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

EigenLayer has completed its rollout phase by removing caps on all ETH liquid staking tokens and unpausing restaking deposits, allowing uncapped access to its eleven existing LST pools, following a proposal to limit LSTs at 33%.

#BullorBear #EigenLayer #bitcoinhalving #eigen

EigenLayer plans to upgrade its mainnet smart contract on April 8, causing service suspensions for up to 24 hours. Users are advised to complete pending withdrawal requests before April 8.

#EigenLayer #BullorBear #Nonfarm #eigen

📢 Eigenlayer, the restaking protocol amassing $15.7 billion in deposits, unveiled its token whitepaper, confirming plans for an EIGEN token.

📄 The Eigen Foundation, supporting the protocol, detailed a total supply of about 1.67 billion EIGEN tokens, with 45% allocated to the EigenLayer community.

🌐 This 45% is split into three subgroups: stakedrops, future community initiatives, and ecosystem development, each receiving 15%.

🎉 In the inaugural "stakedrop" season, Eigen Foundation will distribute 5% of the token supply to users based on their staking activities from March 15. Claiming for these EIGEN tokens opens on May 10 and closes after 120 days.

💼 Investors will receive 29.5% of the token supply, while 25.5% goes to early contributors, both with a three-year lock period.

⏰ Users can secure EigenDA, Eigenlayer’s Actively Validated Service (AVS) for data availability, with their EIGEN tokens at launch. Other AVSs are expected to follow.

🔄 EigenLayer represents a new trend called "restaking," where users’ ETH tokens deposited as security on Ethereum can be repurposed to secure additional networks or protocols, collectively known as AVS networks on EigenLayer.

#EigenLayer #eigen #restaking #tokens

EigenLayer has released a whitepaper detailing the upcoming launch of its Eigen token, which will be airdropped to members of the community.

The airdrop will distribute 5% of the token supply in season 1, with additional airdrops planned for those who interacted with EigenLayer-related DeFi positions in season 2.

A total of 15% of the token supply will go to stakers over the long term, while another 15% will be allocated to community initiatives and ecosystem development.

Investors and early contributors will receive 29.5% and 25.5% of the token supply respectively, with a three-year lockup period in place.

#EigenLayer #eigen #Megadrop #BullorBear #bitcoinhalving

Eigen Foundation allocates an additional $1,000 in EIGEN tokens to over 280,000 users, following criticisms of EigenLayer's initial token genesis event and its linear distribution model favoring whales.

#eigen #EigenLayer #buythedip #BullorBear #bitcoin

Opinions on the EIGEN Stakedrop have sparked discussions on Crypto Twitter, with excitement and caution prevailing. Despite initial complaints about high gas fees and token distribution, the Eigen Foundation has responded positively to community feedback.

🎉 Good News:

- Eigen Foundation giving away an additional 100 EIGEN tokens to over 280,000 users who interacted with EigenLayer before April 29th.

- Tokens reflected in allocations claimed after May 10th, with measures to filter out possible Sybil accounts.

🔄 Adjustments:

- Foundation accelerating plans for broader token distribution, aligning with community demands.

- Clarifications provided on Timeline, Lockup Countdown, and Testnet user allocations to address community concerns.
📆 Timeline Clarification:

- EIGEN unlockable after new features go live, set for September 30th, 2024.

🔒 Lockup Countdown:

- Funds, including team funds, locked up for one year after EIGEN becomes transferable. Team unlock at 4% per month, fully unlocked in three years.

🛠 Testnet Users:

- Complaints addressed regarding incorrect removal from eligibility list, updates to be provided soon.

Eigen Foundation's responsiveness and clarifications demonstrate commitment to community engagement and transparency in navigating the EIGEN Stakedrop process.

#altcoins #EigenLayer #eigen

📊 EigenLayer changed its drop details.

▫️100 more #eigen will be added to all users who’ve interacted with #EigenLayer before April 29th. All Season 1 users will receive a minimum of 110 EIGEN (floor of 10 EIGEN plus the boost of 100 EIGEN).
▫️Investors and the team remain in full lock-up for one year after Eigen is transferable for the community.
▫️Missed #Testnet user allocations will be updated as part of Phase 2 of Season 1.
▫️To provide clarity around timelines, these features are targeted for mainnet by September 30th, 2024.
#CryptoWatchMay2024 #BTC