A new testnet protocol lets Ethereum validators and stakers “re-stake” their assets on other upcoming networks.
However, testing will be done in three stages to onboard ecosystem members before the EigenLayer protocol mainnet launch in Q3. First stage uses Ethereum’s Goerli testing network.
Blockchain Capital led a $50 million Series A fundraising round in late March with Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner.
EigenLayer wants to create a decentralized marketplace enabling Ethereum node operators and validators to provide extra services. It lets them restake assets they obtained by staking Ether on Lido (stETH) and RocketPool (rETH). Assets can validate and secure sidechains and non-EVM blockchains.
The white paper states that EigenLayer will enable restaking for ETH taken from the Beacon Chain after the Shapella upgrade.
“Ethereum validators can set their beacon chain withdrawal credentials to the EigenLayer smart contracts, and opt-in to new modules built on EigenLayer.”
The protocol addresses validator economic incentive difficulties. EigenLayer founder Sreeram Kannan suggested that allowing ETH to be moved and re-staked on other networks would reward validators and stakers with higher yields and help smaller networks develop securely.
We are excited to announce the release of the testnet for the first stage of the EigenLayer protocol, which supports liquid and native restaking.
In late March, Ethereum co-founder Joseph Lubin said that “[t]he Eigen Labs team is at the forefront of some of the most exciting work happening in Ethereum.”
“Eigenlayer is a new paradigm for fostering protocol-centric innovation through a programmatic, decentralized trust marketplace,” he added. Great praise, but Lubin’s Ethereal Ventures fund invested in EigenLayer.
Ultrasound.Money reports 17.9 million Beacon Chain ETH staked. This is worth $33.6 billion at current prices, surpassing USDC’s market cap. Around 15% of Ethereum is it.
