EigenLayer is an Ethereum-based protocol that lets stakers put their existing ETH to work securing additional networks and applications — a process known as restaking. The idea is simple: instead of each new blockchain or decentralized service building its own validator set from scratch, they can “borrow” Ethereum’s security by tapping into its massive pool of staked ether.
With Ethereum’s market cap hovering around $380 billion, the cost of attacking the network is prohibitively high. An adversary would need to control over half of the staked ETH — more than $190 billion — to have any chance of taking it down. EigenLayer leverages that same economic security to protect other protocols.
How Restaking Works
EigenLayer accepts two types of deposits:
- Native ETH from Ethereum validators
- Liquid staked ETH tokens from services like Lido (stETH), Rocket Pool (rETH), and Coinbase (cbETH)
Once deposited, this ETH can be pledged to secure “Actively Validated Services” (AVSs) — networks and tools that rely on proof-of-stake mechanics. These AVSs might include consensus protocols, oracle networks, or data availability layers.
EigenLayer launched deposits in 2023 and has since attracted more than $15 billion to secure projects like EigenDA (its own data availability service) and others such as AltLayer, Brevis, Eoracle, Lagrange, WitnessChain, and Xterio.
Liquid Restaking
For those who want to keep their assets liquid while still participating, liquid restaking offers a middle ground. Platforms like EtherFi, Renzo, and Kelp allow users to deposit ETH or liquid staking tokens into EigenLayer. In return, they receive Liquid Receipt Tokens (LRTs) that can be swapped back to ETH anytime, letting holders stay active in DeFi without locking up funds long-term.
Liquid restaking protocols now account for over $10 billion of EigenLayer’s total value locked (TVL).
The Eigen Token & Governance
The Eigen Foundation — a nonprofit entity — launched the Eigen token in April 2024 with 1.67 billion tokens in circulation. The distribution plan set aside:
- 45% for community and ecosystem initiatives
- 29.5% for investors
- 25.5% for early contributors
A phased release is in place, with a three-year lockup for major allocations. Fifteen percent of the total supply is earmarked for airdrops, including an initial 5% aimed at early restakers.
Inter-Subjective Forking: A Unique Safeguard
Alongside the token launch, EigenLayer introduced inter-subjective forking — a slashing mechanism for misbehavior that isn’t objectively verifiable, such as withholding data. It allows the community to “fork” the protocol if needed, but only after a challenger burns a significant amount of Eigen tokens. The outcome is decided by social consensus, much like Ethereum’s own governance history.
This system is meant to avoid overburdening Ethereum’s validators, a concern Ethereum co-founder Vitalik Buterin has previously raised about restaking’s potential risks.
Why It Matters
EigenLayer’s shared security model could accelerate innovation by lowering the barrier for new protocols to launch with strong, battle-tested security. Whether through native restaking or liquid restaking, it turns Ethereum’s economic security into a reusable resource — potentially reshaping how decentralized networks are built and secured.
