May 23, 2024
Altcoins News

EigenLayer Restaking Protocol Launches on Mainnet

EigenLayer, a prominent Ethereum restaking protocol boasting over $13 billion in assets, has made its debut on the blockchain’s mainnet.

However, while the launch marks a significant milestone, crucial features are still pending, set to roll out later in 2024.

Features Awaited

EigenLayer unveiled its mainnet launch through an April 9 blog post, highlighting the protocol’s entry into the operational phase.

Nonetheless, it disclosed that certain essential functionalities, including in-protocol payments to operators from actively validated services (AVS) and the implementation of slashing mechanisms, are yet to be integrated.

The protocol emphasized that these features are slated for release “later this year,” after allowing sufficient time for the EigenLayer marketplace to develop and stabilize. However, no specific timeline was disclosed.

Challenges and Expectations

Despite the anticipation surrounding EigenLayer’s launch, questions loom regarding the absence of restaking rewards. Christine Kim, Vice President of Research at Galaxy Digital, raised pertinent inquiries, underlining the significance of rewards in restaking protocols.

Restaking protocols like EigenLayer hold the promise of enabling users to earn rewards by restaking their already-staked Ether tokens.

However, concerns persist regarding the associated risks, as highlighted by analysts from Coinbase, who cautioned about the potential complexities arising from fund migration across multiple protocols.

Additional Offerings

In conjunction with its mainnet launch, EigenLayer introduced EigenDA, a data availability service designed to assist blockchain applications in storing transaction data.

While EigenDA marks a significant addition to the protocol, other AVS are currently restricted from full deployment until registration with EigenLayer is complete.

Financial Dominance

EigenLayer has rapidly emerged as a dominant force in the decentralized finance (DeFi) space, boasting a staggering total value locked of $13.33 billion, according to DefiLlama. Surpassing Aave in March, EigenLayer now stands as the second-largest DeFi protocol, trailing behind Lido with $33 billion in locked value.

EigenLayer’s total value measured in U.S. dollar terms since its inception. Source: DefiLlama

As EigenLayer continues to evolve and introduce anticipated features, the DeFi community eagerly awaits the realization of its full potential, anticipating a paradigm shift in Ethereum staking and decentralized finance as a whole.

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