EigenLayer is a protocol built on Ethereum that introduces restaking, a new primitive in cryptoeconomic security. This primitive enables the reuse of ETH on the consensus layer. Users that stake ETH natively or with a liquid staking token (LST) can opt-in to EigenLayer smart contracts to restake their ETH or LST and extend cryptoeconomic security to additional applications on the network to earn additional rewards.
What is EigenLayer?
EigenLayer is a middleware that connects different staking protocols on Ethereum, such as Rocket Pool and Lido. You can stake your ETH or liquid staking derivatives (such as rETH or stETH) on EigenLayer, and receive a new token called eETH, which represents your stake on EigenLayer. You can then use eETH for various purposes, such as lending, borrowing, trading, or governance.
The benefits of restaking on EigenLayer are twofold: first, you can enjoy lower gas fees and faster transactions than on the base layer; second, you can earn additional rewards from the EigenLayer protocol, which are distributed proportionally to the amount of eETH you hold. The rewards come from the fees collected by EigenLayer from the users of its services.
However, restaking on EigenLayer also involves more risk. First, you are exposed to the risk of the underlying staking protocol, such as slashing or downtime. Second, you are exposed to the risk of EigenLayer itself, such as bugs, hacks, or malicious validators. Third, you are exposed to the risk of eETH losing value or liquidity in the market. Therefore, you should only restake on EigenLayer if you are comfortable with these risks and have done your own research.
The EigenLayer Token distribution
Taking part the EigenLayer Bonus program: A Simplified Step-by-Step Tutorial
- 💰 Link your active cryptocurrency wallet. Note: Unused or new wallets are not qualified.
- 🚀 Claim your $EigenLayer tokens.
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