ETH.
Why would you use Eigen instead of just staking?
As you will not only be securing Ethereum but also other apps, those apps can earn you an additional yield on top of ETH's native APY.
E.g. one can build an Oracle using Eigen and provide services secured by the staked ETH.
3/13
From NewOrderDAO:
"Eigen will be the most important innovation for Ethereum.
Through re-staking, which leverages an existing trust network to secure other infrastructure and middleware layers, Eigen significantly reduces security costs and systemic risk."
From NewOrderDAO:
"Eigen will be the most important innovation for Ethereum.
Through re-staking, which leverages an existing trust network to secure other infrastructure and middleware layers, Eigen significantly reduces security costs and systemic risk."
4/13
How would it work?
You stake as per usual, but then your stake is "re-staked" on Eigenlayer by setting the withdrawal permissions to the Eigen smart contracts.
Then, Eigen's smart contracts talk to middleware contracts that could slash re-stakers if there's misbehaviour.
How would it work?
You stake as per usual, but then your stake is "re-staked" on Eigenlayer by setting the withdrawal permissions to the Eigen smart contracts.
Then, Eigen's smart contracts talk to middleware contracts that could slash re-stakers if there's misbehaviour.
5/13
How does it change the security of a protocol?
• Protocol without Eigen support: the attacker needs to attack the security provider
• Protocol with Eigen support: the attacker needs to attack the security provider + the network of ETH validators supporting the protocol
How does it change the security of a protocol?
• Protocol without Eigen support: the attacker needs to attack the security provider
• Protocol with Eigen support: the attacker needs to attack the security provider + the network of ETH validators supporting the protocol
6/13
What could be the user risks?
Since you are giving control of your staked ETH to Eigen, and then in turn Eigen is communicating with middlewares that do other stuff (like bridges, oracles, data availability services) then your ETH could get slashed if there's misbehaving
What could be the user risks?
Since you are giving control of your staked ETH to Eigen, and then in turn Eigen is communicating with middlewares that do other stuff (like bridges, oracles, data availability services) then your ETH could get slashed if there's misbehaving
7/13
Use cases:
• Data availability services
• Oracles
• Bridges
• Rollup sequencers (decentralizing Optimism and Arbitrum for example)
• RPC nodes, like Infura
• MEV Management
Check this thread by MeirBank, very informative 👇
Use cases:
• Data availability services
• Oracles
• Bridges
• Rollup sequencers (decentralizing Optimism and Arbitrum for example)
• RPC nodes, like Infura
• MEV Management
Check this thread by MeirBank, very informative 👇
8/13
What's the current stage of the project?
• In October 2022, Eigen announced that collateral refilling, liquidation and more can be built on @eigenlayer
What's the current stage of the project?
• In October 2022, Eigen announced that collateral refilling, liquidation and more can be built on @eigenlayer
9/13
• In November 2022, CEO of Eigen (@sreeramkannan) was on a Bankless podcast.
What did he say?
• Currently Eigen runs on internal governance devnet, and onboarding first protocols
• Public testnet: February-March
• Mainnet: May-July
• In November 2022, CEO of Eigen (@sreeramkannan) was on a Bankless podcast.
What did he say?
• Currently Eigen runs on internal governance devnet, and onboarding first protocols
• Public testnet: February-March
• Mainnet: May-July
10/13
What do we know about $EIGEN?
No information so far. I think that the project will have its own token, eventually 👀
There is nothing explicit to do for end users atm, other than stay informed and start getting to know the solutions.
This is an informative thread!
What do we know about $EIGEN?
No information so far. I think that the project will have its own token, eventually 👀
There is nothing explicit to do for end users atm, other than stay informed and start getting to know the solutions.
This is an informative thread!
11/13
💡 Eigen was mentioned in the Coinbase "2023 Market outlook" report.
Page 30:
🔗 coinbase.bynder.com
💡 Eigen was mentioned in the Coinbase "2023 Market outlook" report.
Page 30:
🔗 coinbase.bynder.com
12/13
Key additional data:
• Eigen is built by Layr Labs, which raised $15.6M in 3 rounds of funding
(more: 🔗 crunchbase.com)
• CEO: @sreeramkannan is Director of Blockchain Lab division in University of Washington
• Unofficial TG: t.me
Key additional data:
• Eigen is built by Layr Labs, which raised $15.6M in 3 rounds of funding
(more: 🔗 crunchbase.com)
• CEO: @sreeramkannan is Director of Blockchain Lab division in University of Washington
• Unofficial TG: t.me
13/13
Additional links if you want to deep dive into their tech:
🔗 blockworksresearch.com
▶️ Bankless: youtube.com
▶️ a16z crypto research: youtube.com
🔗 research.thetie.io
Additional links if you want to deep dive into their tech:
🔗 blockworksresearch.com
▶️ Bankless: youtube.com
▶️ a16z crypto research: youtube.com
🔗 research.thetie.io
Information about Eigen will probably start flowing to CT soon enough. There are a few key people, like @sassal0x, that started talking about it recently.
Stay tuned for more information about launch, tokens, or any contributions to be made. I'II publish the alpha
⚡️
Stay tuned for more information about launch, tokens, or any contributions to be made. I'II publish the alpha
⚡️
Join Earndrop Alpha Discord for cryptocurrency alpha information, and a cool community to share knowledge and opportunities:
🔗 earndrop.io
👥 Member count: 22,710
🔗 earndrop.io
👥 Member count: 22,710
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