Re-staking Protocol EigenLayer to Adopt Shared Security System
EigenLayer, a re-staking protocol, is planning to implement a “shared security” mechanism that allows protocols to join the network by utilizing a common pool of ETH stakes. The protocol enables users to deposit and re-stake ether from different liquid staking tokens to secure third-party networks. It was launched on the Ethereum mainnet in June 2023.
In the future, EigenLayer aims to transform into a major decentralized application platform and facilitate the launch of other projects by leveraging shared security. This version will supply the amount of ETH re-staked on EigenLayer, currently over $1.7 billion, to all services developed on the network simultaneously, creating a common security mechanism.
The implementation of shared security enhances security by pooling resources and making it economically unviable for attackers to target any specific protocol. Projects like Polkadot have previously introduced similar shared security models, although their mechanisms differ significantly.
EigenLayer and Re-staking Services
EigenLayer also allows ETH stakers to subject their ETH to additional slashing risk in order to secure Ethereum ecosystem services. In return, these stakers can earn yield from those services. Projects built on top of EigenLayer can purchase insurance for a portion of the network stake as a safety net in case the network fails to secure the project. The insurance payouts would come from staked ETH that may be slashed if those stakes are removed.
EigenLabs, the team behind EigenLayer, recently closed a $50 million Series A funding round led by Blockchain Capital. The total value locked in EigenLayer’s smart contracts has reached $1.7 billion.
Hot Take: EigenLayer Revolutionizing Security through Shared Stakes
By adopting a shared security system, EigenLayer is revolutionizing the way protocols join networks and enhancing overall security. The pooling of ETH stakes from re-staking creates a common security mechanism that makes it economically impractical for attackers to target individual protocols. This approach, similar to models introduced by projects like Polkadot, ensures a robust and hardened security infrastructure.
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