EigenLayer is a protocol built on Ethereum that introduces restaking, a new primitive in cryptoeconomic security. This primitive enables the reuse of ETH on the consensus layer. Users who stake ETH natively or with a liquid staking token (LST) can opt-in to EigenLayer smart contracts to restake their ETH or LST and extend cryptoeconomic security to additional applications on the network to earn additional rewards.
In this guide, we will explain how the EIGEN token works and walk you through the steps of staking and delegating EIGEN tokens on EigenLayer.
What is EIGEN?
EIGEN is a novel token designed to expand the capabilities of decentralized systems by addressing intersubjective faults and enabling the creation of new, innovative applications. It is currently in a meta-setup phase, where the community is actively involved in shaping its future development.
EIGEN aims to address "intersubjective" faults in decentralized systems, which are faults where there's broad agreement among observers but not mathematically provable. It works by utilizing "slashing-by-forking," where a challenger can create a fork of the token if they believe most stakers are behaving maliciously. If the community agrees, the malicious stakers are slashed in the new fork, losing their value.
EIGEN introduces four new features compared to previous token forking mechanisms:
- Universality: Designed to be used across any application in EigenLayer.
- Isolation: Utilizes a two-token system to prevent forking from affecting applications that don't support it.
- Metering: Requires a bond for challenges to deter malicious actors.
- Compensation: Ensures AVSs can slash malicious stake and redistribute it to users.
EIGEN staking and ETH restaking can complement each other in a delegation system. ETH restaking is used for safety properties, while EIGEN staking addresses liveness and censorship resistance.
EIGEN enables the creation of new Active Validated Services (AVSs) on Ethereum with strong cryptoeconomic security, such as oracles, data availability layers, databases, and more.
Please read an EIGEN overview for more detailed information about the EIGEN token.
EIGEN Staking and Delegation
Staking EIGEN enables you to secure Actively Validated Services (AVSs) on EigenLayer, complementing ETH restaking by addressing different network faults. Presently, you can stake EIGEN to secure only EigenDA, a high-performance data availability system for Ethereum rollups. In the near future, additional AVS options will be available for staking.
Everstake is proud to be one of the trusted operators of the EigenDA active operator set accepting EIGEN delegation. By choosing Everstake, users can ensure their tokens are managed by a reliable and experienced validator.
Why Stake EIGEN?
Staking EIGEN tokens offers several benefits, including:
- Network security: By staking, users help secure AVSs.
- Rewards: Earn rewards for participating in the network's validation process.
- Support decentralization: Contributing to a more decentralized and robust ecosystem.
For detailed information, visit the EigenFoundation FAQ on staking.
How To Stake EIGEN?
- To get started, you have to obtain EIGEN. If you are eligible to claim it on the EigenLayer website, you can participate in staking and delegation.
- After obtaining EIGEN, go to the EigenLayer app and hit Connect Wallet. You can choose from MetaMask, Coinbase Wallet, OKX Wallet, or Wallet Connect.
- Select Restake on the upper panel. You'll see several options: liquid staking tokens, native restaking of your staked ETH, and EIGEN staking.
Hit EIGEN for depositing and unstaking.
- Specify the amount of EIGEN you wish to stake. Сheck everything is correct (including the address), hit Deposit, and then confirm and sign the transaction.
- Once the transaction is successful, you’ll see a pop-up message in the lower right corner of the screen confirming the deposit was successful.
- You will see a deposited EIGEN balance updated and a DELEGATE button appear.
How to delegate EIGEN?
- Go to the Operator tab in the header of the screen. Among all the options in the list, choose delegation with Everstake. Type Everstake in the search bar or go directly to our profile on EigenLayer.
- Press Manage as shown in the screenshot above, and then hit Delegate in the right-hand section (your staked EIGEN balance will automatically be visible there).
- The only thing left is to approve and sign the transaction in your wallet. Afterward, you can control your stake from the Dashboard or Restake tab.
Why delegate to Everstake?
Everstake is a top-rated node operator that performs validation processes for EigenLayer ecosystems, servicing multiple AVSs. We support AltLayer MACH, Automata Multi-Prover AVS, Brevis coChain AVS, EigenDA, Eoracle, Lagrange State Committees, Omni Network, Witness Chain, Xterio Mach and DODOchain MACH (both powered by AltLayer).
This selection resulted from deep research and modeling on AVSs main parameters by our R&D department, including risk level assessment and economic sustainability. This comprehensive evaluation ensures that the selected AVSs meet the reliability, security, and performance criteria to fulfill our staker's interests.
Everstake has received the status of a Verified Operator from Staking Rewards. We are serving more than 735 thousand users over 70 blockchains, delivering industry-leading performance in terms of speed and security.
Thanks to our impressive track record as a multi-chain validator, Everstake has had zero slashing events on Ethereum, developed the first non-custodial non-liquid pooling solution for Ethereum, and created numerous infrastructural services for other blockchains like Solana and Cosmos.
With Everstake you will get the best service managed by experienced and seasoned professional teams to provide some of the best conditions currently in the crypto market today.
Conclusion
Staking and delegating EIGEN on EigenLayer significantly advances cryptoeconomic security and decentralization. Users contribute to the network's robustness and resilience by participating in this innovative process while earning rewards. EIGEN’s unique features, such as slashing-by-forking and dual-token system, offer enhanced security and fault tolerance across various applications.
Following the detailed steps in this guide, you can easily stake and delegate your EIGEN tokens, thereby supporting the growth of Active Validated Services (AVSs) like EigenDA. Partnering with a trusted operator like Everstake ensures your tokens are managed reliably, maximizing security and rewards.
As the platform matures and more AVSs adopt the technologies, the possibilities of staking for the initial stakers will increase. Everstake supports any initiative by providing such staking services to all AVSs on EigenLayer.
EigenLayer currently offers restaking for 12 LSTs, and Everstake oversees delegation in each. Learn more about these LSTs, including dedicated how-to guides, via this link.
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