Risk: Logical and profitable challenges of safe sharing
Essentially In general, the Eigenlayer project is the matryoshka doll project of the Ethereum ecosystem. Assuming that according to this safe sharing logic, theoretically unlimited matryoshka dolls can be created. It has a highly similar structure to the root cause of the 2008 subprime mortgage crisis. This is also an important reason why Buterin is worried about the risk of re-pledge. In other words, the re-pledge protocol relies on the underlying consensus of Ethereum in the event of major losses. This impact will be transmitted to the layer 1 network, thus triggering a normative conflict in the layer 1 network itself. , which is the so-called "consensus overload" problem. In the words of the financial world, excessive leverage on the consensus itself may lead to the collapse of the consensus itself.
Eigenlayer’s matryoshka properties cannot be denied, but on the basis of limited matryoshkas, this is indeed not only a way to improve the efficiency of asset operation on Ethereum , and also moderately extends the security consensus on the Ethereum main chain, which is indeed very conducive to the prosperity of the Ethereum ecosystem itself. In terms of the nature of the project, it provides SaaS services, although some people call it RaaS. If we look forward to the future of the encryption world, one obvious trend is that public chain competition has entered the Spring and Autumn Period and the Warring States Period. Multiple chains are shining, Daaps are emerging one after another, and the few high-level security consensuses in the encryption world have become popular. This is the stage for projects like Eigenlayer. From this perspective, its positive significance outweighs the potential dangers.
From a risk perspective, the biggest potential risk of the Eigenlayer project is the logical difficulty of the concept of safe sharing itself. Those who have the ability to ensure security do not need to share. Anything that needs to be shared is extremely unsafe and may lead to thunderstorms. Therefore, from a business model perspective, Eigenlayer still has a long way to go, especially for re-stakers. Without high returns or airdrops, it is basically impossible to engage in re-staking. Will it be able to make stable profits in the future? There is a question mark, but at least in the short term, with the support of top investment institutions and concepts, there is no problem with market value expectations. In the long run, Eigenlayer's model is likely to work, especially in a world where modularity is becoming increasingly popular. This fast, convenient, and low-cost deployment method is a very imaginative narrative.
How to play: List of potential projects
1) Re-pledging Project
●Eigenlayer Pledge:
Official website ：https://app.eigenlayer.xyz/
Specific method: Currently, 9 types of LRT are provided, among which LIDO's stETH and Swell's swETH have larger TVLs, and you need to wait for 7 days to withdraw. In addition, native staking is also provided. As mentioned above, this is aimed at large users with Ethereum verification nodes and is not suitable for ordinary players.
Income: In addition to re-staking income, you can also get points, and the number of points may be the basis for subsequent airdrops. The calculation of points not only depends on the amount of pledge, but also the time. The example given on the official website is: if a user pledges 1stETH for 10 days, he can get 240 points. The calculation formula is: 1 ETH × × 10 days × 24 hours/day.
●swell networkPledge:
Official website: https://app.swellnetwork.io
Project gameplay: One is swETH Liquid Staking, which is available on the official website By staking ETH, you can get swETH, and then go to eigenlayer to re-pledge. One is rswETH Liquid Restaking, which means you can get rswETH by staking ETH on Swell, and you can directly complete the re-staking.
Income: staking income, Eigenlayer points, SWELLpoints/tokens strong>
●Kelp DAO
Official website: https://kelpdao.xyz/retake/
How to play:Restaking project made by Stader Lab, mainly The model is Liquid-LSD Restaking, that is, you can deposit stETH into lido to get rsETH, but it cannot be redeemed yet.
Income: pledge income + eigenlayer points + kelp points
●Puffer finance
Official website: https://puffer.fi
Project progress:Binance Labs (announced on January 30), Brevan Howard Digital, Jump Crypto and Lightspeed Faction, and investment from the founders of Eigenlayer. The project partner is the startup of Jason Vranek, a former chainlink engineer with a strong technical background. In addition, OGs such as Mr. Block and Shenyu also participated in the seed round. Very worthy of attention.
Project model: Judging from the current news, it is mainly native staking, and it is expected to launch a dual-token model, the details of which have not been disclosed.
●Renzo
Official website: https://app.renzoprotocol.com/retake< /p>
How to play: The current TVL is 160M, pledge ETH to get ezETH, which cannot be redeemed yet. TVL has grown rapidly in 24 years.
Income:Staking income + eigenlayer points + Renzo points (points based on holding hours)
etherfi
Official website: https://app.ether.fi/
How to play: The current TVL is 532.7M, pledge ETH to get eETH, and it can be redeemed in 14 days.
Income:Staking income + eigenlayer points + ether points (pledged ETH*1000*number of pledge days)
● eigenpie
https://www.eigenlayer.magpiexyz.io/retake
< p style="text-align: left;">This project will be introduced in detail in another article
Ecological projects: Altlayer and others Ecological Potential Project
In the current Eigenlayer ecosystem, the recent ALTlayer (AVS and roll-up services) has been stealing the show, and the currency price has also risen. It quickly ignited other projects in the Eigenlayer ecosystem.
In the Eigenlayer ecosystem, the main categories are divided into three categories: AVS, Roll-up and Operator.
Introduction to key projects
●EigenDA: Data Availability Layer (DA)
Main introduction: The first official AVS service launched by eigenlayer, Restakers can entrust their rights and interests to node operators that perform verification tasks for EigenDA in exchange for service payments, and Rollups also Ability to publish data to EigenDA.
Other ecological similar projects: AltLayer, Celo, Mantle, Movement, Caldera, Layer N, Polymer Labs
●Witness Chain: Witness Chain
Main introduction: middleware, Witness Chain uses eigenlayer to build a decentralized monitoring network and provide AVS for OP rollup Provable monitoring of services.
●Lagrange: cross-chain bridge
Main introduction: cross-chain infrastructure, mainly used For cross-chain state verification, verify and confirm the proposal block state transition of optimistic rollup, and generate zero-knowledge state proof. Currently it is compatible with EVM, and will be further compatible with non-EVM chains in the future, such as Solana, sui, etc.
●Espresso: decentralized sorter
Main progress: $32 million in seed round , the project was established mainly to build a privacy public chain; the project team was deeply involved in infringement and ethics scandals in the early stage. Later, it was converted into a decentralized sequencer, mainly to provide a modular Sequencer shared component for Rollups, which can quickly implement one-click chain publishing.
●Omni: L1 blockchain, https://omni.network/
Main progress: It has received 18M in financing, including investments from coinbase, jumpcapital, Polygon, Pantera Capital, etc. You can currently earn points through its Omni Overdrive Launch Supporter in the Galxe platform through its test network.
●layerN: Modular L2, https://www.layern.com/
Main progress: In September 2023, it received US$5 million in joint investment from Founders Fund and dao5, and has received 3 rounds of financing so far. The public test network will be launched in February and can be experienced.
●Polyhedra Network ZKP track, cross-chain bridge
Main progress: cumulative It raised US$25 million in financing from well-known institutions such as Binance Labs, Polychain Capital, ABCDE Labs, and OKX. You can currently participate in early test coins or participate through chainlist.org
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