EigenLayer Unlocks Restaked Security for Decentralized Protocols
Ethereum's shift to proof of stake in September 2022 created a massive pool of economic security, with over 30 million ETH staked by validators who risk losing their deposit if they behave maliciously. However, this security sits idle for other protocols that need decentralized validation.
Enter restaking, a model where new protocols borrow security from Ethereum instead of building it from scratch. EigenLayer formalized this concept and built the infrastructure to enable it.
Restakers deposit their staked ETH or liquid staking tokens into EigenLayer's contracts and delegate it to operators. These operators then opt-in to actively validated services (AVSs) that require decentralized validation, such as data availability layers, oracle networks, cross-chain bridges, keeper networks, and coprocessors.
Each AVS defines its own validation logic, reward structure, and slashing conditions. If an operator fails to meet the requirements of an AVS, their delegated stake can be slashed, providing a strong economic deterrent against malicious behavior.