Ethereum restaking protocol Eigen Layer launches on testnet
Eigen Layer is a new protocol that enables Ethereum restaking protocol Eigen Layer launches on testnet. It’s main net launch of the protocol is expected in Q3 and will be rolling in three stages to onboard participants into the ecosystem. The first stage will use Ethereum’s Goerli testing network.
- Series A funding round of $50 million for EigenLayer
The protocol has announced $50 million in Series A Funding. It is led by crypto venture firm Blockchain Capital, alongside other investors such as Coinbase Venture, Ploy chain Capital, Electric Capital, and Finality Capital Partner.
- EigenLayer addresses issues with validator economic incentives
It focuses on becoming a decentralized marketplace for Ethereum node operators and validators to get fees. As a result, they can retake assets they received for staking Ether on platforms like Lido and Rocket Pool. It can reuse to validate and secure other networks, such as sidechains or non-EVM blockchains.
- Facilitating re-staking of ETH onto other networks
EigenLayer founder Sreeram Kannan believes in promoting the moving and restaking. Therefore, Ethereum restaking protocol EigenLayer launches on testnet. Other networks would reward stakers and validators with additional yields, allowing smaller networks to grow securely. The protocol also aims to address issues with validator economic incentives.
- The launch of EigenLayer on testnet provides a significant opportunity
In late March, Ethereum co-founder Joseph Lubin Praised EigenLayer. He says the group is at the forefront of some of the most exciting work in Ethereum. However, it’s worth nothing that Lubin’s Ethereum Ventures fund has invested in EigenLayer.
According to the Ultrasound Money tracker, 17.9 million ETH are currently held on the Beacon Chain. It is valued at around $33.6 billion, representing almost 15% of the Ethereum supply.
- EigenLayer has the potential to become a decentralized marketplace
Eigen Layer’s protocol provides a new paradigm for fostering protocol-centric innovation. It can through a programmatic decentralized trust marketplace.
Additionally, the protocol plans to enable restaking for ETH withdrawals from the Beacon Chain. Validators on the Ethereum blockchain can tie their beacon chain withdrawal credentials to EigenLayer contacts and opt-in to new modules built on EigenLayer.
In conclusion, Ethereum restaking protocol Eigen Layer launches on testnet provides a significant opportunity for Ethereum validators and stakers to securely re-stake their assets onto emerging networks.
With the banking of top investors and Ethereum co-founder Joseph Lubin, EigenLayer has the potential to become a decentralized marketplace for Ethereum mode operators and validators to get fees on additional services.
The protocol also aims to address issues with validators’ economic incentives. It could further incentivize validators and stakers to participate in the ecosystem.