EigenLayer introduces “restaking” to the Ethereum ecosystem, allowing ETH stakers to repurpose their staked capital.
EigenLayer aims to eliminate a critical barrier many new DApps face by providing developers with an established security framework.
Staking involves locking one’s cryptocurrency in a staking pool, exchange or smart contract. A user earns interest on their staked assets, and in turn, the network utilizes these assets to cultivate network security. The more funds a user stakes, the more passive income they make.who participate in transaction validation and vote on upcoming or existing proposals to improve the network. The idea is that stakers are moreand less likely to become bad actors.
Restaking, in the case of EigenLayer, is the act of taking staked Ethereum and repurposing it to increase security on other protocols — essentially creating a pool of restaked assets from which otherWhen a user stakes funds on an Ethereum protocol, most projects offer liquid staking tokens to represent those staked assets — a sort of receipt.
That said, AVSs aren’t randomly harnessing services from EigenLayer. Instead, there’s an intermediary called a node operator, a volunteer opting to help manage the network. Much like an Ethereum validator, an operator can be a single user or an organization. A restaker manages their restaked assets through an EigenPod, a smart contract created during the restaker’s initial restaking process. An EigenPod is essentially a hub for the restaker to manage restaking processes, withdrawals and more. There can only be one EigenPod per Ethereum wallet address.
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