EigenLayer

EigenLayer guide!

EigenLayer is an innovative protocol operating on the Ethereum blockchain, and it brings forth the concept of "restaking." This novel idea in crypto-economic security allows users to reuse their staked ETH or liquid staking tokens (LST) on the consensus layer. By participating in EigenLayer smart contracts, individuals can restake their ETH or LST tokens (like fxsETH, rETH, or stETH), thereby extending the security of the crypto-economy to a range of additional network applications and earning extra rewards in the process. EigenLayer empowers Ethereum stakers to enhance the security of multiple services by restaking their previously staked ETH, enabling them to engage with various services simultaneously and contribute to pooled security. This not only reduces the financial requirements for stakers but also significantly enhances the trust assurances for individual services. EigenLayer's primary goal is to address the challenge of fragmented security within decentralized applications built on Ethereum. It allows any service, regardless of its structure, to access the shared security provided by Ethereum's stakers. This fosters an environment conducive to permissionless innovation and governance driven by free-market principles.

But how it works?

Fundamentally, EigenLayer enables Ethereum stakers to participate in smart contracts and restake their original ETH or liquid staking tokens (LSTs) in exchange for extra rewards. By contributing to shared security, these stakers play a crucial role in securing multiple services on the network simultaneously, effectively addressing the fragmented security challenges that have been a concern in the industry. The initial security design of the protocol places a strong emphasis on decentralization and the credibility of the platform. It also prioritizes the protection of user funds through swift governance responses to emergency situations. To achieve this, a multisignature (multisig) approach is adopted. It grants control over contract upgrades and slashing to a "Community Multisig," while a "Safety Multisig" is empowered to pause functionality when necessary.

Restaking

You are already able to restake your ETH with P2P.org Ethereum staking dApp. Our non-custodial staking dApp already supports customization of validator withdrawal addresses, which is the basic requirement for native restaking to an EigenPod. Below we have prepared a step-by-step guide on how to do this. However, before restaking, please take note: 

The withdrawal address is utilized to receive your deposited ETH back. It's established only once, and it cannot be altered once the staking deposit is made because the network permanently links a specific validator to a withdrawal address. If you choose to designate the EigenPod Address as your withdrawal address, it means you acknowledge the potential risks associated with Eigen Layer smart contracts, and you understand that P2P.org does not have the capability to modify this address.