EigenLayer to Introduce “Shared Security” Mechanism for Applications

The restaking protocol EigenLayer plans to implement a “shared security” system for decentralized applications, supported by a common network pool, according to The Block.

EigenLayer offers the ability to reuse ETH on the Ethereum mainnet or in liquid staking pools as wrapped tokens on integrated platforms. The resulting coins can be used to verify the security of external networks outside the EVM ecosystem.

The team aims to transform the project into a platform for dapps, simplifying the launch of other protocols by providing shared security. The mechanism will allow all services in the network to utilize the entire amount of ether in restaking for security.

According to DeFi Llama, the total value of funds placed through EigenLayer is nearly $1.8 billion at the time of writing.

“An attacker would need $1 billion in capital to attack a single service. The pool gives such shared security a certain robustness and reliability,” noted project founder Sriram Kannan.

EigenLayer also intends to offer an insurance mechanism for applications in the “unlikely event” that the network fails to provide protection. This system will allow the affected project to recover a certain amount.

In March 2023, EigenLayer raised $50 million in a Series A funding round, valuing the company at $750 million.

A month later, the team launched a test network based on the Ethereum testnet Goerli.