⛓️EigenLayer

EigenLayer is an Ethereum-based protocol introducing restaking, a cryptoeconomic security primitive. It allows users to rehypothecate their staked $ETH through EigenLayer contracts, extending security to other network applications.

EigenLayer's Mechanism

Cryptoeconomic security is a core challenge in Web3. With the Ethereum network's current design, middleware and non-EVM applications must create their own trust network, leading to fragmented security. This process is inefficient, costly, and complex to maintain.

EigenLayer addresses this through the restaking primitive. Users repurpose their locked $ETH to extend security to other network applications, creating a rehypothecation system for staked $ETH. The protocol includes an opt-in layer, granting EigenLayer additional enforcement rights on staked $ETH. This introduces new slashing conditions that ensure extensible security for other projects such as bridges and data layers built on Ethereum. Hence, EigenLayer deploys restaked $ETH to additional applications, using slashing conditions to encourage honesty and discourage malicious behavior, allowing staked $ETH to validate beyond Ethereum itself.