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EigenLayer introduces the concept of restaking on the Ethereum network, enabling individuals who stake ETH to generate additional rewards. One of our latest articles details our EigenLayer Public Operator, and includes information that restakers need to know. Learn more about our EigenLayer offering: https://lnkd.in/edAQt6cy

What is EigenLayer? EigenLayer is a rather innovative protocol built on Ethereum that's shaking up the world of staking. With its concept of "restaking," EigenLayer is allowing users to leverage their staked ETH in exciting new ways, while also fortifying the security of the entire Ethereum ecosystem. The protocol launched its mainnet on April 9, 2024, and the convenience level for users just shot up.  Intrigued? Let's dive in.

EigenLayer introduces the first concept of restaking within the Ethereum network, enabling $ETH stakers to unlock additional rewards. Discover the intricacies of Figment's participation in EigenLayer, the design of our Public Operator, and vital insights for those engaged in restaking in one of our recent articles. Dive into our EigenLayer public offering: https://lnkd.in/eD5sqhMt

Excited to share our newest resource on EigenLayer - an FAQ discussing #restaking within the Ethereum ecosystem! 🌟 Unlock the potential of #restaking on Ethereum and discover how you can elevate your ETH rewards. Read more in the FAQ: https://lnkd.in/dfHwq8He

Unlocking Greater Value from Ethereum: An Introduction to Liquid Restaking Personal analysis, not related to my work 🚀 Introduction: Put your #Ethereum to work with #LiquidRestaking instead of letting it sit in your wallet. Let's delve into this strategy, followed by a comparative analysis of Liquid Restaking Protocols. 🌟 What is Liquid Staking? Liquid Staking involves depositing your #ETH as collateral to participate in network consensus and earn rewards. The twist? You receive a representative token, known as a Liquid Staking Token, in return, allowing you to remain liquid while continuing to earn rewards. 🔗 What is #Eigenlayer and #Restaking?  Eigenlayer allows users to "restake" their Liquid Staking Tokens (LST) on their platform to earn extra yield. Users delegate their LST to operators who are securing Advanced Validation Services (AVS). By delegating to these operators, users enable the use of their tokens to bolster AVS protocol security. This method allows AVS to inherit the security features of Ethereum through the strategic use of LSTs. 🛡️Risks: Although I always prefer to talk about potentials, a sophisticated investor unfortunately also has to talk about risks: In the EigenLayer ecosystem, stakers and operators are closely linked, especially concerning risks enforced by smart contract slashing. By delegating ETH to operators, stakers assets become tied to the operators operational integrity. If an associated operator acts maliciously, EigenLayer enforces slashing in response to misconduct, which leads to the user loosing parts of his stake Furthermore, vulnerabilities in the protocols (AVS) developed on EigenLayer could cause honest nodes to be unfairly slashed. 🔄 What is Liquid Restaking? Liquid Restaking is a more advanced form of Liquid Staking. Initially, you stake Ethereum and receive a representative token, such as stETH or rETH. Liquid Restaking builds on this by allowing you to restake these tokens on Eigenlayer through an additional protocol. Rather than staking directly on Eigenlayer, a restaking protocol does this on your behalf. It stakes your liquid staking tokens and issues a new "Liquid Restake Token". This approach compounds your initial staking, offering additional rewards and enhancing your return potential and offering enhanced liquidity. 💸 Maximizing Profits through Liquid Restaking: Initially, you receive regular staking rewards for your staked Ethereum However, Liquid Restaking introduces additional layers of profit: Restaking Gains: By restaking your liquid staking tokens, you earn extra rewards on top of your initial staking rewards. Airdrops as Bonus Rewards: Both the Eigenlayer platform and various Liquid Restaking providers incentivize participation through #airdrops, which essentially are free bonus tokens 🔍 Benchmarking Providers: To assist you in making an informed decision, I have analyzed and compared all Liquid Restaking providers (As of 12.01.2024). What are your thoughts?

With the upcoming #Ethereum upgrade expected in Q1, named #Pectra, the maximum amount of $ETH staked to a single validator will increase from 32 ETH to 2048 ETH, a 64x increase. The number of active validators on the Ethereum network recently surpassed 1 million, a high number which increases coordination efforts and strain on the network. The change has two main benefits: -It enables stakers to stake any amount above 32 ETH, no longer do you need to stake in multiples of 32 ETH (i.e. I can have a validator with 50 ETH) -It enables large stakers to run fewer validators as they can deploy roughly 8m USD (ETH price of 3800 USD) on a single validator. This will lower cost and operational complexity. Open question remains how slashing will be treated for larger validators. Current penalty is 1/32 which would equal 64 ETH or 240k USD for a 2048 ETH validator, quite a painful potential loss. There are discussions ongoing to lower the potential penalty. Note that the minimum amount to run a validator will remain unchanged at 32 ETH. Good article by Coinbase below with more explanation. If you want to have a look at the validator growth and status yourself a look here: https://lnkd.in/eTMvRkbf #staking https://lnkd.in/eXUUHe3W

#Ethereum adoption is on the rise, which has created a new (but promising) challenge for its community: a rapidly increasing validator set. Although this unprecedented surge in demand represents growth for the network, it also poses questions surrounding centralization and technical capacity. Read our recent article to learn about potential solutions and what may come next for Ethereum: https://lnkd.in/e6miVRkY

Arbitrum is a Layer 2 scaling solution for Ethereum, designed to offer faster and cheaper transactions by moving computation off the main Ethereum chain. Bridging ETH from the Ethereum mainnet to Arbi...

🗓️ Mark your calendars! The Ethereum mainnet upgrade named Dencun is happening on March 13. Ethereum will reach a pivotal milestone in its scalability journey with this upgrade. 🔍 The Dencun upgrade introduces Proto-Danksharding via EIP-4844, promising significant reductions in transaction costs and expanding Ethereum's capabilities beyond current limits. The innovative use of "blobs" for short-term data storage lays the groundwork for more efficient Layer 2 solutions. 🛠️ Kiln's active involvement in testnet phases like Sepolia and Holesky underscores our commitment to the development and testing of the Dencun upgrade. 👉 Learn more about the Dencun upgrade on our latest blog post: https://lnkd.in/emzGQ7_f