Despite scalability and high gas fees facing Ethereum, the founder of EigenLayer, a liquidity restaking platform, insists the network is superior, especially against Solana. Solana is the third most valuable smart contracts platform, trailing Ethereum and the BNB Chain. Over the years since launching, it has been gulping up more market share from Ethereum, cementing its position. Is Ethereum Superior To Solana? While the prominence of Solana is evident, Sreeram Kannan, the founder of EigenLayer, argued in a post on X that Solana prioritizes low latency and global node synchronization over other core features. Related Reading: Solana (SOL) ‘Could Go Parabolic’ Once It Breaks $200 Resistance – Analyst On the other hand, Ethereum took a different approach, emphasizing the need for stability and decentralization. Accordingly, in Kannan’s view, the first smart contracts platform offers a more comprehensive solution than its competitor. Currently, EigenLayer manages over $12 billion worth of assets on Ethereum, according to DeFiLlama. Although Kannan acknowledges the efficiency of Solana, the founder nonetheless picks out some limitations now that the platform is building a global state machine. At the top of the list is the blockchain’s sacrifice of programmability and verifiability. Meanwhile, the EigenLayer lead thinks Ethereum is excelling, especially on performance, thanks in part to the success of rollups and the resulting wild adoption. This off-chain solution provides instant confirmation and is more performant than web2 applications. At the same time, Ethereum is programmable, enabling EigenLayer to add more features like an arbitrary decentralization of verifiable tasks. As a result, the liquidity restaking platform, Kannan adds, has enabled cloud-scale programmability. Layer-2 Platforms Thriving: Why Is ETH Struggling? The co-founder of Celestia, Mustafa Al-Bassam, also appreciates what Ethereum brings to the table and is absent or underdeveloped in other networks. In a post on X, Al-Bassam said the first smart contracts platform is “underrated.” Related Reading: Shiba Inu Burn Rate Skyrockets 81% In One Day, Are The Bulls Back? Specifically, the co-founder lauded the thriving rollup ecosystem in Ethereum, saying it is “by far the largest and most successful.” As of September 30, L2Beat data shows that the layer-2 ecosystem in Ethereum manages over $38 billion, with Arbitrum and Base among the largest platforms. Even as Base and other Ethereum layer-2 platforms draw activity, ETH, the native currency, is struggling for momentum. The daily chart shows bulls have yet to break above $2,800, although support remains at $2,400. Dwindling upside momentum has been partly blamed on the proliferation of layer-2 scaling solutions. The network becomes inflationary as more activity is re-routed off-chain, and enhancements like Dencun are activated to make layer-2 transactions even cheaper. Looking at Ultra Sound Money, fewer ETH are not being torched. Feature image from DALLE, chart from TradingView
Apps will be able to settle directly on Movement’s L2 with fast finality ‘postconfirmations’ secured by stakers, the co-founder said.
Artemiy Parshakov, the head of staking at P2P.org, said that the fierce competition among service providers in staking had driven the adoption of restaking.
Users will be able to earn restaking yield from layer-2 tokens on EigenDA.
Stakers with Lido, Frax, Origin and Mantle can “restake” with the DeFi protocol.
The data availability protocol is also introducing a "free tier."
Eigen Labs circulated a list of team members' wallet addresses to EigenLayer ecosystem projects that were preparing to issue tokens. The firm later banned the practice, citing potential conflicts of interest.
EigenLayer leads the restaking sector with a $12.9 billion TVL, driven by AVS rewards and growing interest in Ethereum-based restaking.
Users can deposit their wBTC to get swBTC in return, with yield expected to start flowing from mid-September – as part of a blockchain "restaking" scheme ultimately designed to secure protocols in the Ethereum blockchain ecosystem.
Restaking yields are still mostly speculative, according to Mike Silagadze speaking at the Blockchain Futurist Conference.
Billions of dollars worth of ether have been withdrawn from restaking protocols over the past month as the once-trendy sector starts to be hit by the fickle nature of crypto investors.
With the incorporation of this security measure, EigenLayer seeks to protect the service it offers while guaranteeing its availability to all clients.
The Eigen Foundation is acquiring Rio Network’s intellectual rights and will open-source its liquid restaking token as a reference implementation in the EigenLayer ecosystem.
Consensys CEO Joe Lubin explains why the firm is taking legal action against the SEC, discusses Ethereum’s roadmap and the importance of Vitalik Buterin's continued involvement.
Executive director Aya Miyaguchi said the foundation’s neutrality can’t depend on culture and individual judgment after researchers take multimillion-dollar roles at EigenLayer.
Restaking protocol EigenLayer has unveiled its highly anticipated airdrop season, during which eligible users can claim a portion of the initial EIGEN token supply. EigenLayer Sets September 2024 Deadline The protocol’s announcement on Friday revealed that “Season 1” commences with 6.05% of the total supply, which users can claim starting on May 10. Moreover, “Season 1 phase 2,” set to begin mid-June, will increase the claimable percentage to 6.75%. Season 1 will distribute approximately 113 million EIGEN tokens to participants. EigenLayer has reserved 15% of the initial token supply for the community across all seasons, signaling its commitment to inclusive participation. Related Reading: XRP All Talk, No Action? Social Media Booms, But Price Stuck In The Bear Pit EigenLayer has also announced that EIGEN tokens are currently non-transferable. However, the protocol plans to unlock token transfers once new features are launched and “further decentralization” is achieved. These developments are expected to take place by September 30th, 2024. Until transfer restrictions are removed, core contributors and investors will not receive EIGEN staking rewards, and no inflation will occur. Record-Breaking $14 Billion In Assets Since its soft launch in 2023, EigenLayer has reportedly attracted $14 billion in assets, making it a prominent player in the decentralized finance (DeFi) space. According to Bloomberg, the protocol’s restaking service offers amplified returns by leveraging the process of depositing ETH coins to support the Ethereum blockchain. Eigen Labs, the Seattle-based firm behind EigenLayer, raised approximately $165 million from notable backers, including a16z Crypto. Investors gain access to EigenDA by staking EIGEN, a performance data availability system supporting Ethereum rollups. The protocol claims this presents an opportunity for users to secure amplified returns. Additionally, EigenLayer will shortly introduce compatibility with various AVSs (Application-Specific Verification Systems), offering stakers more options. Nonetheless, virtual private network users and residents of countries such as the US, Canada, and China have been excluded from the airdrop, highlighting the challenges of operating within regulatory frameworks and ensuring compliance. Eigen Foundation’s executive director, Robert Drost, acknowledged the complexities of navigating regulatory guidelines: It’s not possible to operate in the space without following regulatory guidelines and being responsible, and the challenging part is that there is not a lot of clarity. Related Reading: Crypto Analyst Sets $10 Price Target For Cardano As Volume Jumps 90% Despite these setbacks, EigenLayer’s popularity has positioned it as the second most popular DeFi application, surpassing liquid staking platforms like Lido and Rocket Pool. While liquid staking provides easier access to staking rewards and leads the DeFi category, it has experienced significant outflows in recent months. DefiLlama data indicates a 27% decline in total value locked in liquid staking protocols since their peak of $63 billion in March. EigenLayer’s restaking service has contributed to the restaking of nearly 4% of all ETH. The second largest cryptocurrency on the market, Ethereum, is trading at $2,890, following Bitcoin’s lead with a 3.8% drop in the past 24 hours. Featured image from Shutterstock, chart from TradingView.com
Issues such as community discontent, farm accounts and restrictive criteria have plagued recent airdrops.
Much-hyped restaking project EigenLayer's 43-page whitepaper about its now-revealed EIGEN token has raised lots of questions. They may not matter initially, because much of the promised functionality won't be ready when the token launches.
Restaking has taken hold of the Ethereum ecosystem. With Jito and a handful of other companies building for Solana, can the trend spread?
Ethereum restaking protocol Eigenlayer has promised to allocate 15% of EIGEN supply to the community, but not everyone was happy about it.
EigenLayer, a decentralized restaking protocol built on Ethereum (ETH), has made significant announcements, paving the way for new developments within the crypto ecosystem. The protocol unveiled its native token, EIGEN, which the newly formed Eigen Foundation will distribute. Alongside this, EigenLayer introduced a major plan for an airdrop and released a comprehensive new Whitepaper. EigenLayer Unveils EIGEN With Novel Mechanism According to the protocol’s announcement, the introduction of the EIGEN token brings forth a complementary mechanism designed to address “intersubjective” faults, which cannot be resolved through ETH restaking alone. By expanding ETH restaking, EigenLayer positions ETH as the Universal Objective Work Token, while the universality of EIGEN makes it the Universal Intersubjective Work Token. EIGEN’s universality is reportedly aimed at allowing it to fork and slash for intersubjective errors committed by EIGEN stakers in any AVS (Automated Verification System) within the protocol. To ensure widespread adoption of EIGEN across applications, EigenLayer has designed an application-independent mechanism to maintain the system’s cryptoeconomic security. Related Reading: Ethereum Fees Dive: Will This Spark A Surge In Network Activity? In EigenLayer, EIGEN staking and ETH restaking play complementary roles. EIGEN addresses safety properties through objective slashing, and ETH restaking ensures liveness and censorship-resistance properties dependent on stake decentralization. The launch of EIGEN also introduces intersubjective staking, marking a significant milestone for the protocol and the Ethereum ecosystem. However, due to its newly introduced design, the concept requires widespread adoption and discussion among ecosystem participants. At launch, the Eigen token will have a total supply of 1.67 billion tokens, with the Foundation allocating 45% of the tokens to the community. This allocation is further divided into staked drops, community initiatives, and ecosystem development. Investors will reportedly receive almost 30% of the tokens, while early contributors will receive over 25%. Both these groups are subject to a three-year lockup period for their allocations. A complete lock will be in place during the first year, followed by a gradual release of their total holdings at a rate of 4% per month over the subsequent two years. EIGEN Token Launches Meta-Setup Phase While the initial implementation of intersubjective staking at launch mirrors only a limited extent of the full protocol, several parameters still need to be determined for its full actuation. To address this, EIGEN is being launched in a meta-setup phase, serving as a call to action for researchers, experts, and the broader community to engage in public discourse. As EigenLayer announced, this collaborative effort aims to help define the necessary parameters to make the protocol and its interaction with the rest of the Ethereum ecosystem as effective as possible. Related Reading: Crypto Analyst Says Altcoins Are About To Enter A Parabolic Curve, Here’s Why Featured image from Shutterstock, chart from TradingView.com
Some 45% of the EIGEN token supply will go towards the EigenLayer community, while investors will be allocated 29.5% of the token supply, and 25.5% will go towards early contributors.
Built from EigenLayer, Puffer Finance's TVL has gone over $1.2 billion, a month after its initial testnet phase.
The post Puffer Finance secures $18M in funding as liquid staking market heats up appeared first on Crypto Briefing.
Under its deal with RedStone, Ether.Fi will dedicate $500 million to help secure RedStone's data oracles, which are used to pass information between blockchains and the outside world.
The "restaking" protocol with $15 billion in deposits won't pay rewards to depositors and is missing its mission-critical "slashing" feature.
EigenLayer is live on the Ethereum mainnet, but several crucial features are still on the way — slated for release “later this year.”
Aave is proposing a new framework as it gears up for the DeFi competition, ahead of MakerDAO's upgrade plans this year.
Discover how the FHE coprocessor innovation by Fhenix and EigenLayer is set to revolutionize Ethereum's onchain confidentiality and security.
Restaking has grown into the second-largest DeFi sector on the Ethereum blockchain and is likely to become a core part of the network’s infrastructure, the report said.
EigenLayer is now the second-largest DeFi protocol behind Lido after taking Aave’s spot.