We’re excited to share the latest developments and key takeaways from this month’s Operator Working Group call, an integral component of our collaborative efforts on EigenLayer. 

Figment takes part in these monthly calls as part of the initial operator working group testing EigenLayer and EigenDA, the first Actively Validated Service (AVS) that will be launched on EigenLayer.

As we navigate the evolving landscape of restaking, these updates underscore our commitment to innovation, security, and compliance.

EigenLayer

At the Rollup Developer Summit in Denver, Sreeram Kannan, founder of EigenLayer, talked about EigenDA in the context of moving cloud services to crypto.

Some of the more interesting takeaways from the talk:

• Unlike some other data availability models, EigenDA improves with decentralization – transactions become cheaper for users
• EigenLayer sets up an ecosystem for builders that allows them to incorporate other AVSs or components from them fostering modularity and building on the network’s flywheel
• Dual staking on EigenDA means that both staked ETH and a native token will be accepted to secure EigenDA, implying a token launch in the near future

Actively Validated Services (AVSs)

There are between 50 to 60 AVSs at some stage of development from pre-development through to being on the verge of launch.

One of the most pressing topics on people’s minds is understanding what level of rewards can be expected for these various AVSs? 

Researchers can look at things like hardware requirements, monitoring, and maintenance on the operator’s side or restaked tokens supplied vs demanded, but there are important discussions happening behind the scenes that are just as important.

The reality is that many of these AVSs are in the process of raising funds. There are negotiations happening between these AVSs and operators as well as protocols like LRTs. The AVSs would like to be able to reflect a large amount of restaked tokens and operators ready to support their AVS and the operators and protocols (like LRTs) want to negotiate a certain level of rewards.

(Source)

It is unclear how many AVSs will offer rewards in ETH and how many will issue their own tokens. For AVSs seeking to launch before they have issued their tokens (i.e., Token Generation Event, TGE) a stopgap will likely be required for restakers and operators. Offering points is one potential solution, much the same way that EigenLayer is offering restaking points, AVSs could potentially offer points until their TGE. Depending on timing some AVSs could be as far as six to nine months away from token launch. Indeed, secondary markets have developed for these points.

Liquid Restaking Tokens (LRTs)

Liquid restaking protocols are hard at work.

Rio Network is heads down testing its infrastructure with operators:

(Source)

Renzo Protocol recently integrated with Connext Bridge making restaking on Arbitrum possible and thereby bringing down the cost to restake:

(Source)

In closing, this month’s Operator Working Group call has illuminated the path forward for EigenLayer and its associated projects.

As we move closer to mainnet launches and the limitations are lifted, there is a large potential for growth and innovation in the restaking ecosystem. We appreciate your continued support and engagement as we shape the future of staking together. 

Stay tuned for more updates, and as always, feel free to reach out with any questions or feedback.

The information herein is being provided to you for general informational purposes only. It is not intended to be, nor should it be relied upon as, legal, business, tax or investment advice. Figment undertakes no obligation to update the information herein.