Protocol Allowing ETH Restaking Just Launched on Testnet

A new protocol that allows ethereum validators and stakers to “re-stake” their assets to other emerging networks has just launched on a testnet.

Data Center Operator Hosting 16% of Ethereum Nodes Bans Mining, Staking

However, the main network of the EigenLayer protocol will not be launched until the third quarter of this year, and the test will be carried out in three stages to allow different participants to enter the ecology. The first stage is to use Ethereum’s Goerli testnet.

The project has received significant backing and secured $50 million in Series A funding in late March, led by crypto venture capital firm Blockchain Capital, with participation from Coinbase Ventures, Polychain Capital, Electric Capital and Finality Capital Partners.

EigenLayer aims to be a decentralized marketplace where Ethereum node operators and validators can earn fees for additional services. It allows them to re-mortgage their assets obtained by staking Ether on platforms such as Lido (stETH) and RocketPool (rETH). Assets can be reused to validate and secure other networks, such as sidechains or non-EVM blockchains.

According to the white paper, EigenLayer also plans to allow restaking of ETH withdrawn from the beacon chain after the Shapella upgrade.

“Ethereum validators can place their beacon chain withdrawal authorizations on the EigenLayer smart contract and opt-in to new modules built on EigenLayer.”

The protocol aims to solve the problem of economic incentives for validators. Facilitating the transfer and restaking of ETH to other networks will incentivize validators and stakers to earn additional profits and allow smaller networks to grow in a secure manner, said EigenLayer founder Sreeram Kannan.

At the end of March, Ethereum co-founder Joseph Lubin stated that “Eigen Labs is leading some of the most exciting work happening on Ethereum.”

“Eigenlayer is a new model for driving protocol-centric innovation through a programmatic decentralized trust marketplace.”

Praise, but note that Lubin’s Ethereal Ventures fund invested in EigenLayer.

According to tracking tool Ultrasound.Money, there are currently 18.1 million ETH staked on the Beacon Chain. At current prices, this is worth approximately $33.5 billion, more than the entire market cap of USDC. It accounts for almost 15% of the total Ethereum supply.

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As reported by Cointelegraph

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