Building applications on blockchain is not as easy as building applications using a traditional stack. On blockchain, every state transition in the application relatively costs more, usually brings scalability issues due to the limitations of block space and always requires a consensus to reach the quorum, which takes several minutes to reach the cryptoeconomic finality (~12 min on Ethereum mainnet). And for the infrastructure projects, bootstrapping their own decentralised network takes the majority cut of their funding, leading to the project’s token devaluation.

Eigen Layer focuses on solving all the above issues and more in the blockchain industry, it’s not only helping the infrastructure projects but the base layer, i.e., Ethereum mainnet, to get more decentralised and rewarding for the ETH stakers. Let’s understand how 👇🏻

Eigen Layer is are set of contracts that enables Ethereum’s consensus layer stakers/validators to opt in to validate new AVS modules built on top of Ethereum by enabling additional slashing conditions on their staked $ETH.

This enables validators that are already present in the Ethereum network to earn additional rewards in exchange for the computational power, storage, etc, with their native staking yield from validating Ethereum blocks.

When a block is being created on Ethereum, the state transition needs to be validated by a network of validators. When the majority of the network accepts the transition, the block is said to be “finalised”. To be part of this consensus network, the validators are required to stake 32 $ETH, which is subject to slashing in case of malicious activity by the validator and after every epoch, validators receive rewards for their honest work. For a few validators who have a basic setup, this is good incentive as it keeps the network secure and decentralised, but many validators have a high-end setup whose computational power has not been utilised to the full extent. Eigen Layer solves this!

Eigen Layer enables validators to provide their computational power and other resources while keeping their staked ETH in the consensus network. To be part of this, validators need to change their $ETH withdrawal credentials to the Eigen Layer smart contracts and opt in for the modules they like to validate, while keeping in mind that each module brings its own additional slashing mechanism. For example, in the Data Availability module, the validators are responsible for providing storage, and in exchange, every time the service is used, they will be rewarded. And in case of any malicious activity, their staked $ETH will be slashed based on the conditions imposed by the Data Availability module developer.

This whole process is known as “restaking”.

Yes! Eigen Layer encourages solo stakers (or home stakers) to join the ecosystem. Solo stakers are usually the ones who don’t have high computational power or resources but want to contribute to making the Ethereum network decentralised.

For these solo stakers, Eigen Layer provides two options:

1. Opt in to AVSs on the Eigen Layer by providing the validation services directly. This might require additional resources from solo stakers.

2. Delegate the Eigen Layer operation to another entity. This doesn’t require additional resources from solo stakers.

Both options provide an opportunity to earn additional rewards apart from their native Ethereum yield while contributing to the decentralisation and censorship resistance of the Ethereum network.

Blockchain has several limitations, like inaccessibility to off-chain data, high cost of zk proof generation, and many more. These limitations can be addressed by deploying services off-chain, but that brings the problem of verification and security, therefore, we require a network that can run these services and verify them with economic security. Eigen Layer solves this also!

In the Eigen Layer, you can create your own actively validated service (AVS) modules, which will be validated by validators who opt for it. Taking the last example, a DA AVS module, which requires active validation of the block data by a decentralised network of validators, can be built on the Eigen Layer. The AVS module developer will set the slashing conditions required to be accepted by the validator opting in. This makes the DA availability layer decentralised, with the Cost of Corruption (CoC) relatively higher than a fresh network, without bootstrapping the liquidity and spending millions in incentivisation on their own.

Cost of Corruption (CoC) is the cost required to create an adverse condition. For example, an AVS module with $20M in staked will cost a minimum $10M to create an adverse condition.

Some more examples for AVS modules: Price Oracle, ZK proof generation, TEE, basically anything that requires active validation of the correct execution of the service.

Many would like to participate in the Eigen Layer ecosystem, but don’t have the requirements fulfilled to become an operator. For this, Eigen Layer provides an option to delegate their stake to any operator of their choice and earn rewards.

To note, if the chosen operator gets slashed, the d stakes also get slashed.

To conclude this, we can say Eigen Layer creates a marketplace for decentralisation.

• AVS module developers can buy decentralisation at a relatively cheaper price,

• ETH Validators (or Eigen Operators) can earn additional rewards for their stake $ETH and utilise the complete computational power of the system, and

• Anyone (or Delegators) can participate in the network by delegating, which eventually increases the CoC for AVSs.

Thanks for reading! If you have any queries, feel free to DM 🫡

Feedback is always appreciated 🙌🏻

Also, to learn more about Eigen Layer, checkout Coordinated.

Keep Building (, 🚀)

Building applications on blockchain is not as easy as building applications using a traditional stack. On blockchain, every state transition in the application relatively costs more, usually brings scalability issues due to the limitations of block space and always requires a consensus to reach the quorum, which takes several minutes to reach the cryptoeconomic finality (~12 min on Ethereum mainnet). And for the infrastructure projects, bootstrapping their own decentralised network takes the majority cut of their funding, leading to the project’s token devaluation.

Eigen Layer focuses on solving all the above issues and more in the blockchain industry, it’s not only helping the infrastructure projects but the base layer, i.e., Ethereum mainnet, to get more decentralised and rewarding for the ETH stakers. Let’s understand how 👇🏻

Eigen Layer is are set of contracts that enables Ethereum’s consensus layer stakers/validators to opt in to validate new AVS modules built on top of Ethereum by enabling additional slashing conditions on their staked $ETH.

This enables validators that are already present in the Ethereum network to earn additional rewards in exchange for the computational power, storage, etc, with their native staking yield from validating Ethereum blocks.

When a block is being created on Ethereum, the state transition needs to be validated by a network of validators. When the majority of the network accepts the transition, the block is said to be “finalised”. To be part of this consensus network, the validators are required to stake 32 $ETH, which is subject to slashing in case of malicious activity by the validator and after every epoch, validators receive rewards for their honest work. For a few validators who have a basic setup, this is good incentive as it keeps the network secure and decentralised, but many validators have a high-end setup whose computational power has not been utilised to the full extent. Eigen Layer solves this!

Eigen Layer enables validators to provide their computational power and other resources while keeping their staked ETH in the consensus network. To be part of this, validators need to change their $ETH withdrawal credentials to the Eigen Layer smart contracts and opt in for the modules they like to validate, while keeping in mind that each module brings its own additional slashing mechanism. For example, in the Data Availability module, the validators are responsible for providing storage, and in exchange, every time the service is used, they will be rewarded. And in case of any malicious activity, their staked $ETH will be slashed based on the conditions imposed by the Data Availability module developer.

This whole process is known as “restaking”.

Yes! Eigen Layer encourages solo stakers (or home stakers) to join the ecosystem. Solo stakers are usually the ones who don’t have high computational power or resources but want to contribute to making the Ethereum network decentralised.

For these solo stakers, Eigen Layer provides two options:

1. Opt in to AVSs on the Eigen Layer by providing the validation services directly. This might require additional resources from solo stakers.

2. Delegate the Eigen Layer operation to another entity. This doesn’t require additional resources from solo stakers.

Both options provide an opportunity to earn additional rewards apart from their native Ethereum yield while contributing to the decentralisation and censorship resistance of the Ethereum network.

Blockchain has several limitations, like inaccessibility to off-chain data, high cost of zk proof generation, and many more. These limitations can be addressed by deploying services off-chain, but that brings the problem of verification and security, therefore, we require a network that can run these services and verify them with economic security. Eigen Layer solves this also!

In the Eigen Layer, you can create your own actively validated service (AVS) modules, which will be validated by validators who opt for it. Taking the last example, a DA AVS module, which requires active validation of the block data by a decentralised network of validators, can be built on the Eigen Layer. The AVS module developer will set the slashing conditions required to be accepted by the validator opting in. This makes the DA availability layer decentralised, with the Cost of Corruption (CoC) relatively higher than a fresh network, without bootstrapping the liquidity and spending millions in incentivisation on their own.

Cost of Corruption (CoC) is the cost required to create an adverse condition. For example, an AVS module with $20M in staked will cost a minimum $10M to create an adverse condition.

Some more examples for AVS modules: Price Oracle, ZK proof generation, TEE, basically anything that requires active validation of the correct execution of the service.

Many would like to participate in the Eigen Layer ecosystem, but don’t have the requirements fulfilled to become an operator. For this, Eigen Layer provides an option to delegate their stake to any operator of their choice and earn rewards.

To note, if the chosen operator gets slashed, the d stakes also get slashed.

To conclude this, we can say Eigen Layer creates a marketplace for decentralisation.

• AVS module developers can buy decentralisation at a relatively cheaper price,

• ETH Validators (or Eigen Operators) can earn additional rewards for their stake $ETH and utilise the complete computational power of the system, and

• Anyone (or Delegators) can participate in the network by delegating, which eventually increases the CoC for AVSs.

Thanks for reading! If you have any queries, feel free to DM 🫡

Feedback is always appreciated 🙌🏻

Also, to learn more about Eigen Layer, checkout Coordinated.

Keep Building (, 🚀)