EigenCloud (prev. EigenLayer)

About EigenCloud (prev. EigenLayer)

EigenLayer is an Ethereum restaking protocol that lets stakers reuse ETH or liquid staking tokens. It extends Ethereum-linked security to extra decentralized services called Actively Validated Services. EIGEN Role EIGEN works for tasks that need to rely on observers' judgment rather than solely on on-chain proof. Such tasks can be data availability, oracle input, and artificial intelligence inference within certain limits. This allows the token to help perform such tasks, which are not possible for the smart contract alone. Operators provide EIGEN to undertake validation and coordination tasks of supported services. The system can incentivize successful work and punish operators who fail to meet task requirements. In this case, EIGEN is used as collateral for services that require consensus by observers. Network Design EigenLayer facilitates the opt-in mutual agreement between stakers, operators and Actively Validated Services (AVS). The stakers may delegate their capital to the operators who, in turn, may run AVS applications and perform validation work. It seeks to address the problem of siloed security among services on Ethereum by pooling restaked capital.