Ethereum ‘re-staking’ protocol EigenLayer launches on testnet
A new protocol that allows Ethereum validators and stakers to “re-stake” their assets onto other emerging networks has just launched on testnet.
The mainnet launch of the EigenLayer protocol is not expected until Q3 however, and testing will be phased in three stages to onboard various participants into the ecosystem. The first stage is using Ethereum’s Goerli testing network.
The project has some serious backing and announced $50 million in a Series A funding round in late March led by crypto venture firm Blockchain Capital, along with Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partner.
EigenLayer aims to become a decentralized marketplace for Ethereum node operators and validators to earn fees on additional services. It allows them to restake assets they received in exchange for staking Ether on platforms such as Lido (stETH) and RocketPool (rETH). The assets can be reused to validate and secure other networks such as side-chains or non-EVM blockchains.
According to the whitepaper, EigenLayer also has plans to enable restaking for ETH withdrawn from the beacon chain following the Shapella upgrade.
The protocol aims to address issues with validator economic incentives. EigenLayer founder Sreeram Kannan said that facilitating the moving and re-staking of ETH onto other networks, would incentivize validators and stakers with additional yields, and allow smaller networks to grow securely.
We are excited to announce the release of the testnet for the first stage of the EigenLayer protocol, which supports liquid and native restaking.Please read the full details here: https://t.co/1eoriZOcwo1/8 pic.twitter.com/xLs3CC2EOK
In late March, Ethereum co-founder Joseph Lubin said "The Eigen Labs team is
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