What is Eigenlayer?

Scaling Ethereum Security and Utility

EigenLayer is a protocol developed on the Ethereum platform, offering a novel concept called restaking, which enhances cryptoeconomic security. This new feature allows for the rehypothecation of ETH at the consensus layer. Holders of ETH who participate in staking can choose to use EigenLayer smart contracts to restake their ETH, thereby contributing to the crypto-economic security of more applications within the network. A key aspect of EigenLayer's value is its capacity to consolidate and expand crypto-economic security via restaking, as well as to authenticate emerging applications created on the Ethereum network.

EigenLayer offers validators an opportunity to restake their ETH and opt into new Actively Validated Services (AVS), enhancing their yield potential at the cost of additional slashing risks. Restaking involves validators setting their beacon chain withdrawal credentials to EigenLayer's smart contracts. For those not staking directly to the Beacon Chain, EigenLayer accepts various ETH liquid-staked tokens (LSTs) for restaking. Rest builds on this novel innovation enabling users to take advantage of everything that EigenLayer offers in a simple and cost effective manner, whilst also maintaining liquidity via restETH, a yield bearing assets pegged to ETH.

More technical info about EigenLayer can be found in their Docs or Whitepaper.