What is Eigen Layer? In simple terms

šŸŒžGeneral
1

ā€¢ EigenLayer is a marketplace for decentralized trust on the Ethereum blockchainā›“ļø

ā€¢ It allows staked ETH to be rehypothecated, meaning users can stake their ETH to secure Ethereum and stake it elsewhere without unstakingāœØ

ā€¢ This means that protocols can benefit from the security of the Ethereum blockchain, as the staked collateral secures both Ethereum and the protocolšŸ”„

ā€¢ Users benefit from double staking yield, one from Ethereum and one from the additional protocol secured that uses EigenLayer :rocket:

ā€¢ This is a novel mechanism in crypto-economic security that enables securing more than one layer of trust with a single collateralšŸ”

ā€¢ Previously, it was not possible to secure more than one layer of trust with a single collateralšŸ’”

ā€¢ EigenLayer overcomes the challenge of fractured trust across the Ethereum blockchainšŸ‘€

Note: Content is taken from coinmarketcap research reportšŸ‘

#eigenlayer #eigen #restaking #ethereum

FoSdcFnaUAAx_S8_1
FoSdcFnaUAAx_S8_11080Ɨ479 62.6 KB

79 Likes
2

Thanks for sharing this! Big fan of CoinMarketCapā€™s research.

13 Likes
3

Thanks Buddy, Keep Building :sunglasses:

13 Likes
4

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

6 Likes
5

hey @kuser

indeed, itā€™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.

6 Likes
6

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 doneā€¦ Where does Eignlayer fit in to all of this?

1 Like
7

hey @RamanSB

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

2 Likes
8

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

2 Likes
9

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

2 Likes
10

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

3 Likes
12

Thanks for the simple explanation! Looks like Iā€™m going to have to read the whitepaper next to gain that deeper understanding :sweat_smile:

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) :star_struck: :joy:

3 Likes
13

Well, Thanks for your time :stuck_out_tongue_winking_eye: :heart:

1 Like
14

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

3 Likes
15

Hello,
Could someone enlighten me on the specificity of Eigenlayer compared to Celestia ? For an amateur there are lots of concepts coming back between the two (modularity, DAā€¦).

Thanks a lot for your answers

Mathias

2 Likes
16

Theyā€™re revolutionizing the Crypto space like never before! :zap::rocket:

1 Like
17

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

3 Likes
18

thank you bro. it is very helpful

3 Likes
19

Have a good day, Keep understanding the EigenLayer :zap::heart:

2 Likes
21

Whitepaper is quite interesting. I had this ā€œWOWā€ effect while reading it, thatā€™s a good sign ! Ideas have no value without a proper execution, but Eigen Layer could change a lot of things in this ecosystem

3 Likes
23

Ofcouse, Theyā€™re building just because they want to (Unleash the real power of Ethereum).

3 Likes