[EigenLayer Reportedly Worth Over 20 Billion, Riskier Than Meme Tokens? 】
Eigen Layer relies on tokenless yields that are based on provable reserves. The value of Eigen Layer comes from collateralized Ether (ETH), which is used to secure new projects. Eigen Layer does not centralize deposits, but distributes them across multiple Active Validation Services (AVS), each with different rules. Currently, competitive AVS shows a set of leaders with the highest liquidity.
The Eigen Layer ecosystem attracts new projects that promise higher reward rates, potential airdrops, and additional yield farming opportunities. Eigen Layer and AVS have no inherent risk or leverage of their own, but are associated with a risk environment. Eigen Layer bears the risk of the performance of the EIGEN token. The Eigen Points market is just starting to show its value, selling opportunities are still limited, with only the Kelp DAO trying to tokenize points. Additionally, each AVS may award its own points, which still have to be determined by the market as to their value.
The original intention of Eigen Layer was to enhance the security of Ethereum while providing security for new projects. Re-hypothecaters allow Eigen Layer access to their staked ETH, and Eigen Layer has the right to "cut" their staked ETH if it fails to perform honest verification services. So far, Eigen Layer has not signaled liquidations or losses, with cut smart contracts showing no activity. The greatest risk arises from AVS projects dealing with high-leverage yield farming.
Overall, the liquidity staking market has expanded to $67 billion in market capitalization, even after the recent correction. The frenzy of new releases is over, and individual protocols are vying for top spots. Greed may drive users to choose protocols like Pendle, which also attracted a significant investment from TRON founder Justin Sun.
