What is Eigen Layer? In simple terms

[0xAsharib]

• EigenLayer is a marketplace for decentralized trust on the Ethereum blockchain⛓️

• It allows staked ETH to be rehypothecated, meaning users can stake their ETH to secure Ethereum and stake it elsewhere without unstaking✨

• This means that protocols can benefit from the security of the Ethereum blockchain, as the staked collateral secures both Ethereum and the protocol🔥

• Users benefit from double staking yield, one from Ethereum and one from the additional protocol secured that uses EigenLayer

• This is a novel mechanism in crypto-economic security that enables securing more than one layer of trust with a single collateral🔐

• Previously, it was not possible to secure more than one layer of trust with a single collateral💡

• EigenLayer overcomes the challenge of fractured trust across the Ethereum blockchain👀

Note: Content is taken from coinmarketcap research report👍

#eigenlayer #eigen #restaking #ethereum

[calvin]

Thanks for sharing this! Big fan of CoinMarketCap’s research.

[0xAsharib]

Thanks Buddy, Keep Building

[kuser]

Hello, do I understand correctly that this concept of creating a high level of trust is more needed for oracle applications?

[sam.omw1]

hey @kuser

indeed, it’s very hard to create an oracle today because you have to start building your own trust network.

oracle is an example of a service that can be built on eigenlayer and so yeah you dont have to worry about chainlink that already has high economic security (and even more recently with around 200M at stake) because you have theoretically 25B available at stake on ethereum.

[RamanSB]

Can you provide an example use-case please, say for example someone has stETH from staking their ETH on LIDO and they get stETH in return for their ETH. I believe they cannot withdraw this until the Shanghai upgrade is done… Where does Eignlayer fit in to all of this?

[sam.omw1]

hey @RamanSB

eigenlayer should be live a few months after shanghai upgrade so no need to worry about that :)

[sasparatan]

What are the risks associated with this method?
Will the risk double or more in critical circumstances?

[wancz1997]

I am waiting fro the testnet. It is geat to add income fo stake eth

[0xAsharib]

I think, you should to read the official Whitepaper of EigenLayer, for better understanding

[ThePhunkyOne]

Thanks for the simple explanation! Looks like I’m going to have to read the whitepaper next to gain that deeper understanding

Right before I met Sreeram at ETH Denver, some guy came up with a printed version of the whitepaper and begged him to sign it (he did)

[0xAsharib]

Well, Thanks for your time

[Did.it]

Simple but have a quite futuristic concept.
Eigen Layer would be a big boy when these approach are become the model.

[0xAsharib]

They’re revolutionizing the Crypto space like never before!

[0xAsharib]

You can read the discussion forum here to finding the answer of your question!

[crazymoney]

thank you bro. it is very helpful

[0xAsharib]

Have a good day, Keep understanding the EigenLayer

[CheCoinMaxi]

Whitepaper is quite interesting. I had this “WOW” effect while reading it, that’s a good sign ! Ideas have no value without a proper execution, but Eigen Layer could change a lot of things in this ecosystem

[0xAsharib]

Ofcouse, They’re building just because they want to (Unleash the real power of Ethereum).

[bartezz19]

Thank you for sharing this informative post about EigenLayer! It is fascinating to learn about the innovative mechanisms that are being developed in the world of blockchain and crypto-economics. Your summary of EigenLayer’s benefits and features is clear and concise, making it easy for readers to understand the value that this marketplace provides. Keep up the great work in sharing valuable insights about the latest developments in this exciting field!