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EigenLayer

Type: Restaking Protocol

EigenLayer is a restaking protocol on Ethereum that allows staked ETH to secure additional services (Actively Validated Services, or AVSs) beyond Ethereum consensus — extending cryptoeconomic security to oracles, bridges, sequencers, data availability layers, and MEV infrastructure.

Market Microstructure Analysis​

EigenLayer introduces restaking: a staker who has already staked ETH to secure Ethereum can re-use that stake to secure additional AVSs, earning extra yield but accepting additional slashing conditions. For AVS developers, this solves the cold start problem of bootstrapping a validator set for a new decentralized network — they can inherit Ethereum's ~$100B+ security budget instead of launching a new token with low initial value and insecure consensus. For the Ethereum protocol, restaking creates a new risk vector: slashing on an AVS could cascade to Ethereum if improperly designed, potentially undermining Ethereum's own consensus security. The magnitude of this risk depends on AVS slashing design, correlation of slashing events across AVSs, and the fraction of ETH restaked. EigenLayer has spawned a liquid restaking ecosystem (LRT protocols like Ether.fi, Renzo, Puffer) that manage restaking positions on behalf of users, issuing liquid tokens that can be used in DeFi. The intersection of restaking and MEV arises when AVSs provide MEV-related services — for example, a decentralized block builder AVS or a cross-chain proposer commitment AVS — where restaked ETH provides the economic security for honest MEV infrastructure operation.

Key Innovations​

  • Restaking: reuse ETH stake to secure additional services beyond Ethereum
  • AVS marketplace: permissionless launch of services inheriting Ethereum security
  • Liquid restaking tokens (LRTs): composable DeFi integration for restaked positions
  • Cold start solution: new networks can inherit $100B+ security budget