EigenLayer, an Ethereum restaking protocol with over $13 billion in assets, has officially launched on the blockchain’s mainnet. However, there are still some key features that are yet to be implemented and will go live sometime in 2024.
In an announcement made on April 9, EigenLayer stated that in-protocol payments to operators from actively validated services (AVS), such as apps and cross-chain bridges, are still to come. Additionally, a mechanism called “slashing,” which involves validators having their staked crypto taken away if they fail to perform their duties correctly, is also on its way.
Both of these features are expected to be introduced later in the year, once the EigenLayer marketplace has had time to develop and stabilize. However, the protocol did not disclose a specific timeline for their release.
As of now, users can delegate their restaked ETH balance to EigenLayer operators, who will then operate AVS. However, there are currently no restaking rewards available, which has raised questions from industry experts.
Restaking protocols like EigenLayer aim to allow users to earn rewards for restaking their already-staked Ether (ETH) tokens, which are representative tokens tied to ETH staked in protocols like Lido or Rocket Pool. While restaking can increase earnings, analysts from Coinbase have warned that it can also compound risks, as funds could be moved around to multiple protocols, potentially creating security and financial issues.
In addition to its mainnet launch, EigenLayer has also introduced a data availability service called EigenDA, which is the first AVS to launch on the protocol. This service aims to assist other blockchain apps in storing transaction data. However, other AVS will need to register with EigenLayer and cannot currently be fully deployed.
There has been some skepticism regarding the significance of EigenDA, with Galaxy Digital’s Christine Kim stating that the success of restaking protocols largely depends on the economics and the balance between risk and reward. As of now, there is no risk (slashing) or reward (AVS payouts) live on EigenLayer, so restaking is not yet fully operational.
EigenLayer currently has a total value locked of $13.33 billion, making it the second-largest decentralized finance protocol behind Lido.