EigenLayer, a popular Ethereum restaking protocol with over $13 billion in assets, has officially launched on the blockchain’s mainnet. However, there are still some key features that are yet to be implemented and will go live in 2024.
EigenLayer made the announcement in a blog post on April 9th, stating that in-protocol payments to operators from actively validated services (AVS), such as apps and cross-chain bridges, are still to come. Additionally, the mechanism of slashing, which involves taking staked crypto from validators who fail to perform their duties correctly, is also in development.
The protocol mentioned that these features will be introduced “later this year” after the EigenLayer marketplace has had time to develop and stabilize. However, no specific timeline was provided.
With the launch of EigenLayer’s mainnet, users can now delegate their restaked ETH balance to EigenLayer operators, who will operate AVS. However, there are currently no restaking rewards offered.
Christine Kim, Vice President of Research at Galaxy Digital, questioned the absence of restaking rewards in a response post, highlighting the importance of economic factors in restaking protocols.
Restaking protocols like EigenLayer aim to allow users to earn rewards by restaking their already-staked ETH tokens. This involves tokens that represent the staked ETH in protocols like Lido or Rocket Pool. However, Coinbase analysts caution that restaking can increase earnings but also compound risks, as funds can be moved between multiple protocols, potentially creating security and financial complexities.
In addition to the mainnet launch, EigenLayer has also introduced EigenDA, a data availability service that aims to assist other blockchain apps in storing transaction data. However, other AVS will need to register with EigenLayer and cannot currently be fully deployed.
Galaxy’s Kim expressed skepticism about the hype surrounding EigenDA, stating that the success of restaking largely depends on finding the right balance between risk and reward.
EigenLayer currently has a total value locked of $13.33 billion, making it the second-largest decentralized finance protocol behind Lido. Its value locked in USD terms has been steadily increasing since its launch.
Overall, the launch of EigenLayer on the Ethereum mainnet brings new opportunities for restaking, but the protocol still has important features to implement before it can fully deliver on its promises.