EigenLayer: everything you need to know about EIGEN

What is EigenLayer?

EigenLayer is an innovative token designed to enhance the security and decentralization of the Ethereum network. It provides a platform where users can redeploy their staked ETH to earn additional rewards. At the same time, it enhances the security of new blockchain projects utilizing the network. This concept is called "restaking," adding a new dimension to the Ethereum ecosystem and maximizing the utilization of staked assets.

How does EigenLayer work?

EigenLayer utilizes the concept of restaking. Users can reuse their existing Ethereum stake, allowing them to participate in multiple projects without additional capital. This increases the efficiency of deployed assets and contributes to securing various services within the Ethereum ecosystem.

The OWN token.

EigenLayer uses a native token that is used for payments within the network and as a reward mechanism for participants who restake their assets.

The technology behind EigenLayer

EigenLayer runs on the Ethereum blockchain and uses smart contracts to manage the restaking of ETH. The technology enables additional functionality to be offered on top of Ethereum, increasing both security and flexibility.

The EigenLayer ecosystem.

The ecosystem of EigenLayer consists of stakers, restakers, developers, and various decentralized applications. Through restaking, multiple projects can benefit from the security provided by the staked ETH.

Benefits of EigenLayer

• Efficiency: Users can use the same ETH for multiple purposes, enabling more efficient use of capital.
• Security: Projects can leverage the security of Ethereum without having to create new tokens themselves.
• Extra rewards: Restakers receive additional rewards on top of their regular staking profits.

Disadvantages of EigenLayer.

• Complexity: The process of restarting can be complex, especially for users who are new to the crypto world.
• Risks: Restaking involves risks, such as potential losses if one of the supported projects does not function properly.

Who is the founder of EigenLayer?

EigenLayer was founded by Sreeram Kannan, a professor at the University of Washington with a background in blockchain and distributed systems.

Expectations for the near future

Experts expect a minimum price of €12.77 in 2026 and a minimum price of €42.21 in 2031.

Frequently asked questions