Introduction to Eigenlayer
Introduction to Eigenlayer, one of the first restaking protocol.
Last updated
Introduction to Eigenlayer, one of the first restaking protocol.
Last updated
Eigenlayer makes it easy for innovators to collaborate with Ethereum's stakers and node operators. It enables multiple parties who do not trust each other to work together and create something meaningful. Eigenlayer essentially grants a simple way to utilize Ethereum's 'decentralized trust' module, which promotes open innovation. This eliminates the need for protocols to develop their validator set and allows them to access Ethereum's computing and financial resources easily.
Actively Validated Services (AVS): AVS in Eigenlayer are decentralized services that will inherit Ethereum's security via EigenLayer. These services can support various networks, like sidechains, data layers, and more. Eigenlayer enhances security by using Ethereum's pooled resources for activities such as middleware services, block building and transaction ordering, opening doors for innovation in areas like MEV and PBS.
Ethereum Stakers: Ethereum stakers in Eigenlayer can secure multiple networks by restaking their ETH. This means they can use their existing capital to support multiple networks through smart contracts. While this offers additional yields, it also poses a risk of slashing if stakers fail to meet the conditions set by the services they choose to support.
Node Operators: Node operators in Eigenlayer provide computational resources to securely run various services, including decentralized applications (DA), oracles, and bridges. These operators have the freedom to choose the services they work for and implement the recommendations provided by the AVS.
Eigenlayer Protocol: The Eigenlayer protocol consists of Ethereum smart contracts that facilitate trustless collaboration between stakers, node operators, and services. These contracts allow users to restake their assets, delegate them to node operators, and interact with on-chain service modules. Service modules have preset conditions for rewards and slashing to ensure smooth interactions between operators and services.
As the name suggests, an AVS can refer to any service that requires active validation to function.
In the context of BPM Finance, AVS generally refer to services built on EigenLayer that accept pooled "restaked" collateral (e.g. natively staked ETH and/or LST) on the condition that the the restaker may lose access to some or all of those funds if they fail in their validation duties according to a well defined set of rules known as slashing conditions.
As an example, the very first AVS developed in-house by EigenLayer, , requires operators to store and persist data blobs for a set period of time. Incorrectly storing or failing to persist the assigned data may result in slashing of the operator.
Several protocols have already expressed interest in joining the Eigenlayer AVS ecosystem.
The ecosystem allows Ethereum validators to restake their ETH and provide services to the network, such as a Data Availability Layer with a particular type of node software called Actively Validated Services (AVS). Eigenlayer Operators act as AVS nodes by opting into validating AVSs by running their AVS software. An AVS Node is a node that runs the AVS software as an Eigenlayer Operator. For more information, see the EigenLayer documentation around .
The EigenPod contract is set as the withdrawal address for a validator. Before any exited ETH are returned to the staker's or operator's wallet, they flow through this contract, which has the power to slash them in case the AVS operator misperforms their duties. This way, the AVS operator's work is backed by the same 32ETH stake as the ETH validator's work, meaning the results of AVS operator consensus can be considered similarly secure.
Similar to staking ETH to participate in Ethereum validation, restaking assets to participate in AVS validation is a commitment that carries potential penalties in the form of slashing, but is compensated with additional rewards for each service validated.
To facilitate the reuse of natively staked Ethereum, EigenLayer employs what is called an . An EigenPod is a smart contract connecting the ETH validator, stakers, and operators. These contracts manage the accounting and restaking of ETH in validators that are actively participating in Ethereum consensus.