EigenLayer: The Restaking Revolution

Transforming staked ETH into a dynamic, reusable security resource for the entire decentralized ecosystem.

1. What is EigenLayer?

EigenLayer is a protocol built on Ethereum that introduces **restaking**, a cryptographic primitive allowing users who have already staked $\text{ETH}$ or $\text{LSTs}$ (Liquid Staking Tokens like $\text{stETH}$) to **repurpose their capital** to secure *other* decentralized services. It effectively creates a **"marketplace for trust"** where protocols can purchase security, and stakers can earn additional yield.

The Problem: Fragmented Security

Before EigenLayer, every new decentralized service (like a cross-chain bridge or an oracle) had to bootstrap its own security network. This was highly **capital inefficient**, costly, and resulted in many smaller, weaker security layers rather than one unified, strong one. EigenLayer aims to solve this by aggregating the vast economic security of Ethereum and extending it universally.

2. Key Participants in the Ecosystem

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Restaker

A user who locks their staked $\text{ETH}$ or $\text{LSTs}$ into EigenLayer's smart contracts. They agree to subject their stake to **additional slashing conditions**.

Incentive: Earns additional rewards/yield from $\text{AVSs}$.

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Operator

An entity (often delegated by Restakers) that runs the necessary node software to actively perform validation tasks for the chosen $\text{AVS}$.

Incentive: Receives fees from $\text{AVSs}$ for operational services.

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AVS

The protocol (e.g., a data availability layer, bridge, or oracle) that needs cryptoeconomic security for its operations.

Incentive: Gains instant, robust security from Ethereum's massive pool.

3. The Economic Guarantee: Slashing

The high integrity of the system is enforced by the **slashing mechanism**. By restaking, users grant EigenLayer the right to impose penalties on their staked assets if the Operator fails to follow the rules set by the $\text{AVS}$.

**Extended Accountability:** The restaker is financially liable for the Operator's actions on the $\text{AVS}$.
**Malicious Behavior Penalty:** If an Operator performs a malicious act (e.g., cheating an oracle vote or double-signing data), the $\text{AVS}$ can trigger the EigenLayer smart contract to **slash** a portion of the restaker's $\text{ETH}$.
**Trust-Minimized Execution:** This risk-reward dynamic ensures that $\text{AVSs}$ can rely on the economic honesty of Ethereum's stakers, enabling **Cryptoeconomic Security as a Service ($\text{CSaaS}$)**.

4. Impact and Real-World Use Cases

EigenLayer is key to unlocking the **Modularity** future of Ethereum, allowing developers to build sophisticated infrastructure components securely.

EigenDA (Data Availability)

EigenDA is EigenLayer's own high-throughput data availability layer. It allows Layer 2 rollups to post transaction data cheaply while using the security provided by $\text{ETH}$ restakers to verify the data's integrity.

Decentralized Oracles & Bridges

These protocols, traditionally vulnerable to attacks, can utilize EigenLayer's pooled security to gain robust, $\text{ETH}$-backed security guarantees, making their services more reliable for the DeFi ecosystem.