EigenLayer, introduced on the mainnet in June 2023, comprises a set of smart contracts operating on the Ethereum blockchain. These contracts enable Ethereum (ETH) stakers to validate additional projects using their staked $ETH, known as ‘restaking.’
Currently, over 28 million ETH are staked to support the validation of Ethereum, rendering the blockchain highly secure in terms of crypto-economics. EigenLayer aims to leverage this robust security infrastructure by enabling various projects such as consensus networks, data availability (DA) layers, oracle networks, and more to utilize Ethereum’s extensive security measures, thus getting rid of the need to establish their own chain infrastructure.
How EigenLayer Works
The core principle of EigenLayer revolves around pooled security through restaking, wherein multiple entities join forces by pooling their staked ETH to enhance security. This pooling mechanism operates through two methods:
- Native restaking
- Liquid restaking
Native restaking, designed for experienced users, involves managing your own Ethereum validator and depositing standard ETH into a designated entity known as an ‘EigenPod.’
In contrast, liquid restaking offers a simpler approach, as it involves depositing liquid staking tokens (LST) such as Coinbase cbETH, Rocket Pool rETH, or Lido stETH directly into EigenLayer.
As envisioned, EigenLayer is set to operate as a restaking marketplace, providing depositors with the freedom to select the projects or modules they want to support. This model empowers restakers to make choices aligned with their interests, risk tolerances, and anticipated rewards.
At the time of writing, EigenLayer had facilitated the restaking of over 4.5 million ETH, equivalent to approximately $14.9 billion. Among this total, $9.5 billion originated from native restaking, while the rest was contributed through liquid restaking.
How to Restake on EigenLayer
At the time of writing, native restaking deposits were unrestricted on EigenLayer, allowing for unlimited contributions. Meanwhile, liquid restaking deposits were temporarily halted, pending a complete public launch in the near future.
However, once deposits are fully open, which you can confirm here, the process for participation is straightforward. When the system is operational, you can follow these steps:
1.) Prep your LST of choice — EigenLayer currently supports cbETH, rETH, stETH, just to name a few. Acquire some of your preferred LST if you haven’t already, and transfer the token into your desired wallet before proceeding.
Supported Liquid Staking Providers
2.) Visit the EigenLayer app — Go to app.eigenlayer.xyz and connect your wallet, then click on the asset you’d like to start restaking with to continue.
3.) Complete your deposit — In the provided interface, input the amount you’d like to deposit into EigenLayer, then complete the approval transaction + the final authorization transaction with your wallet to officially start restaking.
After entering, you can monitor all your deposits directly from the main EigenLayer app page. Additionally, you can withdraw at your discretion using the ‘Unstake‘ button within the deposit interfaces.
However, it’s important to note that EigenLayer currently implements a 7-day withdrawal delay, meaning it will take a week for your funds to be available in your wallet.
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