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 April 9 blog post, EigenLayer announced the launch but mentioned that in-protocol payments to operators from actively validated services (AVS), such as apps and cross-chain bridges, are still in development. Additionally, the mechanism of slashing, which involves validators having their staked crypto taken away if they fail to perform their duties correctly, is also on its way.
Both features are expected to be introduced “later this year,” after the EigenLayer marketplace has had time to develop and stabilize. However, the protocol did not provide a specific timeline for their release.
Currently, restakers can delegate their restaked ETH balance to EigenLayer operators, who operate AVS. However, there are no restaking rewards available yet, as pointed out by Christine Kim, the Vice President of Research at Galaxy Digital.
Restaking protocols like EigenLayer offer users the opportunity to earn rewards by restaking their already-staked Ether (ETH) tokens. These tokens represent a 1:1 ratio of ETH staked in a protocol like Lido or Rocket Pool.
Coinbase analysts have noted that while restaking can increase earnings, it can also pose risks, especially when funds are moved across multiple protocols, potentially creating security and financial complexities.
In addition to the mainnet launch, EigenLayer has also introduced a data availability service called EigenDA, which is the first AVS to be launched 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.
Despite the release of EigenDA, Christine Kim expressed skepticism about its significance and emphasized the importance of balancing risk with reward in restaking protocols.
EigenLayer currently has a total value locked of $13.33 billion, according to DefiLlama. It surpassed Aave in early March to become the second-largest decentralized finance protocol, trailing behind Lido with $33 billion in locked value.
In conclusion, the launch of EigenLayer’s restaking protocol on Ethereum’s mainnet brings both excitement and anticipation for the upcoming features. However, there are still aspects that need to be developed and stabilized before restakers can fully benefit from the rewards.