The launch of EigenLayer, a restaking protocol for Ethereum with over $12 billion locked, has sparked concerns. While aiming for a stable marketplace, EigenLayer hasn't enabled slashing or in-protocol payments yet, leaving users unsure of potential risks. A report by Chorus One highlights two main concerns: centralization and slashing cascades.

Centralization could occur as AVSs (actively validated services) favor larger operators with more pooled security. This could lead to a dominant few controlling a significant portion of the network. The other worry is a "slashing cascade." If a major operator suffers a slashing penalty, a domino effect could ripple through the network, jeopardizing Ethereum's security. However, the report also acknowledges that slashing on Ethereum is uncommon and often caused by human error.

Another potential issue is the unpredictable yield of AVSs. Chorus One's testnet experience revealed hidden costs like data storage, potentially making some AVSs less profitable. Despite these concerns, Chorus One continues to attract delegations as it expands its role as an EigenLayer operator.

#oportunity #risk #WIF #eigen