DeFi EigenLayer introduces Restaking in Ethereum

EigenLayer is a decentralized protocol that is built on the Ethereum crypto network. This project has started the implementation of restaking, providing a new crypto-economic security. In the article we will understand both the project and the restaking.

A little acquaintance with the EigenLayer project

The project was created by Sriram Kannan. He heads the blockchain lab at UW. The project belongs to the company EigenLabs. The team was able to attract about 64.5 million dollars. The project itself is estimated at 500 million. 

The developed protocol makes it possible to re-hypothesize $ETH at the moment of consensus. Users who bet in $ETH can additionally subscribe to the smart contract of the project. Due to this, you can make a restaking of your coins, thereby spreading crypto-economic security. It will cover additional network applications.

Thus, some of the project's capabilities will aggregate and expand crypto-economic security. This is done by restaking and checking new dApps that will be created on top of Ethereum.

What are the problems of crypto-economic security

Crypto-economic security is the main problem of Web 3.0. It has significant difficulties. One of these is fragmented security. It is especially strong in the Ethereum crypto network. This is due to the fact that many applications are built on top of the crypto network. At the same time, they must have their own network of trust. However, this is not an effective solution. 

Performing protection from the initial download is an expensive and resource-intensive solution. At the same time, it takes a huge amount of time to create it. At the same time, the security of the crypto network requires it to be constantly maintained and scaled.

The EigenLayer project launches for the first time a new mechanism that provides this crypto-economic security. For this, restaking is involved. It allows you to overcome the above problems and aggregate security in the main crypto network.

Restaking works on the basis of a whole set of smart contracts. This can be defined as if the project includes a system of repeated "mortgages" for coins that are sent to staking. The protocol creates an intermediate level of consensus. In it, the user agrees to grant the project additional rights to force the use of their coins in staking. Thanks to this, they will be efficiently transferred to other applications.

Thanks to the project, additional abbreviations will be created for zaseikan coins. At the same time, they will remain above the consensus level. In this way, security will expand. After all, new conditions can be introduced to meet the needs of other projects, for example, cross-chain bridges, or data access levels that are built on top of the main network.

How the restaking mechanism works

Existing problems in the crypto network are solved with the help of unified security and free market management. In the first case, in Ethereum, all applications and protocols that were not developed on EVM must ensure their own security, since the basic level does not apply to them.

As a result, restaking allows you to create an optimized unified security system. The coins embedded in the stake, which were used as collateral to protect the network, remained frozen. However, if the user agrees to the new reduction conditions, the project will withdraw these coins from the staking to redirect them to other applications of the crypto network. As a result, stake holders will be able to receive additional rewards for their coins, and validators will be able to receive additional income from AVS.

The concept of free market management will allow the protocol to control the volume of total security consumed. At the same time, validators will be granted the same license for the amount of security provided. Thanks to this, a competitive market will be created, creating a common security without participation. As a result, validators will be able to independently determine which protocols they are ready to run. This way, non-promising protocols will be eliminated.

This will create an open competitive market where protocols will buy general security from validators. The latter, in turn, will be able to sell protocols. At the same time, the inefficiency that exists in security models will be eliminated.

It will also make it easier to launch new protocols with the necessary level of security, since he will not have to create it from scratch. He'll just buy it.

Restaking will also reduce possible capital expenditures on validators, since stake holders will be able to invest their initial coins in many protocols many times, except for Ethereum itself. There will be additional income from this.

What is known about the launch of restaking

At the moment, the team has stated that it has set the parameters for both liquid and native restaking. In the first case, a maximum of 3200 of each coin is accepted and a maximum of 32 coins are deposited to the address. At the same time, its own restaking will be suspended as soon as 9600 ETH is added.

Thanks to restaking, it will be possible to use ETH in other protocols. For this, you will need to pay a commission and remuneration for the protocol.

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