This topic is created to discuss the possibility of directly involving EigenLayer’s delegated stake in AVS (Autonomous Verification Systems) Operators’ delegations.
Elastic/pooled security refers to the delegated liquidity on the Operators’ side. AVS Operators (which I like to call as LRT protocols) could either receive direct deposits from stakers or obtain a portion of the delegation that stakers have allocated to EigenLayer.
If EigenLayer delegates user stakes to top Operators, this may create a liquidity imbalance, where pooled security benefits all AVSs, while elastic security might result in weaker AVSs—those not supported by top Operators—suffering from insufficient liquidity and potentially lower Cost of Capital (CoC).
The elastic security and free market for AVS Operators can lead to opportunities for addressing weaker AVSs, which might be more vulnerable to attacks and thus have a significantly lower CoC compared to others.
To mitigate these issues and build a more organic and sustainable ecosystem, I suggest:
- Direct EigenLayer Support (Optional): Provide optional support from EigenLayer to modules that lag behind and have the least amount of delegated liquidity from operators in the future.
- EigenLayer Ranking and Monitoring: EigenLayer should create a ranking of all operators and monitor their activity. A voting mechanism could be implemented to determine where the directly delegated EigenLayer stake should be used and which operators should be chosen based on their performance and the strength of their AVSes.