EigenLayer (EIGEN)

EigenLayer is a platform to leverage Ethereum security through restaking. EigenDA is a data availability service on EigenLayer, designed for Optimistic and ZK rollups.

Basics

• Based in: Seattle
• Started in / Announced on:
• Testnet release: 6-4-2023
• Mainnet release:

History

• From their About page (25-4-2023):

"Our founder, Sreeram Kannan, was a professor at the University of Washington, and the Head of the UW Blockchain Lab. The first members of our team came out of that lab."

Audits & Exploits

• Bug bounty program can be found [insert here].
• "The EigenLayer contracts are under active audits, and a bug bounty program will be launched after audit completion." (6-4-2023)

Governance

Admin Keys

• From their testnet blog (6-4-2023):

"The EigenLayer contracts have two different multisigs: a team multisig, which controls limited functionality, such as pausing and adding new restakable tokens; and a community multisig, which controls upgradability. For this testnet, both these multisigs are handled by the early builders of the EigenLayer protocol."

Technology

• Whitepaper or docs can be found here .
• Code can be viewed here.
• Built on Ethereum

How it works

• From this thread (6-11-2022):

"Eigenlayer is a protocol that modifies Ethereum at the base client layer in order to allow validators to rehypothecate their ETH stake to validate other protocols simultaneously in parallel. What this means is that you can re-use your staked ETH that is already being used to secure Ethereum to validate other protocols such as oracles and data availability modules. Each application will be able to define the criteria that would allow a validator to be slashed.

Imagine you run an Ethereum validator with 32 ETH Staked. In the future you will be able to browse a variety of applications in a sort of “app store”. You will be able to see who is building the app, how many people are running it, what the conditions for potential slashing are, and what compensation you will receive for running the application. Then you can perform a risk/reward analysis and decide if it makes sense to run the application, and seamlessly run multiple applications in parallel.

1. Bridges are a good use case for Eigenlayer, depending on their design.
2. An important use case will be running rollup sequencers on Eigenlayer.
3. Eigenlayer will enable truly decentralized RPC nodes.
4. App chain deployment protocols like @atlas_zk and @0xStacked will be able to use Eigenlayer behind the scenes to bootstrap security for new appchains, with value accrual returning to ETH as the base security collateral
5. Oracles are a good fit for Eigenlayer because they are secured by the value of a token, ie LINK. By securing an oracle network with a larger amount of collateral, oracles can gain a 10x in security, reducing the likelihood of a profitable oracle attack on DeFi."

Their Other Projects

EigenDA

• From this thread (6-11-2022):

"One of the flagship products of Eigenlayer is a Data Availability module that is being built in-house. The idea is to separate execution and settlement layers from data and consensus, so you can run execution layers like @fuellabs_

By removing consensus, EigenDA will have some specialized use cases - in particular, it will be suited for posting rollup attestations, enabling decentralized rollup sequencers."

EigenSettlement

• From this thread (6-11-2022):

"Settlement layers are extremely important for the modular blockchain ecosystem to work. They can, among other things, allow different execution environments to settle to the same layer. The interoperability and shared liquidity effects from this are massively important in order to avoid fragmentation in a modular ecosystem. This is another piece to making fully decentralized rollup sequencers, as the settlement layer is where dispute resolution takes place."

Roadmap

• Can be found [Insert link here].

Usage

Projects that use or built on it

• From this thread (6-11-2022):

"Eigenlayer is built on Go, and there will likely be a smart contract component to define slashing criteria. Currently it is not possible to build on Eigenlayer however there will likely be more docs and information released over time."

Competition

• From this thread (6-11-2022):

"EigenDA has an obvious advantage over Celestia - it is able to bootstrap a large validator network more easily by utilizing existing ETH validators and stake. Unlike Celestia, EigenDA is not a consensus layer, so it will be lower cost and higher throughput."

Pros and Cons

Cons

• From this thread (6-11-2022):

"Security is a serious concern for a validator running Eigenlayer. An application could potentially steal your stake if there is a security flaw. It will be possible in the future to create insurance markets to allow validators to purchase protection.

The best use cases for Eigenlayer are protocols that have a low chance of being slashed. For instance, protocols with liveness guarantees are not a good fit for Eigenlayer, because there is always a high chance that a server could crash and staked could be slashed."

Team, Funding and Partners

Team

• LayrLabs
• Full team can be found here (25-4-2023).
• From this thread (6-11-2022):

"@sreeramkannan, the founder, is the director of the University of Washington (UW) blockchain lab. @cjliu49 , the chief strategy officer, was previously the strategy lead at Compound. The rest of the team is mainly gigabrain Go developers and researchers from UW."

Funding

• From their Twitter (28-3-2023):

"Raised $50 million in a Series A round led by @blockchaincap. Other firms in the round: @ElectricCapital, @polychaincap, @hack_vc, @FinalityCap, @cbventures among others.

Previously EigenLabs raised $14.5 million in a seed round led by @polychaincap + @etherealvc, with @FigmentCapital, @daofive, @robotventures, @P2Pvalidator among others.

We're grateful also to our angel investors, who represent a broad swathe of the crypto ecosystem including stakers, validators, developers, and researchers: @sassal0x @ViktorBunin @StakeETH @MaraSchmiedt @TimBeiko @JoeLallouz @jon_charb @zmanian @marcbhargava and *many* more!""

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