EigenLayer (EIGEN): Re-staking revolutionizes the Ethereum ecosystem, with a promising market value

I. Project introduction

 

EigenLayer is a decentralized protocol based on Ethereum, aimed at improving the security and efficiency of the Ethereum network through a shared economic incentive mechanism. The project allows users to participate in the consensus mechanism of multiple networks by staking their Ethereum tokens (ETH), thereby enhancing the overall security of these networks. The uniqueness of EigenLayer lies in its provision of an open staking market, where users can fully utilize their staked assets to obtain more profits without sacrificing decentralization.

 

In this way, EigenLayer is committed to creating a safer and more efficient blockchain ecosystem, while providing users with more economic incentives.

 

II. Project highlights

 

EigenLayer, as an innovative protocol on Ethereum, significantly improves network security and user economic benefits through shared staking mechanism and open market design. The following are the main highlights of the project.

 

1. Shared Staking Mechanism: EigenLayer introduces a unique shared staking mechanism that allows users to use their staked Ethereum tokens (ETH) for the consensus process of multiple blockchain networks. In this way, users can not only enhance the security of multiple networks, but also to reuse their staked assets between different networks, improving overall efficiency.

 

2. Open Staking Market: EigenLayer has created an open staking market where users can freely choose and participate in various staking opportunities, fully utilizing market dynamics to maximize their investment returns. This market mechanism provides users with flexibility and more choices, enabling them to allocate investments based on their own risk preferences and return goals.

 

3. Enhance cyber security: By using users' staked ETH for multiple blockchain networks at the same time, EigenLayer significantly enhances the security of these networks and reduces the possibility of attackers launching attacks on a single network. This multi-level security mechanism makes the entire blockchain ecosystem more stable and trustworthy.

 

4. Efficient asset utilization: Users can maximize the utilization efficiency of their existing assets through EigenLayer's shared staking mechanism without increasing investment costs. In this way, users can obtain more staking returns and economic incentives without increasing investment costs.

 

5. Decentralization principle: EigenLayer always adheres to the design principle of decentralization, ensuring that all users can participate in the consensus and security mechanism of the network fairly. Through this decentralized governance model, EigenLayer maintains the transparency and fairness of the network, enhances user trust and participation.

 

6. Economic Incentive Mechanism: EigenLayer encourages users to actively participate in staking and cyber security maintenance by providing an attractive Economic Incentive Mechanism. This not only brings additional benefits to users, but also promotes the healthy development and long-term stability of the blockchain network.

 

III. Market value expectations

 

With the passage of Ethereum ETF, market funds are paying attention to the Ethereum ecosystem, and the re-staking field is surging. As the leading protocol in the field, EigenLayer, according to defillama data, currently has a TVL of up to $16 billion, which can be said to have gained widespread attention and trust from market funds.

 

The staking leader Lido TVL is 33.80 billion, Eigen's TVL 16 billion, according to the total amount of TVL staked by Eigen is 47.3% of the total TVL of LDO, the circulating market value of Lido is $1.60 billion, and the circulating market value of Eigenlayer is $800 million. If the token adopts airdrop partial circulation is 113 million, then the price is 7U.

 

Considering that Eigenlayer is a leader in re-pledging and that pledging its tokens has potential airdrop returns, coupled with the fact that such projects are bound to be popular and have strong liquidity. At the same time, due to the similar token attributes to CelesTia, after the listing, a large number of people rushed to buy after the airdrop selling pressure and market washing operation, the market value peak is likely to reach TOP50 or above, that is, 3 billion USD circulation market value, and its price will reach 12U to 27U.

 

Currently, the latest pre-market transaction price of Bitget is 5.79U. With the expectation of a rise in the overall market, there may be at least a threefold increase.

 

IV. Economic model

 

EigenLayer's tokens are mainly used to support its restaking mechanism. By staking ETH or other liquid staking tokens (such as stETH, rETH, etc.), users can provide encrypted economic security for other protocols and obtain protocol fees and rewards. In addition, restaking can improve verification efficiency, reduce marginal costs, and support verification services for new protocols.

 

According to The Block, the total supply of EigenLayer tokens at launch was 1.67 billion. The foundation has allocated 45% of the tokens to its community. This is further broken down into staking airdrops (15%), community initiatives (15%), and ecosystem development (15%).

 

In addition, 29.5% of the tokens have been allocated to investors, while early contributors will receive 25.5%.

 

The total lock-up period for investors and early contributors is three years. The first year involves complete lock-up, followed by gradual release at a rate of 4% per month over the next two years.

 

EigenLayer refers to the community airdrop as "staking" and will distribute 15% of the token supply to those who use the platform to stake. These tokens will be distributed over multiple seasons. In the first season, the foundation will distribute 5% of the token supply to users based on the staking activity snapshot on March 15, 2024. In the first season distribution, 90% of the tokens will be collected by eligible re-participants on May 10th - the claim period is 120 days, and the final 10% will be collected in the second phase of the first season one month later.