EigenLayer introduces restaking, which is a mechanism that enables users to rehypothecate their staked ETH to get additional yield. By doing so, users can extend the underlying security of their staked ETH to applications integrated with EigenLayer. In short, restaking allows applications to access shared security from Ethereum.
There are a number of applications that can benefit from EigenLayer. Some of which include data availability layers, oracle networks, bridges, new consensus protocols, and of course blockchains. Other implementations will also be discovered over time so the design space is quite large.
Target Addressable Market
As of April 2023, the total value staked in Ethereum surpassed $34 billion, with 18m...