Two Key Challenges:

1. Fragmented Security: Since the inception of Web3, one of the fundamental challenges has been the fragmentation of crypto-economic security. From Bitcoin’s early days to Ethereum and other Layer 1 networks’ latest upgrades, building robust crypto-economic security systems has been consistently difficult, especially evident on the Ethereum network. Middleware and non-EVM applications built on Ethereum often need to create their own trust networks, which is highly inefficient: the cost to bootstrap security is high, requiring significant resources and time to establish. Once operational, decentralized security networks demand ongoing effort to maintain and scale. As more applications are built, crypto-economic security becomes increasingly fragmented across the network.
2. Token Staking Efficiency: In DeFi, token staking is a core mechanism for securing consensus and validation, and it’s also one of the main activities in the ecosystem. However, staking efficiency has long been an issue: staked tokens typically only secure a single network, limiting the utility of the staked capital and leading to low capital efficiency. Additionally, staking rewards often only come from staking incentives, without other avenues to increase returns, which limits the economic appeal for stakers. As more networks and applications require staking for security, stakers face locked-in capital and are unable to flexibly support multiple networks.

EigenLayer: Shared Security on Ethereum

Introduction to the Eigenlayer Project

EigenLayer is an innovative protocol built on Ethereum, introducing a new primitive called “restaking.” This approach enables staked ETH and Liquid Staking Tokens (LSTs) to be reused, allowing users to opt into the EigenLayer smart contract and restake their ETH or LST to earn Liquid Restaking Tokens (LRTs). This process not only extends crypto-economic security to various applications on the Ethereum network but also opens up new avenues for earning additional rewards.

EigenLayer’s Key Mechanism

Key Participants and Stakeholders

EigenLayer allows developers to leverage Ethereum’s existing validator set and staked ETH to address the fragmented security issue mentioned above. This method is called “shared security.” Shared security and the restaking mechanism lower the entry barriers for developers while creating new opportunities for Ethereum stakers, enabling them to actively participate in securing multiple networks that require crypto-economic collateral and external operators, thereby maximizing their reward potential.

• Restakers: Users who stake their ETH in EigenLayer, allowing their funds to be restaked and extend security to various AVS. They can run their own nodes or delegate their stake to operators.
• Operators: Organizations or individuals who run nodes and provide infrastructure services to AVS in exchange for rewards. They execute smart contracts and ensure AVS operations, adhering to predefined rules and slashing conditions imposed by AVS.
• AVS (Active Validation Services): Services built on EigenLayer and executed by operators, such as DApp protocols. AVS gain security through restaking and impose their own slashing conditions to prevent malicious behavior by operators.
• AVS Users: Individuals or entities accessing services provided by AVS, benefiting from enhanced security and reliability through the restaking mechanism.

AVS (Active Validation Services)

AVS are services that gain security through EigenLayer’s restaking mechanism, allowing DApps, Layer 2 solutions, cross-chain bridges, etc., to reduce the cost and complexity of building their own security networks. AVS work by collaborating with operators to ensure smooth service operation. Operators are responsible for executing AVS smart contracts according to the set rules. To prevent malicious behavior, AVS impose slashing conditions, and if operators violate these, their stake assets may be slashed. AVS enable developers and users to build and use various application services on EigenLayer’s secure network, reducing security maintenance costs while benefiting from EigenLayer’s shared security.

EigenLayer: The Undisputed Restaking Leader

EigenLayer was the first project to propose restaking. Since its launch in June 2023, EigenLayer has experienced rapid growth. Its restaking mechanism and security have been validated by the market, securing its position as the leader in the restaking sector with impressive TVL (Total Value Locked) and widespread market recognition. At its peak, EigenLayer’s TVL surpassed $20 billion, making it the second-largest DeFi protocol after Lido.

EigenLayer’s Funding Background and Partners

• 2022–05–24: EigenLayer completed an undisclosed angel funding round with investments from dao5, cFund, and Coinbase Ventures.
• 2022–08–01: EigenLayer completed a $14.5 million seed round, led by Polychain Capital and Ethereal Ventures.
• 2023–03–28: EigenLayer completed a $50 million Series A round, led by Blockchain Capital, with participation from Coinbase Ventures, Polychain Capital, Bixin Ventures, Hack VC, Electric Capital, IOSG Ventures, and others. The round valued EigenLayer at $500 million.
• 2024–03–22: EigenLayer completed a $100 million Series B round led by a16z.
  Total funding: $165 million.
  LST Partners: Puffer, Ether.fi, Renzo, Swell, EigenPie, Zircuit, Restake Finance, Bedrack
  AVS Node Operators: (List provided in the image).
  

EigenLayer Tokenomics

$EIGEN: Work Token

According to EigenLayer’s whitepaper published on GitHub, unlike typical governance tokens, $EIGEN is positioned as a universal, verifiable “work token.” A work token is used by participants to stake and perform specific work (such as blockchain validation). If a participant fails to meet specific work commitments, their staked work token may be slashed.
In EigenLayer’s context, $EIGEN staking supplements ETH restaking. It introduces a new mechanism to address subjective errors, such as behavior that cannot be identified on-chain but still needs penalization. EigenLayer supports a complementary staking model between ETH and $EIGEN: ETH staking addresses objective consensus issues, determining whether a node is acting maliciously, while $EIGEN staking addresses subjective economic behavior, determining if a node’s actions are reasonable.
Through $EIGEN staking, EigenLayer can ensure comprehensive validation without forking Ethereum’s mainnet consensus, unlocking a range of Active Validation Services (AVS) with strong economic security that were previously unattainable. This could spark innovation in areas like oracles, data availability, databases, gaming virtual machines, and prediction markets.

Token Distribution

$EIGEN is expected to start transferring and selling tokens on September 30, with an initial total supply of 1.67 billion tokens:

• Airdrop rewards: 15%
• Community programs: 15%
• Ecosystem development: 15%
• Early contributors: 25.5%
• Investors: 29.5%

How to Claim Airdrop

EigenLayer has allocated 15% of the initial token supply to several airdrop seasons. Season 1 distributed 4.54% of the initial supply (75.91 million tokens), which has been fully claimed. 5.15% is reserved for Season 2, with remaining airdrop tokens allocated to future seasons.
Season 2 $EIGEN tokens will be distributed across three main categories:

• Stakers and operators: Users actively stake during Season 2 (4.2%)
• Ecosystem partners: AVS, LRT, Rollups, RaaS providers, and other major contributors (0.6%)
• Community members: Early advocates, contributors, and projects that played a critical role in supporting EigenLayer (0.35%).

The snapshot for Season 2 airdrop has been completed, and claims opened on September 17. The claiming window will remain open until March 16, 2025.
Visit: https://claims.eigenfoundation.org/ (the only official claiming site) to claim $EIGEN.

Gate.io Pre-market Trading for $EIGEN

In preparation for $EIGEN’s upcoming listing, Gate.io has opened its pre-market trading for $EIGEN.
Gate.io pre-market trading is a special over-the-counter (OTC) service allowing investors to buy and sell tokens before their official trading. This service allows both parties to set their own prices and complete transactions, enabling investors to buy tokens at anticipated prices before the official listing. Investors may acquire popular tokens at prices lower than the market’s listed price, giving them a potential price advantage.
For more details on Gate.io’s pre-market trading for $EIGEN, check the announcement: https://www.gate.io/announcements/article/36357.