What is EigenLayer?
EigenLayer is a restaking protocol on Ethereum that allows staked ETH to be used as security for additional protocols and services called AVSs (Actively Validated Services). This extends Ethereum's security to new applications.
Restaking lets ETH stakers opt-in to securing additional protocols like data availability layers, bridges, oracles, and sequencers, earning additional rewards beyond standard ETH staking yields.
EIGEN is the governance and slashing token for the EigenLayer protocol. It introduces a novel 'intersubjective' slashing mechanism that can penalize malicious behavior across AVSs.
EIGEN Tokenomics
EIGEN has a total supply of 1.67 billion tokens. A significant portion was distributed via 'stakedrop' to restakers and the broader Ethereum community. The token is used for governance and as a slashing collateral layer.
EIGEN Historical Price Performance
EIGEN became transferable in October 2024 after months of non-transferable distribution. It reached $5.65 at launch. EigenLayer attracted over $15 billion in restaked ETH at peak, making it the largest DeFi protocol by TVL.
Frequently Asked Questions
Restaking allows already-staked ETH to provide security for additional protocols. Instead of each new protocol bootstrapping its own validator set, they can leverage Ethereum's existing stakers.
Actively Validated Services are protocols that use EigenLayer's restaked ETH for security. Examples include EigenDA (data availability), bridges, oracles, and sequencer networks.
EIGEN introduces a novel slashing mechanism where disputes about AVS behavior are resolved through social consensus. EIGEN can be forked if disagreements arise about slashing decisions.
Restakers earn standard ETH staking rewards plus additional rewards from each AVS they opt into securing. Rewards vary by AVS and typically include the AVS's native token plus protocol fees.
What is restaking?
Restaking allows already-staked ETH to provide security for additional protocols. Instead of each new protocol bootstrapping its own validator set, they can leverage Ethereum's existing stakers.
What are AVSs?
Actively Validated Services are protocols that use EigenLayer's restaked ETH for security. Examples include EigenDA (data availability), bridges, oracles, and sequencer networks.
What is intersubjective slashing?
EIGEN introduces a novel slashing mechanism where disputes about AVS behavior are resolved through social consensus. EIGEN can be forked if disagreements arise about slashing decisions.
How do restakers earn?
Restakers earn standard ETH staking rewards plus additional rewards from each AVS they opt into securing. Rewards vary by AVS and typically include the AVS's native token plus protocol fees.
Risk Warning
Cryptocurrency prices are highly volatile and can change rapidly. The information on this site is provided for informational purposes only and does not constitute financial, investment, or trading advice.