What is Eigen Layer? In simple terms

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Thank you Team for sharing :slightly_smiling_face:

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Ask your questions pls

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Thanks mate , :heart: Eigen Layer is bullish

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Always bullish on web3 bro

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Nice write up ser
Really educational

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Double staking yield. Amazing returns!!

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That,s a Really fantastic & Amazing project. I am Very happy to become a part of this event.Thanks

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Yes a good job thank you sir

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all support to eigenlayer

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yes bro keep it up me and you

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I have a few questions -

  1. Lets say a staker stakes his 2 stETH on Eigenlayer and then choses to provide the security to AVS, how does the AVS actually get the security? Is there a validator that takes part in some process for the AVS? What does it mean by getting secured by stETH or ETH for that matter

  2. In the case of Lido stETH, lets say there is 300 stETH deposited by varied depositors, does Lido allocate 300 ETH worth of validators and do they actually do something for Eigenlayer and AVS?

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Hi,

Thanks for the very clear introduction.

I have a question: as far as I understand, it’s possible for any AVS to create a LST based on its services. Is there any mechanism that could prevent users from taking high leverage using this system ? For instance, could AVS be required to not issue LSTs to operate ?

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In ELI5 terms, EigenLayer allows staked ETH to be rehypothecated , meaning you can stake ETH to secure Ethereum and stake it elsewhere (without unstaking). Protocols benefit from the security of the Ethereum blockchain because the staked collateral secures Ethereum and the protocol. The user benefits from double staking yield, one from Ethereum and one from the additional protocol secured.

This is one of the best simplified explanations of Eigenlayer that I have yet seen.

Ethereum’s introduction of smart contracts revolutionized the blockchain space, bringing unprecedented development and innovation. Scalability issues and network congestion abound, exemplified by events like the CryptoKitties craze and numerous ICOs. Layer 2 solutions were necessary, but as elsewhere noted, they still operate within the limitations of Ethereum’s infrastructure.

Also, the point (as stated by OP @0xAsharib ) about avoiding the creation of unnecessary Layer 1 or Layer 2 chains is compelling. Eigenlayer has the potential to reduce chain pollution in web3 by obviating the need for creating new chains by 1) using existing ETH security - which is time-honored and proven at this point, 2) reducing the need for separate staking on separate services, and 3) sharing existing infrastructure instead of rebuilding the wheel.

It’ll be exciting to see how Eigenlayer continues to evolve as modularity and chain abstraction become the two prevailing themes of the day in the coming year / year and a half (web3 moves fast XD ).

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EigenLayer is not just revolutionizing the Blockchain space at all, the possibilities are endless :man_technologist:

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thanks for sharing that knowlage

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In short,EigenLayer enables re-stakers to participate in validating different networks and services through a smart contract system, saving costs for third-party protocols while enjoying Ethereum security. It provides re-stakers with multiple rewards and flexibility.

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