Overview
EigenLayer is a restaking protocol on Ethereum that allows staked ETH to secure additional services, creating a marketplace for decentralized trust. Launched in June 2023, it introduced the concept of restaking: validators can opt their staked ETH or liquid staking tokens into securing Actively Validated Services (AVSs). Its native token is EIGEN.
How It Works
Validators and stakers deposit ETH or liquid staking derivatives into EigenLayer, and operators use that restaked capital to run services such as bridges, oracles, or data availability layers. Each AVS defines its own slashing rules, so misbehavior by operators can result in penalties on the restaked funds. In exchange, restakers earn rewards from the services they help secure, creating an open market for security.
Why It Matters
EigenLayer created a new category in Web3: renting Ethereum's economic security to bootstrap protocols that previously had to grow their own validator sets. It has driven significant growth in restaking and liquid restaking tokens. Its systemic risk is the shared-security model, where many services depend on the same pool of capital, and the complexity of new slashing conditions.
Related Concepts
EigenLayer is the origin of the Restaking economy and Actively Validated Services (AVS). It builds on Liquid Staking and Validators, and its security model touches Slashing and the Modular Blockchain stack.