The restart protocol EigenLayer will be partially launched on the Ethereum mainnet
EigenLayer, the Ethereum rebalancing protocol with over $13 billion in assets, has launched on the blockchain network, but some key features are still to come and will go live sometime in 2024.
EigenLayer announced the launch in a blog post on April 9, but intra-protocol payments for operators with actively authenticated services (AVS), such as apps and cross-chain bridges, are yet to come.
A mechanism called slinging — where validators take their shares of crypto if they don't do their job properly — is still on the way.
Both will come “later this year” after the EigenLayer marketplace has had time to “develop and stabilize,” the protocol said, without specifying a timeline.
Starting today, re-seekers can now give their recaptured ETH balances to Eigenlayer operators who in turn give AVSS.
“So still no prizes?” Kristen Kim, Galaxy Digital's vice president of research, asked rhetorically in a Reply X post.
The hope of rebranding protocols like EigenLayer is to allow users to redeem their previously held Ether (ETH) tokens to earn rewards – which are 1:1 tied to ETH tokens held in a protocol like Lido or Rocket Pool.
Analysts at Coinbase said last week that the recovery could increase revenue, but “may increase risks” as the same funds could be sent to multiple protocols, creating complex security and financial issues.
Alongside the mainnet launch, EigenLayer released EigenDA, the first AVS launched on the protocol to help other blockchain applications store transaction data.
Related: Aave Thinks Payment Distribution in the DeFi Shake
Other AVs, however, must be registered with EigenLayer and cannot now be fully deployed.
In a separate X post, Galaxy's Kim said she doesn't understand “why everyone's talking about this.” [EigenDA] News, 99% of recovery is based on economics, balancing risk with reward.
“There is still no risk (ie, reduction) or reward (ie, AVS payments) on live streaming [EigenLayer] So no reboot yet. [in my opinion]” she added.
EigenLayer has locked in a total of $13.33 billion, Defillama said.
Awen took the lead in early March to become the second-largest decentralized finance protocol behind Lido with a locked-in value of $33 billion.
Magazine: Ethereum Resurgence – Blockchain Innovation or Dangerous House of Cards?
