One thing I learned today:

EigenLayer and reStaking has been taking the Web3 community by storm this week. I was familiar with EigenLayer, but was not totally understanding what their product was or how it worked. Here is my best attempt to explain what they do and why reStaking provides values to users and developers.

Users on Ethereum can stake their ETH with a validator node such as Coinbase, Rocketpool, Lido, etc. However, when a user stakes their ETH into a validator pool they receive a staked token in return. Think of this as the users receipt into putting money into an investment fund.

These tokens are usually cbETH, stETH, LsETH, rETH, etc. They hold the same value as what you put into the fund, but now you have a liquid representation of the monetary value you staked in ETH. This gives the users an abundance of options on how they’d like to use these liquid staked tokens.

Purpose for users:

Users can reStake their ETH to help make the ETH network more secure. Users can then earn staking APR (usually around 5%) on their staked ETH. In result this also makes dApps more secure which is a win for both users and developers.

Purpose for developers:

I am going to refer to a chart from the EigenLayer whitepaper:

AVS= Actively validated Service

In today’s Ethereum security economics (on the left) hackers only have to attack one of the AVS modules to harm the network by potentially stealing or draining funds. With Eigenlayer, the restaked token are pooled together to create a pool of $13 billion which is much harder o hack. Hence, creating a more secure Ethereum network.

For today’s blog I will stop here and revisit Eigenlayer in a later post.

Gratitude:

The ocean

peace of mind

friends

Affirmations:

I will learn to grow my blog by 10% every month using web3 tools

I will run the 2024 NYC marathon under 4:00:00

Miracle Morning:

Read:Yes

Meditate: No

Workout: yes (run and surf)

Practice Gratitude: Yes

Affirmations: yes

make my bed: yes

GNs in the chat

One thing I learned today:

EigenLayer and reStaking has been taking the Web3 community by storm this week. I was familiar with EigenLayer, but was not totally understanding what their product was or how it worked. Here is my best attempt to explain what they do and why reStaking provides values to users and developers.

Users on Ethereum can stake their ETH with a validator node such as Coinbase, Rocketpool, Lido, etc. However, when a user stakes their ETH into a validator pool they receive a staked token in return. Think of this as the users receipt into putting money into an investment fund.

These tokens are usually cbETH, stETH, LsETH, rETH, etc. They hold the same value as what you put into the fund, but now you have a liquid representation of the monetary value you staked in ETH. This gives the users an abundance of options on how they’d like to use these liquid staked tokens.

Purpose for users:

Users can reStake their ETH to help make the ETH network more secure. Users can then earn staking APR (usually around 5%) on their staked ETH. In result this also makes dApps more secure which is a win for both users and developers.

Purpose for developers:

I am going to refer to a chart from the EigenLayer whitepaper:

AVS= Actively validated Service

In today’s Ethereum security economics (on the left) hackers only have to attack one of the AVS modules to harm the network by potentially stealing or draining funds. With Eigenlayer, the restaked token are pooled together to create a pool of $13 billion which is much harder o hack. Hence, creating a more secure Ethereum network.

For today’s blog I will stop here and revisit Eigenlayer in a later post.

Gratitude:

The ocean

peace of mind

friends

Affirmations:

I will learn to grow my blog by 10% every month using web3 tools

I will run the 2024 NYC marathon under 4:00:00

Miracle Morning:

Read:Yes

Meditate: No

Workout: yes (run and surf)

Practice Gratitude: Yes

Affirmations: yes

make my bed: yes

GNs in the chat