The team clarified that the move will reduce liquidity risks

EigenLayer has reduced the delay in withdrawing EIGEN from staking to seven days

28.08.2024 - 14:50

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2 min

What’s new? The team behind the Ethereum blockchain-based EigenLayer restaking protocol has reduced the timeframe for withdrawing EIGEN governance tokens from the block from 24 days to seven days. According to the developers, this initiative will limit the liquidity risks associated with EIGEN on the blockchain, which is necessary for the upcoming implementation of intersubjective slashing in the protocol’s mainnet.

Источник: X.com

What else is known? The EigenLayer protocol allows users to re-lock their assets in staking for additional rewards, which also reduces fragmentation and increases ecosystem security.

The total value locked (TVL) of the protocol, according to DeFiLlama, is $11,816 billion. By this metric, EigenLayer is the second DeFi protocol on the Ethereum network, behind only the Lido liquid staking protocol. The largest share of EigenLayer’s TVL (about 70%) is made up of wrapped Ethereum (WETH) native tokens.

Earlier, the project’s team launched the AVS Rewards program, which will distribute at least 4% of the total EIGEN offering to stakers and operators.

Slashing is a reduction in the reward to validators for incorrect transaction processing. In the case of objective slashing, imposing a penalty does not require consensus among system participants. In contrast, intersubjective slashing cannot be implemented without community consensus.

In EigenLayer, fines can be levied not in Ethereum (ETH) tokens native, but in EIGEN governance tokens. Thus, the project provides two types of coins: regular EIGEN can be stored at external addresses and can be used to interact with decentralized applications (dApps), while bEIGEN blocked in staking can be penalized. Also, the latter type of asset lends itself to forks.

In addition, projects participating in the protocol, called Actively Validated Services (AVS), can optionally replace bEIGEN coins with their own tokens as part of the intersubject slashing system.

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