EigenLayer's Restaking Model Revolutionizes Decentralized Security
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.
This security pool protects Ethereum but sits idle for other protocols. Restaking proposes a different model, where new protocols borrow security from Ethereum instead of building it independently.
EigenLayer formalized this concept and built the infrastructure for restaking. The process works by having users deposit their staked ETH or liquid staking tokens into EigenLayer's contracts and delegate to an operator.
The operator then opts into one or more actively validated services (AVSs), which are protocols that need decentralized validation. These AVSs define their own validation logic, reward structure, and slashing conditions. If the operator violates these rules, the delegated stake can be slashed.