ELIP-01: EigenLayer Improvement Proposal Staker-Driven Module Evaluation and Risk Assessment Framework

Title: EigenLayer Improvement Proposal: Staker-Driven Module Evaluation and Risk Assessment Framework
Author: Pintea Tudor

This proposal introduces a comprehensive framework for stakers to evaluate and assess the risk of new modules within the EigenLayer protocol. The framework aims to standardize the process of module validation, enhance the decision-making capabilities of stakers, and improve the overall security and reliability of the modules built on top of the Ethereum ecosystem.

1. Introduction:
EigenLayer has enabled a new paradigm where Ethereum stakers can extend their consensus power to additional modules, thereby increasing the utility and security of the network. However, the current system lacks a standardized approach for stakers to assess the risks associated with these modules. This proposal seeks to address this gap by establishing a clear evaluation and risk assessment framework.

2. Motivation:
The primary motivations for this proposal are:

  • To empower stakers with better tools and information for making informed decisions about which modules to validate.
  • To create a standardized risk assessment protocol that can be applied uniformly across various modules, ensuring consistency and transparency.

3. Specification:

  • Module Evaluation Criteria: Develop a set of criteria for evaluating the security, performance, and economic impact of new modules. This will include code audits, performance benchmarks, and economic models.
  • Risk Assessment Protocol: Introduce a protocol for assessing the risk level of each module, which will be used to inform stakers about the potential risks and rewards associated with validating different modules.
  • Staker Education Program: Implement an education program to help stakers understand the evaluation criteria and risk assessment protocol. This program will include resources, workshops, and tools to aid stakers in their decision-making process.
  • Module Risk Rating System: Create a rating system that classifies modules based on their assessed risk level. This rating will be visible to all stakers and will be updated periodically based on ongoing evaluations.
  • Feedback and Reporting Mechanism: Establish a mechanism for stakers to provide feedback on modules and report any issues or anomalies they encounter during validation.

4. Rationale:
A standardized evaluation and risk assessment framework will lead to a more informed and efficient staking community. Stakers will be able to make decisions based on a comprehensive understanding of the risks and potential rewards, leading to a more secure and stable EigenLayer ecosystem.

5. Backward Compatibility:
The proposed framework is designed to integrate seamlessly with the existing EigenLayer protocol without disrupting current operations. It will serve as an additional layer of information and support for stakers.

6. Test Cases:

  • Pilot the framework with a select group of stakers and a variety of new modules to gather initial feedback and data.
  • Analyze the effectiveness of the education program through staker surveys and knowledge assessments.
  • Monitor the impact of the module risk rating system on staker behavior and module selection.

7. Implementation:

  • Collaborate with security experts and economists to develop the module evaluation criteria and risk assessment protocol.
  • Build and deploy the education program and related materials.
  • Design and implement the module risk rating system, integrating it with the EigenLayer user interface.

8. Security Considerations:

  • Ensure that the evaluation and risk assessment processes are transparent and resistant to manipulation.
  • Protect the integrity of the feedback and reporting mechanism to prevent false reporting and feedback loops.

9. Conclusion:
This improvement proposal aims to enhance the EigenLayer protocol by providing stakers with a robust framework for module evaluation and risk assessment. By doing so, it seeks to promote a more secure, stable, and transparent environment for the growth and innovation of decentralized applications on Ethereum.

Stakeholder input and collaboration will be vital in refining this framework, and we invite the community to participate in the discussion and development process.


Could see the need for this way down the road once there are more AVS builders, think they mentioned that these guys have built this kinda framework in an AMA a while back.