Project Introduction
EigenLayer is a middleware protocol based on Ethereum that introduces the concept of re-staking, allowing Ethereum nodes to re-stake their pledged ETH or LSD tokens to other protocols or services that require security and trust, thereby gaining double income and governance rights. At the same time, the utility of the Ethereum consensus layer can also be transferred to various middleware, data availability layers, side chains and other protocols, allowing them to enjoy Ethereum-level security at a lower cost.
With EigenLayer, Ethereum stakers can help secure multiple services by re-staking their staked ETH, select from numerous services simultaneously, and provide collective security. This not only reduces the capital cost for stakers to participate, but also significantly increases the trust guarantee of a single service.
EigenLayer aims to solve the fragmented security problem of decentralized applications built on Ethereum. It enables any service, regardless of its composition, to leverage the collective security provided by Ethereum stakeholders, creating an environment for permissionless innovation and free market governance.
Project Benefits
EigenLayer provides various benefits to reintegrators, such as securing innovative projects, promoting rapid innovation across the entire blockchain stack, and promoting Ethereum’s ecosystem growth. By re-acquiring ETH on EigenLayer, stakers will help support groundbreaking projects being built in the Ethereum ecosystem and access staking opportunities previously unavailable to them. \
As the Ethereum ecosystem continues to evolve, understanding the latest developments and assessing their impact on staking operations is critical to maximizing opportunities and mitigating risks. EigenLayer does not rely on Ethereum's social consensus. EigenLayer's goal is responsible decentralization. Rather than shifting the risk of unnecessary cuts to Ethereum or external protocols, EigenLayer includes a cuts veto committee. This internalizes social consensus and prevents risk reduction.
a16z: Why invested US$100 million in EigenLayer and was the only investor in this round
According to Bloomberg, Andreessen Horowitz (a16z) invested $100 million in encryption startup EigenLayer. Founder Kannan said that a16z is the only backer in this round of financing. The company previously raised $50 million in a funding round in March. Venture capital firm Andreessen Horowitz has invested $100 million in crypto startup EigenLayer, demonstrating that some of the industry's top backers are still betting on blockchain despite a sharp decline in crypto venture capital funding. EigenLayer was founded by Sreeram Kannan, formerly an associate professor at the University of Washington. The startup facilitates a process called “restaking” that has gained significant attention in recent months and is a variant of the method that runs Ethereum in which tokens are deposited Deposit or "stake" into the network to help verify transactions on the blockchain. Re-staking allows new projects built on Ethereum to leverage the security of the blockchain to power their own networks. Currently, EigenLayer offers a points system for users who heavily stake using its platform, but Kannan said there are currently no plans to launch a crypto token.
“They have many paths to profitability,” Yahya said. “It could be a more traditional business model, or there could be a token.”
The staking process has drawn scrutiny from regulators, including U.S. Securities and Exchange Commission Chairman Gary Gensler, who warned crypto companies that staking digital assets could violate federal securities laws.
Kannan said the company is essentially providing a marketplace for people seeking to re-hypothecate, rather than going through the actual staking process that has come to the attention of regulators.
EigenLayer principle
Conceived in 2013 and launched in 2015, Ethereum revolutionized the blockchain landscape with the introduction of the Ethereum Virtual Machine (EVM). Ethereum pioneered the concept of programmability, enabling distributed applications (DApps) to be built on top of it without permission. This innovation eliminates the need for DApp developers to be trusted, because security and activity are guaranteed by the underlying blockchain, and trust is provided by the blockchain.
This kind of decoupled innovation greatly promotes the development of the anonymous economy, because innovators do not need reputation or trust, DApps can be used by anyone they trust, and the underlying blockchain can verify the code of the DApp. The value stream provides trust to DApps through the blockchain and charges fees in exchange. With development and entering the Layer 2 era, its scale has expanded significantly.
EigenLayer directly connects the security and liquidity of Ethereum, and AVS plays a crucial role here. AVS (Actively Validated Services) usually refers to a service used to verify an individual's identity or specific information. AVS can be applied in many fields, such as finance, telecommunications, online services, etc., to ensure that the information provided is accurate, valid and legal.
Eigenlayer entrusts the security verification of various middleware, data availability layers, side chains, oracles, sequencers and other projects that require Ethereum-level security at low cost to Ethereum's node operators. This process is called Restake.
Financing situation
EigenLayer has currently conducted two public financings, namely US$14.5 million in the seed round in 2022 (valuation unknown) and US$50 million in the A round completed in March 2023 (valuation of 500 million). On January 22nd, 2024, A16Z raised $100 million!
Core Highlights
Core highlights: leader in re-staking; modular protocol; win-win ecological platform; blessing from top institutions; implementation of multi-ecological applications\
As the largest public chain, Ethereum has a very large ecosystem, with hundreds of thousands of active users every day, completing billions of dollars in transactions on Ethereum. Support this huge system\
The key lies with the stakers and developers, who form the basis of a huge business empire. And they are also the ones Eigenlayer focuses on serving. \
It can be seen that the services provided by Eigenlayer cover almost all mainstream application scenarios, and there are already dozens of head applications such as Ankr, AltLayer, Near, and Celo\
Cooperating with it, covering multiple fields such as public chain, Defi, AI, NFT, etc., Eigenlayer already has a very good ecological foundation at present. And with Ethereum’s
As Cancun upgrades, there will be more and more new applications. Using Eigenlayer as the main partner allows the services provided by Eigenlayer to accompany the development of the entire project cycle.
Eigenlayer effectively solves the pain points of Ethereum applications. Whether you are a staker, operator or project team, you will benefit from using Eigenlayer.
project team
EigenLayer can be said to be a project incubated by the University of Washington in the United States, because 5 of the 6 core members of the team are studying or working at the University of Washington. The founder is an associate professor in the Department of Computer Engineering at the University of Washington and is also a blockchain researcher at the University of Washington. The head of the laboratory. It has 30 members, more than 80% of whom are engineers. Although the team is young, it has rich blockchain technology background and research experience. It is a blockchain team full of energy and potential, worthy of attention and expectation. Simply looking at the history of blockchain projects, most projects built by purely technical teams are very successful.
Project summary
EigenLayer is a revolutionary protocol that introduces stakers to the world of “re-staking”, adding an extra level of security to existing staking infrastructure. Its approach means both the Ethereum ecosystem and private stakeholders. It still faces some challenges, but it has attracted attention and funding, showing how promising it is for the Ethereum ecosystem. \
Project pre-order information
Project name:Eigenlayer
Current valuation: 10 billion +\
Affiliated track:Re-staking re-staking protocol\
Investment agency:
On May 24, 2022, EigenLayer completed angel round financing of US$10 million, invested by dao5, cFund, Coinbase Ventures, etc.;
On August 1, 2022, EigenLayer completed a $14.5 million seed round of financing, led by Polychain Capital and Ethereal Ventures.
On March 28, 2023, EigenLayer completed a US$50 million Series A financing, led by Blockchain Capital, with participation from Coinbase Ventures, Polychain Capital, Bixin Ventures, Hack VC, Electric Capital, IOSG Ventures, etc.
Locking mechanism: lock 1 and release 12\
Total amount:10B\
Expected to go online: second quarter\
Project unit price: Add teacher WeChat Ww298673\
First: coinbase, Binance, Oyi
Official website: https://www.eigenlayer.xyz/
Official Twitter: https://twitter.com/eigenlayer
What exactly is the primary market?
The subscription price in the primary market is the lowest, and the subscription price in the primary market may be only one-tenth of the price on the online exchange! For example, in 2014, the private price of Ripple XRP was 0.0000007 yuan. With an investment of 5 yuan, you can buy 7.1 million units, and the price on January 4, 2018 was 20 yuan each. The cost is 5 yuan, and you can earn more than 100 million! In 2014, the private price of Ethereum ETH was 1.89 yuan, and with an investment of 20,000 yuan, you can buy more than 10,000 yuan. On January 14, 2018, the price of Ethereum was more than 10,000, and the cost was 20,000. Earn more than 100 million! The coins that can be traded in the secondary market are all speculative coins. It is very difficult to get a hundred times or a thousand times coins!
What is the difference between primary market and secondary market?
The primary level is the market for currency issuance, and the secondary level is the market for trading and buying. Most of the currency speculation that everyone talks about is the secondary market, where you can buy and sell freely. The profit is based on the time when you are exposed to the news, the timing of entering the market, and the price is different, which also results in different profits. What about the primary market? In the primary market, you have to buy before the currency is listed on the exchange. You cannot buy and sell freely in the middle. The purchase price is lower than the online price. To participate through private placement, you need to wait until the currency is listed on the exchange. You can make profits by buying low and selling high. Generally speaking, it is normal for a currency to double when it goes online on the mainnet. Dozens of times are common. \
The secondary market refers to the market where coins can be bought and sold freely after being listed on an exchange. An open market where everyone can buy and sell on an exchange. The secondary market in the crypto usually refers to exchanges.
Therefore, compared with the secondary market, the primary market is more stable. It is not as easy to chase the rise and fall as the secondary market, and the operation is too difficult.
How to participate in the crypto market?
At present, many people are unable to participate in primary market investment. The reason is very simple, that is, it is difficult for ordinary people to participate in investment at extremely low prices under the monopoly of large-scale transparent institutions. In addition, the primary market information is relatively closed, the quality of projects is uneven, and investors also need to have the ability to identify. Not every project meets investors’ psychological expectations. You can filter from the following perspectives
The investment institution of the project party. Good projects can attract the participation of well-known institutions through their influence. Then there is the plan to go to the primary market project of the exchange crypto, which itself is a manifestation of strength. There must be a lot of popularity, and more traffic and popularity will attract more people to participate.
How big is the potential of the primary market?
Many high-quality projects are prohibited from participation by some countries such as China and the United States, and require identity authentication from other countries. And the amount that can be obtained will be allocated according to the degree of project participation. It does not mean that how much money you invest can make the transaction.
The potential of the primary market is quite large. Many people who have made a lot of money have become rich through the primary market. After all, the currency purchased is always at the lowest price. As long as it can be listed on the exchange, it can usually double. The specific number of times is also related to the size of the exchange. \
How to buy coins in the primary crypto market?
The primary market, also called the issuance market or the primary market, is relative to the secondary market. The popular understanding in the crypto is the market before listing on the exchange. In the primary market, you can buy the project token Token at the lowest price. After the project token is listed on the exchange, it will increase in value and reach a certain profit and then be shipped, at the lowest cost. in exchange for maximizing profits.
Theoretically, a general project will go through a seed round, a private placement round, and a public placement round. The price increases in each round, and multiple price differences are common. In particular, the price of a project's seed round is also very low. After the project token is listed on the exchange, it is the secondary market. At this time, the price difference between the primary market and the secondary market is extremely obvious. High-quality projects in the bull market may have a price difference of hundreds of times.
How do ordinary people enter the primary market?
The information in the primary market is usually relatively closed and the threshold is high. Generally, currency enthusiasts suffer from the lack of channels to intervene. Therefore, some communication communities are needed to capture market opportunities to avoid missing out on high-quality projects. So how to effectively participate in the primary market of the crypto?
The investment institution of the project is also very important. It usually recognizes the project and can also attract the participation of well-known institutions in the circle.
Therefore, the most effective way at present is to subscribe for primary market project tokens through the community. It is very difficult for individuals to enter the primary market. In addition, no matter how good a project is, you must have a keen eye, be aware of risks, and participate rationally.
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