Ether “Re-Staking”, EigenLayer Launches Testnet

Restaking ETH

Ethereum (ETH) “re-staking” protocol EigenLayer announced today that it has launched its first testnet.

EigenLayer is a protocol that generates derivative tokens from ETH staked on Ethereum and allows re-staking on other protocols.

The protocol reuses ETH’s staking security and allows external projects to build their own modules on EigenLayer to validate middleware, sidechains, rollups, dApps, oracles, bridges, etc.

The testnet will be rolled out in three stages, with Stage 1 currently targeting stakers. It focuses on two liquid staking derivatives (stETH and rETH) and restaking of ETH (native restaking).

Through the Stage 1 testnet, interested users can familiarize themselves with the re-staking module and related interfaces.

For example, when you create a new validator, you can set your withdrawal credentials in EigenLayer’s smart contract, allowing staking on EigenLayer. Additionally, existing ETH stakers will be able to participate in the EigenLayer testnet after Ethereum’s Shanghai (Shapella) upgrade, scheduled for April 12th.

connection:Ethereum “Shanghai”, mainnet implementation date decided

Eigen’s potential

The potential market size of EigenLayer is huge, and middleware used as a restaking destination may also promote the secure growth of the network.

Currently, approximately 17.9 million ETH (approximately ¥4.4 trillion) is locked up in Ethereum staking contracts, accounting for approximately 15% of the total supply of Ethereum. Its asset value exceeds the issuance of USDCoin (USDC), which ranks fifth in terms of market capitalization. USDC is a stablecoin that is pegged to the US dollar.

The project has received industry acclaim and is backed by cryptocurrency venture firms including Blockchain Capital, Coinbase Ventures, Polychain Capital, Electric Capital, and Finality Capital Partners. EigenLayer raised about ¥6.5 billion ($50 million) in a Series A funding round in March.

The Eigen Labs team is at the forefront of some of the most exciting work happening in Ethereum. @etherealvc is proud to have supported @sreeramkannan and the @eigenlayer team since inception. https://t.co/WP6qu5rW5z

— Joseph Lubin (@ethereumJoseph) March 29, 2023

Ethereum co-founder Joseph Lubin said of EigenLayer, “We are at the forefront of Ethereum’s most exciting mission.” He also said, “EigenLayer is a new paradigm that fosters protocol-centric innovation through a programmatic decentralized trust marketplace.”

Stage 2 of EigenLayer targets operators, while stage 3 focuses on services. Future schedules, including the launch of the mainnet, have not been disclosed at this time.

connection:Ether ‘re-staking’ firm EigenLayer to raise $65 million

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